Key Points
- South Korea’s crypto market experiences a significant drop after President Yoon Suk-yeol declares martial law.
- Cryptocurrencies including Bitcoin (BTC) and Tether’s USDT, witness major declines across all exchanges.
A sudden downturn has hit South Korea’s crypto market following an unexpected declaration of martial law by the country’s President, Yoon Suk-yeol, as reported by CNN.
The president stated that the move was in response to protecting the nation’s borders, causing a ripple effect in global financial markets and raising concerns in the crypto sector.
Unexpected Declaration Leads to Market Plunge
President Yoon cited the need to guard South Korea from North Korea’s communist forces as the reason for the martial law.
He also mentioned the aim to eliminate “anti-state elements”. This news sparked immediate reactions from the public and financial markets, especially the unstable crypto sector.
This declaration of martial law, the first since 1980, implies direct military control over civilian government functions, making the situation even more serious.
As the news spread, markets, including the previously stable cryptocurrencies, experienced significant declines across all major exchanges.
Major South Korean exchanges such as Upbit, Bithumb, and Coinone witnessed sharp drops in the value of digital assets. Bitcoin (BTC) saw a steep 12% decline on Upbit, while Tether’s USDT fell drastically to a significant low of 1,200 Korean won (KRW), a decrease of around 84 cents.
Altcoins were also impacted by the downturn. Popular tokens like XRP, Shiba Inu (SHIB), and Dogecoin (DOGE) experienced double-digit losses. XRP, which has a large market liquidity in South Korea, fell by a sharp 7.7% to $2.499 according to CoinMarketCap. This panic selling contributed to the overall unease in the digital currency market.
The Upbit Market Index, which monitors the performance of the exchange’s top 30 tokens by market cap, dropped by 13.28% in a single day, indicating the impact of the martial law declaration on crypto investor confidence.
Upbit’s Trading App Crashes Due to Increased User Activity
Following the martial law announcement, the Upbit mobile trading app crashed, likely due to a surge in traffic as traders rushed to withdraw.
The app’s infrastructure couldn’t handle the influx, leaving many users unable to execute trades in real time. This intensified the tension as users scrambled to protect their investments or seize market opportunities.
The sharp fall in crypto prices on South Korea’s major exchanges reflects a global trend influenced by geopolitical tensions and government actions. Crypto markets, known for their sensitivity to news and global events, are expected to continue to be volatile, especially in politically unstable regions.
The future of the South Korean crypto market remains uncertain as the government maintains its military-backed control. Whether martial law will ease or exacerbate tensions is unclear, but the market’s reaction has been decisive.
