The declaration of martial law in South Korea caused cryptocurrency prices to drop on local exchanges Upbit and Bithumb, in addition to causing system outages due to traffic spikes. For example, on Upbit, Bitcoin fell to $65,000, while major altcoins like XRP, Dogecoin, and XLM experienced price drops of up to 20%.
While retail investors rushed to withdraw funds, some whales saw the market drop as an opportunity. According to Lookonchain, whales transferred over $163 million in USDT to Upbit, intending to capitalize on discounted prices. Although prices have recovered since then, analysts predict that the consequences for the market will persist.
Yoon Suk Yeol imposes martial law: Political tension at its limit
Initially, on Tuesday in South Korea, President Yoon Suk Yeol declared the implementation of martial law, imposing direct military control over the functions of the civil government, as a measure to respond to the growing criticism from the left opposition party towards the current administration.
In addition, martial law in South Korea is a rather complicated topic that has generated a lot of controversy. Basically, martial law implies a state of exception in which military authorities take control of a designated area during emergency situations. This means that civil laws are temporarily suspended and armed forces have the power to impose their authority.
But why was martial law declared in South Korea? Yoon Suk Yeol declared martial law amid a political crisis, arguing that it was necessary to maintain order and security. However, this decision was heavily criticized by the opposition and various sectors of society, which considered it an excessive and undemocratic measure.
Analysts warn: Volatility in South Korea's crypto market will continue
In all this, the trader ltrd wrote that during the declaration of martial law, "all players simply disappeared from the market." Specifically, he emphasized: "The reason is simple: it is outrageously difficult to enter the Korean market and operate in it. This means that only a few players can provide liquidity and arbitrage those discrepancies."
