On Tuesday evening, South Korean President Yoon Suk Yeol declared “emergency martial law,” triggering a swift market reaction. The government accused opposition parties of undermining the administration, sympathizing with North Korea, and causing a paralysis in the legislative process.
This declaration led to a significant dip in major cryptocurrencies, with Bitcoin and XRP, two of the most actively traded tokens on South Korean exchanges, plummeting by as much as 30% against the Korean won. On Upbit, Bitcoin dropped from $96,000 to $63,000 in U.S. dollar terms, before quickly recovering.
South Korean traders are often credited with driving euphoric rallies in the cryptocurrency market, contributing to high buying pressure that can influence token prices. Trading volumes on local exchanges like Upbit sometimes surpass those of major global platforms like Binance and Coinbase, reflecting the significant involvement of South Korean investors in the crypto space.
In the wake of the martial law declaration, both Upbit and Bithumb, two leading South Korean exchanges, issued notices about delays in site feeds and performance, citing a surge in user activity.
