As a seasoned crypto investor with years of experience navigating volatile markets, I’ve learned to keep a cool head amidst turbulence. The recent events in South Korea were a stark reminder of the unpredictable nature of this space. The sudden drop in Bitcoin price on Upbit was a jolt that sent shockwaves through the community.
On December 3, the value of Bitcoin in South Korea significantly dropped following President Yoon Suk Yeol’s declaration of martial law. During a live broadcast, Yoon announced his intention to “eradicate anti-government entities” and counter potential threats from North Korea’s communist regime.
Straaway, the value of Bitcoin on the Upbit exchange in South Korea fell to around 92 million won (equivalent to approximately $65,000). This represented a significant drop of roughly $30,000 when compared to the price of Bitcoin worldwide.
Traders were taken aback by an unexpected plunge in the market, which a well-known analyst referred to as a “vanishing of trading volume.” This analyst, often called Ltrd, explained that this fall was triggered when major participants withdrew from the market after the latest announcement.
He stated in a post on X (previously known as Twitter), all the participants mysteriously vanished from the trading scene. Consequently, this created an uneven ratio of buyers to sellers, causing a significant difference of 10% in the pricing of each Bitcoin trade.
The crypto market in South Korea is often challenging to penetrate due to limited accessibility. Notably, few players contribute to liquidity and price stability within the country. In simple terms, it’s remarkably difficult to participate in trading activities there, as Ltrd noted. This restricted entry has made the market particularly susceptible during a crisis when significant traders chose to withdraw their involvement.
Amidst the turmoil, a surge of sell orders infiltrated the market, intensifying the strain on Bitcoin’s price. Lrd suggested that with an increased number of liquidity providers, the predicament might have been less intense. Despite the steep decline, some analysts opined that the market had exaggerated its response to the announcement.
In a swift turn of events, the atmosphere relaxed as South Korea’s parliament unanimously voted 190-0 to rescind the martial law decree hours later. President Yoon agreed with the decision, which promptly sparked market recovery. By the day’s end, Bitcoin prices on Upbit surged back up to around 135 million won or roughly $95,000.
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2024-12-04 18:12