South Korea’s cryptocurrency market has experienced a dramatic decline following an unexpected announcement from President Yoon Suk-yeol, who declared emergency martial law on Tuesday, as reported by CNN.
The president stated that the declaration was made to protect the nation from potential threats, particularly from North Korea’s communist forces, and to eliminate what he described as “anti-state elements.” This rare move sent shockwaves through both the global financial and cryptocurrency markets.
South Korea has not imposed martial law since 1980, which only heightened the gravity of Yoon’s statement. Martial law in South Korea gives the military direct control over civilian government operations, marking a significant shift in the country’s governance.
As the news spread, the market reacted swiftly, particularly affecting the volatile cryptocurrency sector. Major South Korean exchanges, including Upbit, Bithumb, and Coinone, saw substantial drops in the value of digital assets. Bitcoin (BTC) dropped 12% on Upbit, and Tether’s USDT fell to just 1,200 Korean won (KRW), a sharp decrease of about 84 cents.
Altcoins also took a hit, with prominent tokens such as XRP, Shiba Inu (SHIB), and Dogecoin (DOGE) seeing double-digit losses. Given South Korea’s dominance in the XRP market, the token fell by 7.7% to $2.499, as reported by CoinMarketCap. This panic-driven selling added to the growing unease among crypto investors.
The Upbit Market Index, which tracks the performance of the top 30 tokens by market capitalization, plummeted by 13.28% in a single day, underscoring the severe impact of the martial law announcement on investor confidence.
In addition to the market turmoil, Upbit’s mobile trading app experienced a crash due to an overwhelming influx of users attempting to respond to the market downturn. Many users struggled to access the app or execute trades in real-time, further intensifying the panic.
This sharp decline in South Korea’s crypto market mirrors a broader global trend, with geopolitical instability and government actions continuing to impact the volatility of digital currencies. Given the sensitivity of crypto markets to global news and events, further fluctuations are expected, particularly in regions with political uncertainty.
As South Korea maintains its military-backed control, the future of the country’s crypto market remains uncertain. While the government’s actions may either calm or exacerbate tensions, the immediate market response has been substantial.
