Originally published on: December 03, 2024
In a surprise move, South Korea’s President Yoon Suk Yeol reversed his declaration of martial law just hours after imposing it, causing the cryptocurrency market to regain its footing. The decision to lift the declaration came during a Cabinet meeting, following a vote by parliament rejecting the martial law order.
Yoon stated, “I will accept National Assembly’s request and lift it,” signaling a victory for the majority of lawmakers who opposed the martial law. The sudden declaration had sent shockwaves across the global stage, with the White House expressing serious concern over the developments in South Korea.
The initial announcement of martial law, made on live television, was justified by Yoon as a response to threats from North Korea and to eliminate anti-state elements. However, following the backlash and pressure from parliament, Yoon decided to retract the declaration to uphold the freedom and safety of the people.
Cryptocurrencies like Bitcoin, Ether, and XRP had experienced a dip in prices following the emergency declaration but have since recovered, with gains ranging from 2.4% to 9.2%. The reversal of martial law was met with relief by the White House, further stabilizing the market sentiment.
Just a day before the martial law announcement, South Korea had recorded its second-highest retail crypto trading volumes of the year, driven by high momentum altcoins. XRP, Dogecoin, Stellar, Ethereum Name Service, and Hedera were among the top-traded cryptocurrencies, indicating a strong interest in the market.
As South Korea navigates through these developments, investors and traders are keeping a close eye on the evolving situation and its impact on the cryptocurrency market. Stay informed with critical insights and investment opportunities by subscribing to the Markets Outlook newsletter.
