Cryptocurrencies Plummet After Martial Law Declared in South Korea
The conflict in South Korea led to a collapse in cryptocurrency markets after the declaration of martial law by President Yoon Suk-yeol.
Cryptocurrency prices plummeted on South Korea's largest exchange Upbit after President Yoon Suk-yeol announced the introduction of emergency martial law on December 3.
In a televised address, President Yoon stated that martial law was being implemented to "protect liberal South Korea from threats posed by North Korea's communist forces and to eliminate anti-state elements," reports CNN.
History and Context
Martial law in South Korea implies the establishment of direct military control over the functions of the civilian government in response to a significant threat to public order. According to local publication Hankyoreh, the last time martial law was declared in the country was in 1980.
South Korea is one of the largest global centers for cryptocurrency trading. Experts estimate that about 10% of the country's population actively participates in cryptocurrency transactions, and the daily trading volume on local exchanges regularly exceeds $5 billion.
Impact on the Cryptocurrency Market
After the declaration of martial law, most cryptocurrencies crashed on leading South Korean exchanges Upbit, Bithumb, and Coinone. The price of Bitcoin on Upbit at one point fell by 12%, while Tether USDT dropped to 1,200 Korean won (about $0.84).
1-day chart BTC/USDT. Source: Cryptovizor cryptocurrency screener
Extent of the Decline
Double-digit drops were also reported for most altcoins, including XRP, Shiba Inu, and Dogecoin. The Upbit Market Index, reflecting the dynamics of the 30 largest tokens by capitalization on the exchange, fell by 13.28% in one day.
1-day chart XRP/USDT. Source: Cryptovizor cryptocurrency screener
The Upbit mobile app is currently unavailable, likely due to a sharp increase in traffic. Experts note that such outages often occur during periods of high volatility when many traders attempt to access trading platforms simultaneously.
The current situation demonstrates the close interconnection between geopolitical events and the South Korean cryptocurrency market, one of the key players in the world of digital assets.