South Korea’s cryptocurrency market witnessed a historic crash after President Yoon Suk Yeol declared martial law late Tuesday, citing national security threats. This marked the nation’s first martial law declaration since 1980, reigniting fears of authoritarianism among citizens and investors.

Bitcoin Drops 30% as Investors Panic

The announcement triggered a swift and severe sell-off across crypto exchanges. On Upbit, South Korea’s largest crypto trading platform, Bitcoin plunged by 30%, while popular altcoins like XRP, Dogecoin, and XLM suffered losses of up to 20%. The sharp downturn reflects growing anxiety over political instability and its economic ripple effects.

President Yoon’s decision came during a surprise late-night address, citing alleged anti-state activities by opposition groups. The declaration spurred immediate protests, with crowds gathering outside the National Assembly, where troops attempted to enter the main hall. Many South Koreans are reminded of the authoritarian measures of the past, fueling widespread unrest.

Crypto Whales Seize Buying Opportunity

While retail investors raced to sell and withdraw funds, crypto whales took advantage of the discounted prices. According to blockchain tracker Lookonchain, $163 million USDT was moved to Upbit by large-scale investors aiming to buy assets during the dip. This strategic buying amid the chaos underscores the stark contrast between panic-driven selling and calculated investment moves.

The surge in trading activity overwhelmed Upbit’s platform, forcing the exchange to suspend its open API services due to technical issues. The move added further tension for users already grappling with volatile price swings.

Central Bank Intervenes to Reassure Markets

To address growing economic uncertainty, South Korea’s Central Bank announced plans to provide unlimited liquidity if necessary. This follows a recent interest rate cut intended to support the economy, signaling the government’s commitment to stabilizing financial markets.

Parliament retains the authority to overturn the martial law declaration, leaving the nation’s political and financial future hanging in the balance. As of now, Bitcoin is trading at $95,851.04, showing signs of stabilization after the initial shock.

The unfolding crisis has highlighted the fragility of South Korea’s crypto market, with political turmoil acting as a powerful force influencing investor confidence.