Crypto Market Crash in South Korea After Martial Law Declaration

As a seasoned researcher who has witnessed the ebb and flow of various financial markets, I must admit that the recent events unfolding in South Korea’s cryptocurrency sector have left me both intrigued and concerned. The sudden declaration of martial law by President Yoon Suk Yeol on December 3, 2024, has undeniably sent shockwaves through the crypto world, causing significant price drops across various digital assets.


Since President Yoon Suk Yeol announced martial law on December 3, 2024, the digital currency market in South Korea has been experiencing turmoil. This sudden political move has caused anxiety among investors, leading to a steep fall in the prices of various cryptocurrencies.

According to Lookonchain, a blockchain analysis platform, South Korea’s cryptocurrency market appears to have experienced a decline after President Yoon announced martial law.

On Upbit, the value of Bitcoin plummeted by over 30%, dropping to approximately $62,000, shortly after the martial law announcement. This significant decline created a chance for arbitrage, as Bitcoin was being sold at around $4,000 higher on global platforms.

Simultaneously, coins such as XRP, Dogecoin, and XLM experienced price drops of up to 20%. Yet, some significant bitcoin holders appear unperturbed by this trend. As per Lookonchain, several whales have moved substantial amounts of USDT to the Upbit exchange, presumably in search of opportunities to buy at lower prices (bottom fishing).

Upon the president’s declaration of martial law, I’ve noticed over $163 million flowing into Upbit, as it appears large-scale investors, or ‘whales’, are seizing this opportunity to build their coin collections at reduced prices.

Due to the intense battle between those frantically selling their assets and those seeking bargains amidst the market turmoil, I find myself compelled to inform you that Upbit has temporarily suspended its application services and experienced issues with its open API services. This is primarily due to an unexpected surge in traffic as a result of the current situation.

The unrest in South Korea’s political sphere is contributing to a decline in both cryptocurrency and conventional financial markets. Consequently, South Korean stocks have suffered losses, with exchange-traded funds (ETFs) such as the iShares MSCI South Korea ETF experiencing a drop of over 5%. Additionally, the value of the South Korean won has weakened compared to the U.S. dollar.

Read More

2024-12-03 20:53