Upbit Sees Bottom-Fishing Activity as BTC Flash Crash Follows South Korea’s Martial Law Announcement

In the wake of South Korea’s emergency martial law declaration, large investors made significant moves on the Upbit exchange, transferring large sums of Tether (USDT) stablecoin to capitalize on the rapid price drop of Bitcoin (BTC) and other cryptocurrencies.

Data from blockchain tracker Lookonchain revealed that over $163 million in USDT was moved to Upbit within an hour of President Yoon Suk Yeol’s announcement. The president accused opposition parties of collaborating with North Korea and destabilizing the country’s legislative process, which led to widespread market panic.

The transfer of USDT highlights the strategy of “bottom fishing,” where whales capitalize on sharp market dips to purchase tokens at a discounted rate. “We saw many whales transferring large amounts of USDT to Upbit, likely taking advantage of the price crash,” Lookonchain noted on X.

Bitcoin’s price plummeted to as low as $63,000 on Upbit following the martial law announcement, but has since recovered to around $94,000, still slightly below the global average of $95,800, according to data from TradingView.

The state of emergency has also sparked fears of potential censorship, prompting more investors to seek out Bitcoin as a secure, decentralized alternative.