Just In: South Korea’s Crypto Market Crashes As President Yoon Declares Martial Law
Summary
- South Korea’s crypto market has crashed, with significant price declines in coins like Bitcoin.
- President Yoon declared martial law in the country.
- The Central Bank has promised to provide unlimited liquidity if needed.
South Korea’s crypto market has plunged following President Yoon Suk Yeol’s declaration of martial law. This announcement has triggered widespread panic, leading traders to quickly withdraw their funds in fear of the economic instability it may cause. As a result, the market has seen sharp declines in the value of major cryptocurrencies.
Bitcoin, along with other digital currencies, has experienced significant price drops as traders rushed to secure their investments. The uncertainty surrounding the situation has fueled a wave of selling, further driving down the market’s overall value. The announcement has shaken investor confidence, causing many to fear a prolonged downturn.
In response to the crisis, cryptocurrency exchanges in South Korea have seen a surge in withdrawal requests. As the market continues to react to the government’s actions, it remains uncertain how long this volatility will last. Traders are left grappling with the consequences of President Yoon’s decision and its impact on the crypto economy.
South Korea’s Crypto Market Collapses After Martial Law Declaration
Onchain analytics platform Lookonchain reported a significant crash in South Korea’s crypto market following President Yoon’s declaration of martial law. The announcement caused panic among investors, triggering a sharp decline in cryptocurrency prices across various exchanges. On the Upbit exchange, the price of Bitcoin plummeted by as much as 30%, highlighting the market’s intense reaction to the political development.
Other major cryptocurrencies also saw considerable losses in the wake of the martial law declaration. Coins like XRP, Dogecoin, and XLM experienced price drops of up to 20%, as traders rushed to withdraw their funds or liquidate their positions. This widespread sell-off caused a wave of volatility in the market, with many traders fearing further declines.
Despite the chaos, some large-scale investors, known as crypto whales, appear to be unaffected by the market turmoil. Lookonchain noted that many of these whales have been transferring large amounts of USDT to the Upbit exchange. This behavior suggests that they may be preparing to capitalize on potential buying opportunities once the market reaches its bottom.
The strategy of bottom-fishing, where investors wait for a market dip to acquire assets at a lower price, appears to be a key move for these whales. By flooding the exchange with USDT, they are positioning themselves to make significant purchases when they believe prices have hit their lowest point. This approach contrasts with the general panic among smaller traders who are fleeing the market.
The presence of these whales in the market may help stabilize prices to some extent, as their large-scale investments could inject liquidity and restore some level of confidence. However, the overall sentiment remains uncertain, with many traders still on edge due to the volatile political situation in South Korea.
As the situation develops, it remains to be seen how the market will respond in the coming days. While smaller traders continue to withdraw from exchanges, crypto whales seem to be waiting for the right moment to re-enter and potentially profit from the market’s downturn. This divergence in strategy highlights the stark differences in risk tolerance between retail traders and institutional players in the crypto space.
Since the president declared martial law, more than $163 million has flowed into Upbit as whales seek to acquire coins at a discount. This influx of capital comes amid a battle between panic sellers and bottom-fishers looking to capitalize on the market downturn. In response to the surge in activity, Upbit announced that its applications and open API services are temporarily suspended due to the increased traffic, causing delays for users.
President Yoon Imposes Martial Law
The crypto market crash followed South Korea’s President Yoon’s declaration of emergency martial law. According to a CNN report, the president announced the measure while accusing the country’s main opposition party of sympathizing with North Korea and engaging in anti-state activities.
This marks the first time since 1980 that a sitting president has declared martial law in South Korea. However, it is important to note that the country’s parliament has the authority to vote to lift the martial law declaration.
In response to the unfolding situation, South Korea’s Central Bank has stated it will not hesitate to provide unlimited liquidity to the markets if necessary. This announcement comes just days after the Central Bank lowered interest rates in an effort to stimulate the country’s struggling economy.
