Bitcoin’s price experienced a sharp decline on Nov. 21, dropping nearly 4% in response to escalating political tensions in South Korea. The nation’s declaration of martial law, aimed at controlling widespread civil unrest, sent shockwaves through financial markets, including the cryptocurrency sector. Bitcoin, which had been trading above $37,000, fell to around $35,600 during the day, reflecting investor apprehension.
The imposition of martial law comes amid protests and clashes across South Korea, sparking fears of economic instability in one of Asia’s key markets for cryptocurrency. South Korea has historically been a hub for crypto activity, with its exchanges often driving significant market volume. However, the current unrest has led to increased uncertainty, causing traders to liquidate positions in favor of safer assets.
The market turmoil wasn’t limited to Bitcoin; other major cryptocurrencies like Ethereum and Solana also saw declines, while stablecoins experienced a surge in demand. Analysts attribute the sell-off to a combination of geopolitical risks and profit-taking after recent bullish trends. The situation underscores how external macroeconomic and political events can heavily influence the highly volatile crypto markets.
Despite the dip, some experts remain optimistic about Bitcoin’s long-term trajectory, citing strong institutional interest and broader adoption. However, they caution that ongoing instability in South Korea and other global hotspots could continue to introduce short-term volatility. As the situation develops, crypto investors are closely monitoring geopolitical events for further market implications.
