Key Takeaways:
- South Korea’s President Yoon Suk Yeol lifted martial law just six hours after its imposition, following a parliamentary rejection of the measure.
- The reversal helped crypto markets rebound, with Bitcoin up 2.4%, Ethereum up 3.3%, and XRP surging 9.2%.
- South Korea’s crypto trading volumes surged, with XRP leading at $6.3 billion, amid heightened interest in altcoins.
The cryptocurrency market rebounded after South Korean President Yoon Suk Yeol lifted martial law just six hours after declaring it.
The reversal occurred during a Cabinet meeting following a decisive parliamentary vote, with 190 of 300 lawmakers rejecting the measure.
Cryptocurrencies saw few gains on Tuesday, while price swings surged on Asian exchanges after South Korean President Yoon Suk Yeol declared martial law https://t.co/BK2kwVzj2s
— Bloomberg Crypto (@crypto) December 3, 2024
Under South Korean law, martial law must be revoked if parliament opposes it.
President Yoon initially justified the declaration by citing threats from North Korea and “anti-state elements”, but reversed course, stating he would honor the National Assembly’s request.
The initial declaration caused significant unease globally, with the White House expressing “serious concern”.
Cryptocurrency markets reacted sharply, with prices plummeting after the announcement.
However, the market began to recover once martial law was lifted.
Bitcoin (BTC) rose 2.4%, Ethereum (ETH) gained 3.3%, and XRP surged by 9.2%, reflecting renewed investor confidence.
The geopolitical turbulence coincided with a major trading day in South Korea’s crypto markets, where retail volumes reached their second-highest level in 2023.
XRP led trading with $6.3 billion in volume, followed by Dogecoin (DOGE), Stellar (XLM), Ethereum Name Service (ENS), and Hedera (HBAR).
The swift political resolution highlights the strong interplay between geopolitical events and cryptocurrency market dynamics.
About The Author
Adam Morris, the co-founder of Crypto Head and a respected crypto expert, offers insightful commentary and analysis on cryptocurrency, NFTs, and the evolving digital landscape.
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