The assignment from the day before yesterday was given by Japan, yesterday's assignment was given by MSTR, and today's assignment is given by South Korea. However, I feel a bit overwhelmed, especially since I know almost nothing about South Korea in comparison to Japan's interest rate hikes and MSTR. I've never even been there, but I do know that the South Korean market has a significant share in cryptocurrency, and South Korean investors tend to be quite aggressive, as was evident during the LUNA incident.
However, this issue raises a more important question: is #BTC a safe-haven asset or a risky asset? If we look purely at price movements, BTC is definitely a risky asset due to its significant fluctuations. However, from the perspective of liquidity, BTC is an asset that can circulate and be accepted globally, which gives it characteristics of a safe-haven asset.
I don’t understand why South Korean investors are the first to sell BTC during a crisis. Maybe it’s because they plan to exchange Korean won for US dollars? This doesn’t quite make sense either, as based on the experiences from the Russia-Ukraine situation, it’s quite common to lock up foreign exchange, especially dollar reserves, during geopolitical conflicts. Even if there are plenty of dollars in accounts, not much can be withdrawn, while BTC or US dollar stablecoins offer better liquidity.
Although I haven't figured this issue out, it is true that after a small-scale drop, the market quickly rebounded. The nearly 30% drop likely triggered panic and a chain reaction of crashes. Some friends asked why South Korea dropped so much, but the market we observe didn’t experience such a significant drop. On one hand, the complexity of arbitrage with Korean won trading pairs is much more intricate than with dollar-denominated pairs. Additionally, the duration of the drop was not long, only about 13 minutes, and local trading teams in South Korea wouldn’t miss such a good opportunity. Moreover, compared to the global market, the trading volume in South Korea is still somewhat weaker than in the US.
Of course, if this incident had occurred during the main trading hours in Asia instead of close to the main trading hours in the US, the impact on the entire cryptocurrency space might not have been so minimal. This is the coexistence of opportunity and risk.
But essentially, this is not a major event. For cryptocurrency or #Bitcoin, it does not count as a significant negative factor, and it is likely that after a short-term adjustment, this will gradually fade.
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