The martial law declared by South Korean President Yoon Suk Yeol sparked turmoil in the cryptocurrency market, sending major token prices crashing and causing exchange outages.
Martial Law Implementation
South Korean President Yoon Suk Yeol unexpectedly announced martial law on Tuesday night. This measure was taken in response to threats from North Korea’s communist forces and to eliminate anti-state elements. The president also noted attempts by the country's Democratic Party to impeach government officials.
Crypto Market Reaction
The negative sentiment was instantly reflected in the crypto markets. Bitcoin and XRP, two of the most traded tokens on local exchanges, plunged by 30% on Upbit before recovering slightly. In U.S. dollar terms, Bitcoin fell from $96,000 to $63,000. Priced in South Korean won, Bitcoin’s value fell as low as ₩88,266,000, representing a 33% drop from ₩132,429,000 in less than 30 minutes. Since then, Bitcoin’s price slightly recovered on Upbit, valued around ₩127,000,000—about $88,600 as of this writing.
Currency Market Impact
The declaration also impacted the South Korean won’s exchange rate to the U.S. dollar, which fell by nearly 3%. The martial law announcement heightened financial market tensions, exacerbating the overall economic situation in the country.
The declaration of martial law in South Korea has significantly affected cryptocurrency and currency markets. The unfolding situation will be closely monitored by investors and analysts to assess the long-term implications of this measure on the country's economy.
