In South Korea on December 4, 2024, President Yoon Suk-yeol's declaration of emergency martial law triggered a dramatic sell-off in cryptocurrencies, with Bitcoin plummeting over 30% in local exchanges before recovering. The announcement led to panic among investors, causing Bitcoin's price to drop from approximately 132 million KRW (around $92,000) to as low as 88.26 million KRW (about $62,000) on Upbit, the country's largest crypto exchange. Globally, Bitcoin fell below the $94,000 mark before rebounding to the $95,000-$96,000 range.
The martial law, declared for the first time in 44 years, aimed to address perceived threats from North Korean forces, but was lifted within six hours after a parliamentary vote rejected it. Following the reversal, Bitcoin was trading at 133.2 million KRW on Upbit. This swift political turmoil has raised concerns internationally, prompting responses from entities including the White House, which expressed serious concern over the developments.
The situation underscores the volatility of the cryptocurrency market, particularly in response to political events. The brief but severe market reaction illustrates the sensitivity of crypto prices to geopolitical instability.