Summary: Bitcoin is having a heck of a great time worldwide except for South Korea as its valuation took a nosedive after a shocking and drastic martial law announcement, leaving traders scrambling as chaos rocked the markets. Here’s what went down and how the market bounced back.
Martial Law Sends Shockwaves
On December 3, Bitcoin prices on South Korea’s Upbit exchange tanked to 92 million won (~$65,000), a staggering $30,000 below global rates. The crash came moments after President Yoon Suk Yeol dropped a bombshell on live TV, declaring martial law to “eliminate anti-state elements.” The drastic announcement was meant to address perceived threats from North Korea but instead triggered financial panic, with crypto markets bearing the brunt of the chaos.
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Liquidity? Poof, It’s Gone
Traders were left in shock as the market spiraled. A crypto analyst, Ltrd, explained the meltdown: “Everyone just dipped. The market had no buyers left.” With liquidity providers pulling out, a 10% price spread appeared, exposing how fragile South Korea’s crypto market really is. Unlike global markets, South Korea’s exchange ecosystem is tightly controlled, making it ridiculously hard for new players to jump in. This made the crash even worse as sell orders piled up, and there weren’t enough buyers to stabilize prices.
The Bounce Back
But here’s the plot twist: South Korea’s parliament wasn’t having it. Just hours later, lawmakers voted unanimously to cancel the martial law order, and President Yoon gave in. The calm returned fast, with Bitcoin prices rebounding to 135 million won (~$95,000) by day’s end. While the market recovered, the episode highlighted how thin liquidity and sudden political moves can shake even a giant like Bitcoin.
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