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Recent political developments in the US pushed crypto
market to unprecedent levels with Bitcoin recently reaching an all-time-high of
$99K. However, the developing political chaos in South Korea is reversing some of these gains.
The country plunged into political chaos today (Tuesday)
when President Yoon Suk Yeol declared emergency martial law. The Head of state
accused the opposition Democratic Party of Korea (DPK) of plotting rebellion
and undermining the nation’s government, the Korea Times reported.
Bitcoin and XRP Prices Affected
This extraordinary decision has escalated tensions in
the country’s already polarized political landscape while triggering shockwaves
in cryptocurrency prices, especially among the region’s exchanges.
At the time of publication, XRP was down 12% in the
past day to trade at $2.45, according to CoinMarketCap. This is despite the
crypto, now ranked 3rd with a market cap of $139 billion, soaring
100% in the weekly chart.
The political developments have also affected the leading
cryptocurrencies with most tokens now flashing red lights. Bitcoin is down 1.555
in the past day to $95k, while Ethereum has also dropped nearly 3%.
In a televised address, Yoon accused the opposition of
paralyzing the government through anti-state activities and described the
declaration of martial law as essential to safeguarding the nation’s democratic
foundations.
According to Yoon, this initiative is aimed at
eradicating pro-North Korean forces and protecting the constitutional order of
freedom. Bitcoin and XRP saw sharp, two of the recent top performers in the sector,
temporarily declined up to 30% on South Korean exchanges like Upbit, Coindesk
reported.
Trading volumes on local platforms, which often rival
global giants such as Binance and Coinbase, surged as traders reacted to the
news. Upbit and Bithumb, two of South Korea’s largest
cryptocurrency exchanges, issued notices warning users about delayed site
performance due to the spike in activity.
BREAKING: South Korean President declares martial law to combat “threats posed by North Korea’s communist forces.”Follow: https://t.co/K4CZegQvjX pic.twitter.com/t0f81uv3Vm
— DW News (@dwnews) December 3, 2024
Political Uncertainty in South Korea
The tipping point reportedly came when the DPK pushed
through a downsized budget bill and initiated impeachment motions against
senior government officials, including the state auditor and the chief
prosecutor.
Yoon further reportedly accused the DPK of shielding
its leader, Lee Jae-myung, from ongoing criminal trials. Under South Korea’s constitution, martial law reportedly
grants the president sweeping powers, including the ability to restrict
freedoms such as press, assembly, and judicial independence.
The DPK, which holds a majority in the 300-seat
National Assembly, could technically terminate martial law through a vote.
However, access to the assembly was reportedly blocked shortly after Yoon’s
declaration, preventing immediate action.
This article was written by Jared Kirui at www.financemagnates.com.
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