Cryptocurrency Recovers After Plunging by South Korean Presidential Martial Law Declaration

At 10 p.m.,President Yoon Declared an Emergency Decree...'Panic Selling'
BTC Suddnely Down 30% On Dec.3 Night...Altcoin Plunges More Than 40%
'Kimchi Premium' Recorded '-40%'...$121 Million Liquidated at Futures Market
Cryptocurrency Recovers to Dec. 3's Price by Lifting Emergency Martial Law

The cryptocurrency market, which had plunged due to the declaration of an emergency martial law by South Korean President Yoon Suk Yeol, began to recover on Dec. 4 after the emergency martial law was lifted.

President Yoon Suk Yeol said in an emergency statement at the presidential office in Yongsan at 10 p.m. on Dec. 3, "We declare an emergency martial law to protect the free Republic of Korea." The Korean cryptocurrency market faces panic over President Yoon's declaration of an emergency martial law, and investors in the Republic of Korea fell into "panic sells" and sold cryptocurrency with great momentum.

The panic cells of South Korean investors led to the paralysis of Upbit and Bithumb, South Korea's major cryptocurrency exchanges, and the majority of altcoins plunged more than 40%, including Bitcoin(BTC) plunging about 30%.

At 11 p.m. on Dec. 3, Bitcoin recorded $66,000, including Ripple(XRP) of $1.16 and many major altcoins listed on the Korea Exchange also recorded a significant decline of 40%.

As South Korean investors sold cryptocurrencies amid fear, a 'reverse kimchi premium' occurred, in which South Korea's bitcoin price was set low. On Dec. 3, the 'Kimchi premium' recorded up to -40%.

The futures market also reacted greatly to the sharp sell-off by Korean investors and the resulting market plunge. At 12 a.m. on Dec. 3, the liquidation of the cryptocurrency futures market reached about $121 million in an hour. In particular, Bitcoin and Ripple's outstanding settlement in the futures market reached $52.78 million.

President Yoon decided to lift the emergency martial law approved by the National Assembly through a Cabinet meeting on Dec. 4 in the morning and lifted the emergency martial law. When the emergency martial law was lifted in about six hours, the cryptocurrency market entered a rapid recovery, and most cryptocurrencies recovered at a price similar to that of the morning of the 3rd.

The Price of Bitcoin and XRP is trading at $95,684 and $2.54 respectively as of 9 a.m. on Dec. 4.

권승원 기자 ksw@blockstreet.co.kr