Bitcoin price in South Korea took a massive hit on December 3 after President Yoon Suk Yeol declared martial law. During a live televised address, Yoon announced the order to “eliminate anti-state elements” and tackle perceived threats from North Korea’s communist forces.
Almost immediately, the price of Bitcoin on the South Korean exchange Upbit dropped to 92 million won ((approximately $65,000), marking a $30,000 plunge compared to global prices.
The sudden drop shocked traders, with one analyst, known as Ltrd, describing it as a “disappearance of liquidity.” According to him, the crash occurred because key players left the market following the announcement.
“All the players just disappeared from the market,” he explained in a post on X, formerly Twitter. This left an imbalance between buyers and sellers, resulting in a 10% spread on Bitcoin trades.
South Korea’s crypto market is already known for being hard to access. Ltrd pointed out that only a small number of players provide liquidity and stabilize prices in the country. “It is shockingly hard to enter the Korean market and trade there,” Ltrd wrote. This limitation made the market especially vulnerable when major traders pulled out during the crisis.
Adding to the chaos, sell orders flooded the market, causing even more pressure on Bitcoin’s price. Ltrd noted that with more liquidity providers, the situation would have been less severe. Despite the dramatic fall, some observers believed the market had overreacted to the announcement.
Just hours later, tensions eased when South Korea’s parliament voted 190-0 to nullify the martial law order. President Yoon accepted the decision, and the market quickly began to recover. By the end of the day, Bitcoin prices on Upbit had rebounded to 135 million won, approximately $95,000.
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