Bitcoin (BTC) Crashes 33% In South Korea Amid Increasing Political Turmoil

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As a seasoned crypto investor with a keen interest in global market trends, I’ve witnessed my fair share of volatility in the digital asset space. The recent events unfolding in South Korea have served as a stark reminder that even the most stable markets can be affected by geopolitical uncertainties.

The price of Bitcoin (BTC) has significantly dropped in South Korean exchanges due to the escalating political tension within the country. This decline occurred after the President made an announcement, causing a quick selling spree that lowered the value of BTC and other cryptocurrencies by more than 30%.

South Korea Declares First Martial Law In 44 Years

Last Tuesday evening, South Korea’s President Yoon Suk Yeol announced a “martial law emergency” – a move unseen in 44 years. This news sparked fear among the Korean populace and led to a rapid selling off of Bitcoin and other digital currencies.

According to the JoongAng Daily from Korea, announcing martial law means transferring power from civil government to military rule, and temporarily putting aside civil laws in favor of military authority.

Furthermore, it provides means such as limiting expressions of free speech, publishing content, gathering publicly, and forming groups, alterations in governmental or judicial power, and a legal framework for warrants.

However, should the parliament ask for the removal of martial law, provided that most of its members agree, it is the duty of the president to comply with this request.

During a live broadcast, President Yoon declared that the action was initiated as a means to “eliminate supporters of North Korea and safeguard our democratic constitutional system.” He alleged that the country’s political opposition harbors sympathy towards North Korea and engages in activities detrimental to the state.

It’s important to mention that the Democratic Party holds a majority in South Korea’s parliament, which appears to have made it more challenging for President Yoon to advance his plans. In a recent statement, President Yoon didn’t propose any specific actions, but instead referred to the opposition’s motion to impeach key prosecutors and their rejection of the government’s budget proposal.

As a devoted crypto investor, I am committed to restoring and safeguarding the prosperity of South Korea, currently grappling with economic turmoil. My goal is to swiftly dismantle any elements opposing the state’s ideals and restore stability within our borders. In doing so, I aim to bring about a new era of growth and prosperity for all citizens.

Leader of the Democratic Party, Lee Jae-Myung, disclosed their intention to countermand Yoon’s decree, yet voiced apprehension about potential actions from the military towards parliamentary members.

Bitcoin And XRP See Negative Kimchi Premium

After catching up with the latest updates, it appears that the value of Bitcoin plummeted by approximately 27% when compared to the South Korean Won (KRW) within domestic cryptocurrency markets, specifically on Upbit, South Korea’s leading crypto exchange.

Originally priced at approximately 132 million Korean Won (KRW), equivalent to $92,000, the leading cryptocurrency plummeted to as low as 88.26 million KRW ($62,000). Yet, it has bounced back from its steep decline and is currently trading above its initial value once more.

Meanwhile, Bitcoin experienced a decline in price across various international exchanges, briefly dipping under the $94,000 threshold. However, it quickly rebounded and settled within the $95,000 to $96,000 range on trading platforms such as Binance, ByBit, and OKX.

Just like that, Ripple‘s value dropped by approximately 60% from its peak of about 4,000 KRW to a low of 1,623 KRW, equivalent to around $1.23. However, it has since bounced back in the past hour, currently trading at roughly 3,600 KRW, which is worth around $2.52.

As per Wu Blockchain’s explanation, the “Kimchi Premium” – a phenomenon where cryptocurrency prices are higher in South Korea compared to other markets – is due to the absence of institutional market makers on Korean exchanges. This, combined with heavy trading activity, has made it difficult for prices to align quickly across various markets.

Initially, it was concluded from recent updates that the Parliament successfully overturned martial law through a vote, effectively ending it after a span of three hours. Currently, Bitcoin is being transacted at approximately 133.2 million KWR on the platform, Upbit.

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2024-12-03 21:05