South Korean cryptocurrency markets experienced significant turbulence following President Yoon Suk Yeol’s unexpected martial law declaration, creating a notable divergence between global and local crypto prices.

Bitcoin fell as low as $79,000, and XRP traded at $1.89 on Upbit for over an hour. This saw users crowd the exchanges to file purchase orders and buy these tokens at an unprecedented low price for the bull market.

A Brief Chaos in South Korea’s Crypto Market

The political crisis began when President Yoon declared martial law Tuesday night, prompting military forces to attempt entry into parliament. Yoon justified the move as necessary to combat “pro-North Korean anti-state forces.”

This announcement drove the country’s economy into a momentary chaos. The South Korean Won’s price surged against the USD, which meant a brief crypto arbitrage opportunity opened up for USDT holders.

Bitcoin plunged over 30% on South Korean exchanges, including Upbit, during Tuesday night trading while dropping only 2% in global markets. The stark difference reflected both panic selling by local traders and a nearly 3% surge in the USD/KRW exchange rate.

According to Lookonchain data, over $163 million USDT flowed into Upbit alone, as many whales placed large orders of USDT. However, lawmakers, including the leader of his own party, Han Dong-hoon, swiftly challenged martial law to restore order back to the economy.

Parliamentary opposition proved effective, with lawmakers voting to reject the martial law declaration early Wednesday. Markets stabilized following parliament’s intervention, with Bitcoin recovering to $95,167 as of 17:30 UTC on Wednesday after briefly surpassing $96,000.

Prediction Markets React

Political uncertainty has spilled into crypto prediction markets, with Polymarket launching a betting Go to Source to See Full Article
Author: Oihyun Kim