President Yoon Suk Yeol unveiled the decision during a late-night televised announcement Tuesday, explaining that the move was aimed at addressing alleged anti-state activities within the opposition Democratic Party. In response, the government stationed military personnel at key locations, including the National Assembly, and temporarily banned political gatherings.

The crypto market didn’t take long to react. On South Korea’s Upbit exchange, bitcoin (BTC) tumbled below $75,000 before rebounding to $91,699 by press time. Meanwhile, bitcoin’s global price hovered at $95,700, highlighting a stark regional price gap tied to the political upheaval. Other digital currencies, such as XRP, faced significant declines as well.

Within 60 minutes of the martial law declaration, Lookonchain reported an inflow of over $163 million in tether (USDT) into Upbit. Experts believe this sudden activity was driven by opportunistic traders attempting to seize the moment and buy during the sharp downturn.

This marks the first instance of martial law being declared in South Korea since its democratic transition in 1987. Reports detail that President Yoon defended the decision as vital for ensuring national stability, but critics, including opposition leaders and members of his own conservative party, denounced it as unconstitutional and authoritarian.

As South Korea navigates this period of political strife, the broader effects on the cryptocurrency market remain ambiguous. However, the situation demonstrates how digital asset prices can react to geopolitical shifts, particularly in regions with heavy trading activity.