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The declaration of martial law by South Korean President Yoon Suk-yeol has not only shaken the political and economic balance in the country, but also deeply affected the cryptocurrency markets. Economic uncertainty prompted investors to quickly liquidate their holdings, while crypto exchanges recorded record trading volumes. This development brought South Korea’s pioneering role in cryptocurrency markets to the fore once again.
Crypto Trading Volume Hits Record High
Following the imposition of martial law, cryptocurrency exchanges in South Korea saw their trading volume surge to an all-time high of $34 billion in the past 24 hours. Compared to the previous day’s $18 billion volume, it is evident that much of this increase stemmed from a wave of panic selling. Upbit solidified its dominance during this period, accounting for $27.2 billion of the total volume. However, this surge was primarily driven by selling pressure, as investors rushed to liquidate their crypto assets amid economic uncertainty.
As a result of these developments, Bitcoin experienced a sharp decline against the South Korean won, dropping to as low as $62,000. Losses in altcoins were even more severe—Dogecoin, for example, plummeted by as much as 50% in its won trading pair. This situation has heightened investor concerns and further fueled market volatility.
Withdrawal of Martial Law Decree
President Yoon Suk-yeol’s decision to impose martial law reverberated widely in South Korea’s political arena. Following a strong reaction from opposition parties and public opinion, the decision was rejected in a parliamentary vote. As a result, Yoon was forced to withdraw the declaration of martial law. However, the opposition stated that this situation created a political crisis and announced that they were preparing to file a lawsuit for Yoon’s dismissal.
At a time of such high political tension, the country’s traditional financial markets were also affected. The South Korean stock market started the day with a 2% drop when it reopened, but trading continued smoothly.
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