Bitcoin Recovers After Declaring Martial Law in South Korea

BTC Overcomes Decline Due to Martial Law Declaration in South Korea
Cryptocurrency Market Recovered the Similar Price as Yesterday
Korean Stocks Listed in the U.S. Drop by the Martial Law Declaration
Expert "The Incident of Dec. 3 Proves Investor Demand Toward BTC"

On Dec. 4, the cryptocurrency market including Bitcoin(BTC), overcame the plunge that occurred the night before and recovered to the same price range as the previous day.

At 10 p.m. on Dec. 3, President Yoon Suk Yeol declared an emergency martial law through an emergency statement from the presidential office in Yongsan. The Korean cryptocurrency market is facing panic, and Korean investors are falling into panic sells and selling cryptocurrency with great momentum.

The panic sells 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 plunging about 30%.

President Yoon announced the lifting of the emergency martial law at 4:27 a.m. on Dec. 4. The cryptocurrency market, which had been in a mixed state after a sharp drop due to the selling of Korean cryptocurrency investors, gradually recovered and recovered to the price range of the same time on the 4th.

Even Tron(TRX) broke a new high, hitting $0.41. In the process of transferring cryptocurrencies that South Korean investors had deposited on the South Korean cryptocurrency exchanges to overseas exchanges, Tron Network(TRC-20) was the only one operating, and the trading volume of TRC-20 surged about 500% compared to the average, which led to the rise of native token TRX.

The stock prices of Korean companies in the U.S. stock market fell due to the emergency martial law that occurred in South Korea. When President Yoon declared an emergency martial law, the stock prices of Korean companies listed on the U.S. stock market plunged, and when news of the lifting of the emergency martial law spread, the stock prices of those companies declined.

Coupang, which plunged 6% during the day, fell 3.74% from the previous day. Korean architectural media company CAPTIVISION plunged 10.93%. KT and POSCO fell 0.44% and 4.36%, respectively.

The Korea Exchange Traded Fund(ETF) listed on the U.S. stock market also fell about 1.59% from the previous day.

◇Bitcoin = Bitcoin price is $96,565 at 4:30 p.m. on Dec. 4, 2024.The Bitcoin share (dominance) was 55.18%.

The long(up) and short(down) betting ratios in the Bitcoin futures market stood at 50.87% and 49.13%, according to the on-chain analytics platform Sigbtc.

As Bitcoin recovered its price even though it plunged 30% late at night on the 3rd, the assessment that it proved the demand for Bitcoin was dominant both inside and outside the market.

Bitcoin's plunge is due to South Korean cryptocurrency exchanges failing to process all of their sharp purchase orders despite buying following a sharp sell-off, analysts said.

Lim Min-ho, a researcher at Shinyoung Securities, said in an interview with Yonhap News, "There was a problem with accessing the exchange app as the trading volume suddenly increased while the investment sentiment was unstable due to the emergency martial law."

◇Upside Coin = The cryptocurrency that recorded the largest increase from the previous trading day at 4:30 p.m. on Dec. 4 was Iota(IOTA), which rose about 17%.

Iota is a project that permits various activities through various electronic and communication devices in living spaces such as offices and homes based on the Internet of Things platform.

IOTA uses its own algorithm called "Tangle." Tangle is considered suitable for the Internet of Things because it has no transaction fees and has the advantage of being able to handle many transactions quickly.

Tangle is a platform with a new structure created by developing blockchain, and the more transactions there are, the higher the network security and the greater the scalability. In addition, since it is a structure that does not require a miner, there is no payment fee, so small payments can be efficiently applied to the Internet of Things field.

◇Fear Greed Index = The cryptocurrency fear-greed index provided by Alternative has entered the 'Greed' phase with 78 points. The Greed phase is a phase where price volatility and trading volume increase, and the price increases. As it is highly likely to form a short-term high, caution should be taken in selling.

The cryptocurrency relative strength index(RSI) provided by Sigbit was 52.7, which was in a 'Neutral' state. RSI sets the relative strength between the upward and downward pressure of a particular asset price and is an indicator of a measure of over-purchasing and over-selling of a particular asset.

권승원 기자 ksw@blockstreet.co.kr