How Will Events in South Korea Affect XRP and Other Cryptocurrencies in the Coming Days? Here is Analysts’ Opinion

South Korea’s crypto para Markets remain volatile following the latest political turmoil triggered by President Yoon Suk-yeol’s controversial declaration of martial law, which was annulled just six hours later.

Angered by the move, lawmakers and citizens are now pushing for Yoon’s ouster, a development that analysts warn could increase market instability.

On Tuesday night, Yoon declared martial law to stem growing criticism from the opposition party. The decision was met with swift backlash even from within Yoon’s People Power Party. According to MBC News, today a coalition of 191 MPs launched impeachment proceedings, with a vote expected later this week.

The political chaos had immediate repercussions on South Korea’s crypto markets. While leading exchanges Upbit and Bithumb experienced system outages due to traffic fluctuations, a sharp decline was seen in cryptocurrency prices. Although prices have since recovered, analysts warn that further developments, including a possible impeachment, could continue volatility.

“New developments such as the impeachment trial may cause volatility, but the impact will likely be limited to the domestic market and short-lived,” said Min Jung, research analyst at Presto Research.

However, others warn of broader consequences. DeSpread Research President Seunghwa Lee stated that political instability in South Korea could spread to global markets, especially for cryptocurrencies that are heavily traded by Korean investors. According to CoinGecko data, XRP, a favorite of South Korean traders, fell 15% sharper than average during the declaration of martial law.

“Given the significant influence of South Korean investors, political events that dampen investor sentiment may have sufficient impact on global markets,” Lee said.

*This is not investment advice.