After South Korea’s emergency martial law announcement, a surge of USDT inflows into the Upbit exchange indicated a strong move by large traders to capitalize on the dramatic price drop of Bitcoin (BTC) and other tokens. This sudden surge hints at a typical “bottom-fishing” strategy, where traders look to buy assets at discounted prices during market corrections.
USDT Transfers Highlight Bargain-Hunting Activity
Data from blockchain analytics platform Lookonchain revealed that over $163 million worth of Tether (USDT) was transferred to Upbit within an hour of President Yoon Suk Yeol declaring martial law. Tether, the most widely used stablecoin pegged to the U.S. dollar, is often used for large crypto transactions, signaling that major investors were looking to make the most of the market dip.
The transfers were seen as an attempt by crypto “whales” to take advantage of Bitcoin’s rapid price decline, which saw BTC fall as low as $63,000 on Upbit before partially recovering.
Bitcoin’s Flash Crash and Recovery
In the minutes following the martial law announcement, Bitcoin’s price on Upbit plunged dramatically from its high of $96,000, dipping to around $63,000. However, the cryptocurrency quickly rebounded and is currently trading near $94,000. Despite the recovery, Bitcoin’s price remains slightly below the global average of $95,800, highlighting the volatility specific to the South Korean market during periods of political instability.
Political Uncertainty Spurs Increased Crypto Activity
The announcement of martial law, coupled with concerns about political censorship and control, led to increased market uncertainty. Such conditions often drive traders to seek out Bitcoin and other cryptocurrencies, which are perceived as more resistant to government interference and asset seizures. As a result, the surge in trading volumes on Upbit and the influx of USDT suggest that South Korean investors are once again reacting to a political crisis by moving toward decentralized assets like Bitcoin.
This pattern of bottom-fishing could continue to influence crypto prices in the short term, as large traders continue to adjust their strategies based on political and market conditions.
