South Korea Martial Law Triggers Crypto Market Crash : Bitcoin and Altcoins Plunge

In the latest development, Cryptocurrency prices plunged and exchanges were paralyzed after South Korean President Yoon Suk Yeol unexpectedly declared martial law on Tuesday night, as reported by The Korea Herald. 

South Korean President Yoon Suk Yeol noted that he declared “emergency martial law” in response to the threats posed by North Korea’s communist forces and to eliminate anti-state elements as per a CNBC live YouTube video. The president also noted attempts by the country’s Democratic Party to impeach government officials.

“This is an unavoidable measure to ensure the freedom and safety of the people and guarantee the sustainability of the nation against the unrest stirred by these subversive, anti-state elements,” said Yoon.

Major Tokens Drop

The negative sentiment was instantly reflected in the crypto markets. Bitcoin, XRP, the two of the most traded tokens by volumes on local exchanges, plunged as low as 30% on Upbit before quickly recovering. BTC fell from $96,000 to $63,000 in U.S. dollar terms. 

Priced in South Korean won, Bitcoin’s value fell as low as ₩88,266,000 on Upbit, plunging down 33% from ₩132,429,000 in less than 30 minutes. Since then, Bitcoin’s price has slightly recovered on Upbit, valued around ₩127,000,000 worth—about $88,600 as of this writing.

“Through this martial law, I will rebuild and protect the free Republic of Korea, which is falling into the depths of national ruin… I will eliminate anti-state forces as quickly as possible and normalise the country,” he said, while requesting the public to tolerate “some inconveniences”.

Major crypto tokens quickly plunged as much as 30% against the Korean won on South Korean exchanges as the government declared emergency martial law. Notably, Bitcoin’s steep drop sent altcoins tumbling, with Ethereum sliding 35 percent and Ripple plummeting 51 percent. Domestic cryptocurrency exchanges Upbit and Bithumb also saw temporary connection disruptions.

XRP Trading Volume Surges On Upbit

XRP’s trading volume on South Korea’s leading crypto exchange, Upbit, has surged to $7 billion. The XRP/KRW trading pair accounted for nearly 30% of Upbit’s total trading volume today. Analysts suggest that the activity largely comprised sell orders as the broader crypto market faced significant pressure.

This volume has even surpassed the total trading volume of the KOSPI, the country’s primary stock market index, raising speculations on the XRP price crashing below $2 amidst unexpected political developments. The South Korean won’s exchange rate to the U.S. dollar also fell by nearly 3% following the announcement.