Cryptocurrencies Recover After Last Night's Plunge as South Korean President Declares Martial Law

President Yoon declares martial law around 10 PM... Korean investors panic sell
BTC drops 30% on the 3rd around 3 PM... Altcoins plunge over 40%
Korean 'kimchi premium' records -40%... Futures market liquidation reaches 171.1 billion won
Cryptocurrencies recover to previous day's prices after martial law is lifted

The cryptocurrency market, which had plunged due to President Yoon Seok-yeol of the Republic of Korea's declaration of martial law, began to recover on the 4th day after the lifting of martial law.

Around 10 PM on the 3rd, President Yoon Seok-yeol announced in an emergency address at the Presidential Office in Yongsan that "I declare martial law to protect the free Republic of Korea." In response to President Yoon's declaration of martial law, the cryptocurrency market in the Republic of Korea faced panic, and Korean investors fell into a 'panic sell', selling cryptocurrencies at a frightening pace.

Due to the panic sell by Korean investors, the major cryptocurrency exchanges in the Republic of Korea, Upbit and Bithumb, were paralyzed, and BTC plunged about 30%, while most altcoins fell more than 40%.

Around 11 PM on the 3rd, BTC recorded $66,000, including Ripple (XRP) at $1.16, and many major altcoins listed on Korean exchanges also recorded a drop of up to 50%.

As Korean investors sold cryptocurrencies in fear, a 'reverse kimchi premium' occurred, where BTC prices in Korea were priced lower. On the 3rd, the 'kimchi premium' recorded a maximum of about -40%.

The rapid sell-off by Korean investors and the resulting market crash also had a significant impact on the futures market. Around 12 AM on the 3rd, the cryptocurrency futures market liquidation reached about $121 million (approximately 171.08 billion won) in an hour. In particular, the liquidation of open interest in BTC and XRP in the futures market reached $52.78 million (approximately 74.6 billion won).

On the morning of the 4th, President Yoon convened a Cabinet meeting and approved the National Assembly's resolution to lift the martial law, lifting the martial law. With the lifting of martial law in about 6 hours, the cryptocurrency market began a rapid recovery, and most cryptocurrencies recovered to similar prices as the morning of the 3rd.

As of 9 AM on the 4th, based on CoinMarketCap, BTC is trading at $95,894, and XRP is at $2.54.

Reporter Kwon Seung-won ksw@blockstreet.co.kr