last tuesday, South Korean President Yoon Suk-yeol It surprised the country by declaring martial law. The president’s surprise announcement, which was later retracted, created political chaos and rattled markets.
South Korea The stock market fell In morning trading on Wednesday, the Kospi fell 2% as a result of the turmoil. Even before the markets opened, the country’s Deputy Minister of Economy and Finance stated that the government was ready to pump nearly $7 billion to stabilize the market.
As key Kospi shares fell, SoKor’s cryptocurrency trading volume rose to $34.2 billion across popular exchanges such as Bithumb, Upbit, Gopax, and Korbit. Upbit processed most of the cryptocurrency transactions worth $27.25 billion, underscoring its dominance in the country’s cryptocurrency market.
Bitcoin price Cryptocurrency exchanges in Korea also declined briefly due to a lack of liquidity, highlighting the weakness of the country’s cryptocurrency market.
Volatile trading session
South Korean stocks responded negatively to the president’s volatility. The country’s Vice President for Economy and Finance announced that the administration is ready to deploy up to $7 billion to address the potential Market chaos.
In Wednesday’s trading, popular stocks in the country, such as Samsung and LG Energ Solution, fell by 1% and 2.8%, respectively.
The country’s cryptocurrency market also saw a surge in activities, nearly doubling the record $18 billion hit on December 2. According to a South Korean cryptocurrency news outlet KW NewsThis was the highest single-day cryptocurrency trading total of the year.
BREAKING: South Korea’s parliament votes 190 to 0 to lift martial law pic.twitter.com/08Sf0HHZ0C
– BNO News (BNONews) December 3, 2024
Martial law is wreaking havoc on the cryptocurrency market
the Crypto sector in the country She also reacted negatively to the political chaos last Tuesday. During the 6-hour martial law, the price of Bitcoin fell to 88 million won or US$62,182 on popular cryptocurrency exchanges, reflecting heavy selling. As many coin holders and traders panicked to sell Bitcoin and cryptocurrencies, some exchanges experienced service outages.
Just hours after declaring martial law, the president immediately rescinded the order, which helped stabilize markets. The country’s opposition immediately sprang into action and brought charges of treason against the president, with some campaigning for his impeachment.
Political instability in South Korea could affect liquidity
Although the price of Bitcoin and the overall cryptocurrency market were stable on Wednesday, the political crisis highlighted the vulnerability of the country’s markets to liquidity shocks. Any political instability, such as the declaration of martial law, could affect cryptocurrency prices.
The political drama in South Korea has also attracted the attention of cryptocurrency betting markets and cryptocurrency commentators. At Polymarket, the odds of betting $500,000 on President Yoon’s early exit reached 78% before settling at 47%.
Featured image from Pexels, chart from TradingView
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