Martial law announcement triggered a 30% dip in Bitcoin and XRP prices on South Korean exchanges.

Late Tuesday evening, South Korean President Yoon Suk Yeol declared “emergency martial law,” which led to a dramatic reaction in the local cryptocurrency market. The government accused opposition parties of destabilizing the country, sympathizing with North Korea, and obstructing the legislative process.

Following the announcement, major cryptocurrencies such as Bitcoin and XRP saw sharp declines of up to 30% on South Korean exchanges. Bitcoin, for example, dropped from $96,000 to $63,000 in U.S. dollar terms on Upbit, before making a rapid recovery.

South Korean traders are known for driving significant market rallies, often pushing prices higher through buying pressure, and their activity is believed to influence global price movements. Local exchanges like Upbit and Bithumb, where trading volumes often surpass those of international platforms like Binance and Coinbase, are central to this trend.

After the martial law declaration, both Upbit and Bithumb experienced a surge in user activity, leading to temporary delays in site feeds and performance, according to notices issued by the exchanges.