The declaration of martial law in South Korea may cause short-term instability in the cryptocurrency market. South Korea holds one of the leading positions in the global crypto economy, and its exchanges, such as Upbit and Bithumb, play a key role in global trading.
News about martial law may lead to panic among investors. South Korean traders account for a significant share of trading volume, and their reaction to political instability may affect the liquidity and prices of key cryptocurrencies, such as Bitcoin and Ethereum.
If investors start withdrawing funds into more stable assets, this could lead to a temporary correction in cryptocurrency prices. USDT and other stablecoins may become a safe haven.
In the long term, political instability may increase interest in cryptocurrencies as an alternative to traditional finance. Decentralization and lack of state control make cryptocurrencies an attractive asset.
Martial law in South Korea may cause short-term price fluctuations, but it will strengthen the role of cryptocurrencies as a means of capital preservation.
A decline is always the beginning of good opportunities!