- South Korea's crypto market collapsed after martial law was declared, with bitcoin falling 30% on Upbit.
- Crypto whales took advantage of the market panic, moving US$163 million to grab the discounted assets.
South Korea's cryptocurrency market saw a massive decline after President Yoon Suk Yeol declared martial law, citing national security concerns. This development is in line with a recent FCEN update which highlighted that South Korea recognizes cryptocurrencies as marital property in divorce settlements.
The announcement triggered widespread panic among investors, leading to massive selling. As confirmed by a CNN World update, the political situation in South Korea has intensified:
Mr. Yoon declared martial law in a surprise speech late Tuesday, reviving memories of a painful and authoritarian past. Troops attempted to enter the main hall of the National Assembly, while protesters gathered outside to oppose the measure.
Subsequently, bitcoin fell by 30% on the Upbit exchange, while major altcoins like XRP, Dogecoin, and XLM saw price drops of up to 20%. This is the first declaration of martial law since 1980, aimed at combating the opposition's alleged anti-state activities.
Whales target opportunities amid market turbulence
As retail investors rushed to cash out their funds, some crypto whales viewed the market collapse as an opportunity. According to Lookonchain, whales moved over $163 million in USDT to Upbit, intending to take advantage of the discounted prices.
This standoff between panicked sellers and strategic buyers caused a surge in traffic on the platform, prompting Upbit to temporarily suspend its open API services due to technical delays.
The central bank intervenes to stabilize the markets
In response to economic instability, South Korea's central bank has pledged to provide unlimited liquidity if necessary. The announcement follows a recent interest rate cut intended to stimulate the economy.
Despite the current unrest, Parliament has the power to overturn the declaration of martial law, adding a layer of uncertainty to the country's financial and political landscape. Currently, bitcoin (BTC) is trading at 95 851,04 $which represents a daily drop of 0,17 %but a weekly increase of 3,59 %.
