After the South Korean president announced martial law, the cryptocurrency market showed a slight decline, causing massive FUD among cryptocurrency investors. The Korea Premium Index fell to -14.67, and Bitcoin was trading at nearly $65,000 on Korean exchanges at one point. Following the news, investors transferred more than $163 million in USDT to South Korean exchange Upbit, suggesting they may be planning to buy on the bullshit.
On Tuesday, Bitcoin (BTC) and crypto markets experienced a slight decline, mainly due to political issues in South Korea, which created fear, uncertainty, and doubt (FUD) among investors. . This caused the prices of some crypto assets on Korean exchanges to temporarily drop by 30%.
South Korean FUD weighs down the crypto market
South Korean President Yun Seok-Yeol declared emergency martial law, citing the threat from North Korea and claiming that the opposition party was weakening the government.
Martial law involves military oversight of civilian governance, is usually enacted in times of serious national threat, and can affect a country's democracy and public safety.
This announcement triggered negative sentiment in the cryptocurrency market, causing a drop in prices on major Korean exchanges such as Upbit and Bithumb. Bitcoin at one point fell 30% on exchanges, from $95,000 to about $61,000, while altcoins such as Ethereum and Solana fell to $2,000 and $146, respectively.
Massive FUD has caused temporary delays and restrictions on certain actions on the exchange.
For example, Bithumb users began experiencing delays accessing the site and mobile app, while Upbit users were notified of service delays in the mobile app.
According to data from CryptoQuant, the Korea Premium Index, a tool that measures the price difference between cryptocurrencies on South Korean exchanges and those on the global market, also fell to a low of -14.67. This fall in premium meant that crypto prices on South Korean exchanges traded 14% lower than global markets.
However, on-chain data suggests that investors may have taken advantage of the drop following the huge inflows of USDT into South Korean exchanges. According to Lookonchain data, the whale deposited $163 million in USDT into Upbit hours after the price drop.
