Cryptocurrency markets in South Korea have seen unprecedented turmoil after South Korean President Yoon Suk-yeol announced emergency martial law in the country. The sudden political decision led to a sharp drop in the prices of Bitcoin and other digital currencies, such as XRP, on local exchanges, which has alarmed investors in global cryptocurrency markets.
Bitcoin hits historic low
According to data compiled from cryptocurrency exchanges like Upbit and Bithumb, the price of Bitcoin dropped by more than 30% to $62,000 in South Korea after martial law was declared. This sharp decline in the price of Bitcoin was the result of a state of fear and anxiety that swept the market, prompting many investors to sell en masse.
However, Bitcoin later began to recover, reaching over $89,000 on the Upbet platform, creating a price gap of around $4,000 compared to global markets, such as Binance and Coinbase.
Impact of martial law on other cryptocurrencies
The negative impact was not limited to Bitcoin alone, but also affected many other cryptocurrencies, including XRP, which fell by 12% to $2.45 after having seen a significant increase during the week. Coins such as DOGE and ADA also saw sharp price drops on local exchanges, with an unprecedented increase in trading volumes due to a wave of anxiety among traders.
Martial Law: An Unprecedented Political Step
President Yoon Suk-yeol declared emergency martial law in South Korea in a televised address to protect the “Free Republic of Korea” from alleged threats from North Korean forces, as well as to combat hostile forces he believes threaten the country’s stability. The South Korean president accused the opposition parliament, controlled by the Democratic Party, of undermining the government and fomenting rebellion against the regime.
Martial law gives the president sweeping powers, including restrictions on freedom of the press, assembly and personal freedoms, which has angered the country’s opposition. At the same time, these developments have escalated tensions in the financial and cryptocurrency markets, with the prices of several currencies falling sharply on platforms such as Upbet and Bithumb.
Political and economic repercussions on the country
The political decision to impose martial law came after escalating political disputes in South Korea, especially after the opposition Democratic Party pushed through a bill to cut the government budget and filed requests to impeach some senior government officials. This tense political situation prompted many investors to reduce their exposure to local markets, which was directly reflected in the prices of digital currencies.
The market is witnessing severe fluctuations.
As political tensions escalated, platforms like Uptick and Bithumb experienced temporary outages due to a massive increase in traffic to their sites. While global crypto markets saw some improvement, the local markets in South Korea were the most affected, with trading volumes skyrocketing in a quick response to the political news.
Future Market Prospects
Despite the partial recovery in Bitcoin and other cryptocurrency prices, the political situation in South Korea remains unstable, which could continue to impact the region’s crypto markets. At the moment, many experts expect the market to remain volatile amid the ongoing political turmoil. While global markets may recover quickly, the situation in South Korea remains a turning point that could impact cryptocurrency prices in the near future.
a summary
The South Korean president’s decision to impose emergency martial law has posed a major challenge to the country’s financial sector and has led to unprecedented volatility in the cryptocurrency market. With the ongoing political instability, the market remains vulnerable to volatility, which could reshape investment and trading strategies in South Korea and globally.
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