Trigger for Crypto Market Crash in South Korea: Military Emergency Regulations Make Bitcoin and Altcoins Fall

2024-12-04

Pemicu Market Crypto Crash di Korea Selatan Aturan Darurat Militer Bikin Bitcoin dan Altcoin Anjlok

BittimeOn December 3 2024, South Korea was shocked by President Yoon Suk Yeol's sudden decision to announce the implementation of martial law. This decision sparked great concern, not only among the public, but also in the crypto market. 

Within hours of the announcement, the price of Bitcoin and other altcoins immediately fell drastically. How can such a big political decision cause crypto prices to plummet? Come on, let's see more.

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Martial Law Rules and Their Impact on Crypto Markets

You definitely know, in the crypto market, prices can change very quickly. As soon as the emergency regulations were announced, the market in South Korea was immediately hit. On Upbit, the country's largest crypto trading platform, Bitcoin prices plunged more than 30% in a short period of time, touching around $62,000. 

Ironically, the price of Bitcoin on international exchanges actually remains higher at around $4,000, creating an arbitrage opportunity for astute investors.

However, it wasn't just Bitcoin that fell. Altcoins such as XRP, Dogecoin, and XLM also recorded price drops of up to 20%. The market was filled with anxiety, with many investors starting to panic and selling off their assets. 

However, there are also large investors or "whales" who actually see this decline as an opportunity to buy more crypto.

Read Also: What is XRP Coin: Definition, History, and Differences from Ripple

Panic Sellers vs. Bottom Fishermen

When the market is depressed, two types of investors emerge. There are those who immediately sell assets because they panic (panic sellers), and there are also those who remain calm, waiting for the price to fall further to buy at a lower price (bottom fishermen). 

This is what happened at Upbit. With a very high spike in transaction volume, this platform experienced technical problems, and the application and API were inaccessible.

In the midst of this tension, some "whales" actually took the opportunity to accumulate more crypto. They transfer funds in USDT to Upbit, hoping to buy Bitcoin or altcoins at a lower price. This shows that despite market volatility, there are opportunities that can be exploited by those willing to take the risk.

The Impact of Politics on the Economy and Crypto

The decision to implement martial law rules not only has an impact on the crypto market, but also on the South Korean economy as a whole. South Korean stocks plunged immediately, with ETFs like the iShares MSCI South Korea ETF losing more than 5%. In addition, the won currency also weakened against the US dollar, adding to feelings of anxiety among local investors.

This sudden political uncertainty is creating tension in financial markets, both traditional and crypto. Many investors are starting to hesitate and choose to wait before making further investment decisions. However, for those who see an opportunity, this could be a golden opportunity to buy crypto at a more affordable price.

Read Also: 5 Main Causes of the Increase in XRP Prices that are Currently in the Spotlight

Lessons from This Incident

This incident teaches us that the crypto market is not only influenced by technical factors and market analysis. Political decisions that appear to have nothing to do with crypto can change the direction of the market dramatically. In this highly volatile world, political uncertainty can be a big trigger for price movements.

The incident in South Korea also shows how important mental preparedness is in dealing with sharp price fluctuations. The crypto market is full of risks, but it is also full of opportunities—depending on how we see and take advantage of the current situation.

Conclusion

President Yoon's imposition of martial law has shaken the crypto market in South Korea. Bitcoin and altcoin prices have plummeted, but this has also opened up opportunities for those ready to buy at low prices. 

What is happening in the crypto market reminds us that the digital world cannot be separated from the influence of political conditions in the real world. When uncertainty comes, the crypto market will always be volatile—and only those who are ready to adapt can take advantage of it.

FAQ Market Crypto

What caused crypto prices to drop drastically?

Crypto prices can fall due to external factors such as government policies, political uncertainty, or major changes in the global economy.

What are "whales" in the crypto market?

“Whales” are large investors who hold significant amounts of crypto and can influence market prices with large transactions.

Are crypto markets influenced by traditional markets?

Yes, the crypto market can be affected by traditional market conditions, such as stock or currency price fluctuations that create uncertainty.
 

How to Buy Crypto with Bittime

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Want to trade sell buy Bitcoins and crypto investment easily? Bittime is here to help! As an Indonesian crypto exchange officially registered with Bappebti, Bittime ensures every transaction is safe and fast.

Start with registration and identity verification, then make a minimum deposit of IDR 10,000. After that, you can immediately buy your favorite digital assets!

Check the exchange rate BTC to IDR, ETH to IDR, SOL to IDR and other crypto assets to find out today's crypto market trends in real-time on Bittime.

Additionally, visit Bittime Blog to get various interesting updates and educational information about the world of crypto. Find trusted articles about Web3, blockchain technology, and digital asset investment tips designed to enrich your knowledge in the world of crypto.
 

Reference

Bhavsar, Jalpa, Crypto Market Crash in South Korea After Martial Law Declaration, accessed December 4, 2024.

 

Binance, South Korean Crypto Markets Crash Following President’s Martial Law Declaration, accessed December 4, 2024.

 

Author: MF

 

Disclaimer: The views expressed belong exclusively to the author and do not reflect the views of this platform. This platform and its affiliates disclaim any responsibility for the accuracy or suitability of the information provided. It is for informational purposes only and not intended as financial or investment advice.

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