Crypto Market Recovers After South Korea Reverses Martial Law Declaration

The cryptocurrency market regained some stability following the reversal of a martial law declaration by South Korean President Yoon Suk-yeol, who had imposed the emergency measure on December 5. Less than six hours after the initial declaration, the president lifted the martial law after a vote by South Korea's National Assembly rejected it.

Martial Law Lifted After Parliament's Rejection

The decision to reverse the martial law was announced at approximately 4:30 AM local time during a Cabinet meeting. Around 190 members of the 300-member National Assembly voted to oppose the measure, prompting President Yoon to accept the parliament's decision.

“I will accept National Assembly’s request and lift it,” Yoon said in a statement, as reported by The Washington Post. According to South Korean law, the government is required to lift martial law if the majority of parliament demands it.

Initial Shock and Market Impact

Yoon’s unexpected live television announcement of martial law caused global alarm, drawing attention from the international community, including a statement from the White House, which expressed serious concern over the developments. The declaration was made in response to what Yoon described as “threats posed by North Korea’s communist forces” and the need to “eliminate anti-state elements.”

The martial law declaration led to an immediate market downturn, with major cryptocurrencies like Bitcoin (BTC), Ether (ETH), and XRP experiencing sharp price drops. However, as news of the reversal spread, the market began to recover. Bitcoin saw a 2.4% bounce, Ether rose by 3.3%, and XRP surged by 9.2%, according to CoinMarketCap data.

Global Reactions and Crypto Trading Volumes

The White House welcomed the reversal of the martial law declaration, with a spokesperson saying, “We are relieved President Yoon has reversed course on his concerning declaration of martial law and respected the ROK National Assembly’s vote to end it.”

Despite the turmoil, South Korea’s retail crypto trading volumes remained robust. On December 2, the country saw its second-highest trading volume of the year, driven by heightened interest in “high momentum” altcoins. XRP led the trading frenzy, with over $6.3 billion in volume, followed by Dogecoin (DOGE) at $1.6 billion, Stellar (XLM) at $1.3 billion, and Ethereum Name Service (ENS) at $900 million. Hedera (HBAR) also saw significant activity with $800 million in trades.

Conclusion

South Korea’s swift reversal of martial law helped stabilize the global cryptocurrency market, which had initially experienced significant volatility following the emergency declaration. While geopolitical tensions remain high, the market's resilience suggests a strong appetite for digital assets in the region, particularly in altcoins. With retail trading volumes surging, South Korea continues to be a key player in the global crypto landscape.