Major Crypto Tokens Experience Sharp Decline Against Korean Won Amid Martial Law Declaration
In a surprising turn of events, major crypto tokens faced a sudden and significant drop in value against the Korean won on South Korean exchanges as the government announced emergency martial law late on Tuesday. South Korean President Yoon Suk Yeol declared the state of emergency, citing accusations against opposition parties for undermining the government, showing sympathy towards North Korea, and causing a standstill in the nation’s legislative process.
The announcement of emergency martial law had an immediate impact on the crypto markets, with Bitcoin and XRP, two of the most traded tokens on local exchanges, plummeting by as much as 30% on Upbit before quickly rebounding. Bitcoin, for instance, saw its value drop from $96,000 to $63,000 in U.S. dollar terms, based on current exchange rates.
It is well-known within crypto circles that South Korean traders have a reputation for driving euphoric rallies in tokens, which can lead to increased buying pressure and potential price fluctuations. The trading volumes on local exchange Upbit often surpass those of global platforms like Binance and Coinbase, highlighting the significant cash flow and activity surrounding cryptocurrencies in the country.
In response to the surge in user activity following the announcement of martial law, both Upbit and Bithumb, another major local exchange, have issued notices regarding delays in site feeds and performance. This indicates the heightened level of interest and engagement with crypto trading during times of political uncertainty and market volatility.
As the situation continues to unfold, it will be crucial for traders and investors to monitor developments closely and adapt their strategies accordingly. The impact of political events on the crypto market serves as a reminder of the interconnected nature of global financial systems and the importance of staying informed and prepared for potential fluctuations.