Bitcoin suffers unusual drop in South Korea

Bitcoin, one of the most influential cryptocurrencies in the world, suffered a 23% drop in South Korea this Tuesday (03) after Yoon Suk Yeol, president of the Asian country, declared martial law in the country. Other digital currencies also showed great volatility.

Retreat is linked to the value of the dollar and political crisis

The values ​​of cryptocurrencies are usually offered in reference to the value of the dollar. Recently the local currency, the won, has been at its lowest level against the dollar in recent years. This drop was also seen in the country's investment funds and stock exchanges. The Bitcoin cryptocurrency was traded at US$71,814.

This Wednesday (04), the cryptocurrency managed to recover some points, trading at US$88,000. Still, the value is well below the global market average.

Martial Law was decreed by the president as a way to supposedly protect the country from the Democratic Party, which was accused by him of sympathizing with North Korea. Martial law was revoked five hours after it was decreed and the president is currently being impeached.

The country's political instability has affected cryptocurrency prices because, as it is normally used as an emergency reserve, it tends to be widely traded in times of uncertainty, triggering the supply of assets and generating devaluation.

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_{Bitcoin records impressive drop in South Korea (Photo: reproduction/ Bloomberg /Getty Images Embed)}

The event surprised experts, as South Korea usually keeps its cryptocurrency prices above those of the rest of the world, as there is little demand in the country.

Economists point out that the price should stabilize when the nation's political issues return to normal.

Crisis in South Korea

The Martial Law declared by the president aimed to limit the activities of the press and the armed forces in the country, replacing customary laws with martial laws, something that, according to the politician, would protect South Korea from the movements of Pro-North Korea groups. . The decree was made amid disapproval of the president's services and disagreements with the National Assembly.

Many politicians were against the president's decision and proposed that parliamentarians vote against the decree. During the vote, soldiers from the Armed Forces tried to invade the plenary, which clashed with protesters.

After the cancellation of the decree, the Democratic Party filed a request for impeachment against the president, something that was supported by many politicians.

Featured photo: Bitcoin (Reproduction/ Dan Kitwood /Getty Images Embed)