Bitcoin Plummet from $95k to $71k on Upbit Following South Korea Martial Law Declaration
Bitcoin plunge on Upbit and President Yoon cited threats from North Korea and the actions of the Democratic Party as justification for this drastic measure,
Bitcoin (BTC) Plunged from $95k to $71k on Upbit following the abrupt declaration of martial law by South Korean President Yoon Suk Yeol on Tuesday, December 3rd, 2024.
Additionally, the President cited threats from North Korea and the actions of the Democratic Party as justification for this drastic measure, however, the martial call rained panic upon Upbit users leaving many of the exchange cryptocurrencies to drastically plunge.
President Yoon’s announcement framed the martial law declaration as a necessary step to safeguard national security and quell perceived threats to the stability of the Republic of Korea.
Moreover, he explicitly referenced actions by “anti-state elements” and the need to prevent further unrest. His statement pledging to “rebuild and protect the free Republic of Korea,” which he described as “falling into the depths of national ruin,” underscored the gravity of the situation. This rhetoric, coupled with the unexpected nature of the announcement, fueled widespread panic among the populace.
Upbit Exchange Suffered Massive Impact
Within minutes, Upbit, South Korea’s largest cryptocurrency exchange, showed an immediate and visceral reaction. Bitcoin, already trading at a high of approximately $95,800, plummeted by 27% to $71,800 within a matter of minutes.
Notably, the plunge represented a staggering loss in value, particularly when considering the price in South Korean won, which experienced an even sharper decline of approximately 33%, falling from ₩132,429,000 to ₩88,266,000 before a partial recovery.
The volatility wasn’t limited to Bitcoin; other major cryptocurrencies, including Ethereum and XRP, also suffered significant losses, with declines as steep as 35% and 51% respectively. The sheer speed and scale of the downturn paralyzed several exchanges, leading to temporary service disruptions on Upbit and Bithumb.
The unusual decline combined with the South Korean won’s depreciation against the US dollar (approximately 3%), paints a picture of widespread capital flight and a market overwhelmed by risk aversion. The connection between President Yoon’s actions and the crypto market crash is undeniable, though the exact causal mechanisms remain complex.
Nonetheless, the immediate panic triggered by the announcement of martial law created a perfect storm for a dramatic sell-off. The perceived threat to the stability of the South Korean government directly impacted investor confidence, leading to a rapid liquidation of assets.
