The cryptocurrency markets in South Korea experienced a wave of volatility on Tuesday as the government briefly declared martial law, causing a significant drop in the prices of digital assets priced in Korean Won (KRW).
President Yoon Suk Yeol’s declaration of martial law was seen as a politically motivated move, leading to the military’s attempted entry into parliament in Seoul. However, the situation quickly calmed down as every member of the Korean parliament voted against the president’s declaration, rendering it invalid.
The turmoil in the political landscape had a direct impact on the prices of Bitcoin in KRW, causing a sharp dip in value. Ki Young Ju, the CEO of Korean-based CryptoQuant, expressed his concern about the chaos in South Korea’s financial markets, attributing it to the president’s political actions.
Traders who monitor Bitcoin prices in South Korea for arbitrage opportunities, known as the “kimchi premium,” observed a significant decrease in the price gap between the country and US markets. Ju noted that the political unrest in Seoul led to the kimchi premium hitting all-time lows, prompting questions about the behavior of sellers in such turbulent times.
Meanwhile, blockchain tracking firm Lookonchain reported that many whales deposited stablecoins into Upbit, one of South Korea’s largest crypto exchanges, in an attempt to capitalize on the price crash in Bitcoin. Over 163 million USDT flowed into Upbit within an hour after the declaration of martial law, indicating a rush to seize potential bottom-fishing opportunities.
As of the latest update, Bitcoin is trading at $95,772, reflecting the ongoing turbulence in the Korean crypto markets. Despite the uncertainties caused by political events, market participants are closely monitoring the situation for potential trading opportunities.
To stay informed about the latest developments in the cryptocurrency space, subscribe to receive email alerts directly to your inbox. You can also check the price action, follow us on social media platforms like Twitter, Facebook, and Telegram, and explore The Daily Hodl Mix for comprehensive coverage of the crypto market.
Featured Image: Shutterstock/iurii/Sensvector