BTC Rebounds Above $96,000 After South Korea’s Martial Law is Lifted; Tron Surges 80%, and More: Dec 4

Bitcoin is currently priced at $96,582, showing a modest 0.97% increase in the past 24 hours, while Ethereum trades at $3,614, down 0.79% over the same period. The futures market remains balanced, with a 49.2% long and 50.8% short position ratio. The Fear and Greed Index, a key measure of market sentiment, climbed from 76 (Greed) yesterday to 78 (Extreme Greed) today.

Despite South Korea’s declaration of martial law on December 3 briefly pushing Bitcoin to $95,692 and Ethereum to $3,643.90, both assets rebounded after the lift of the martial law, with Bitcoin up 2.4% and Ethereum gaining 3.3%. Other assets saw significant moves, with Tron surging 80% to $0.40, Cardano climbing 275% to $1.20, and XRP rising 200% to $2.84 over the past 30 days. In South Korea, XRP trading volume hit $6.3 billion, while Dogecoin and Stellar reached $1.6 billion and $1.3 billion, respectively.

1. On Upbit, Bitcoin faced a sharp negative premium, plunging by 30% following the President’s declaration of martial law. However, just six hours later, the emergency martial law was lifted, allowing BTC and ETH to recover swiftly. Tron and a few other altcoins surges 80% in 24 hours amid the volatility. 
2. Meanwhile, Vitalik Buterin published an insightful article detailing a blueprint for building the ideal crypto wallets. His vision emphasizes cross-layer-2 (L2) transactions and robust privacy protection, setting the stage for a new era of user-friendly and secure crypto tools.
3. Pump.fun's November revenue hit a record high of $93.88 million.
4. Virgin Cruises announced it would become the first cruise company to accept BTC payments.
5. BlackRock's spot Bitcoin ETF assets under management exceeded 500,000 BTC.

Crypto Fear & Greed Index | Source: Alternative.me 

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Read More: Bitcoin Price Prediction 2024-25: Plan B Forecasts BTC at $1 Million by 2025

Source: KuCoin 1 Day BTC/USDT chart

The global cryptocurrency market experienced a rollercoaster ride as South Korea grappled with a dramatic political crisis. President Yoon Suk-yeol declared martial law, only to rescind it six hours later following overwhelming opposition from lawmakers. This turmoil caused sharp fluctuations in crypto prices, underscoring the market’s sensitivity to geopolitical developments.

The unexpected declaration of martial law in South Korea caused immediate turbulence in the cryptocurrency market. Following the announcement, Bitcoin dropped sharply to $95,692, Ethereum fell to $3,643.90, and XRP slid to $2.54, sparking concern among investors. However, swift action to reverse the decision led to a rapid recovery across major assets, with Bitcoin rebounding by 2.4%, Ethereum gaining 3.3%, and XRP surging by 9.2%, according to CoinMarketCap.

South Korea's active retail trading community played a pivotal role in stabilizing the market. Trading volumes on December 2nd reached their second-highest level of the year, driven by heightened activity in assets like XRP, which recorded $6.3 billion in volume. Dogecoin and Stellar also saw significant traction, with volumes of $1.6 billion and $1.3 billion, respectively. Emerging tokens like Ethereum Name Service and Hedera contributed to the day’s dynamic activity as traders leveraged the volatility to reposition.

Source: KuCoin 1 Day TRX/USDT chart

During the political turmoil, Tron (TRX) rallied 80%, climbing to $0.40 after briefly hitting $0.43. Analysts pointed to the token’s role as a fast transfer mechanism during exchange disruptions.

“The recent rally in Tron (TRX) appears to be partly driven by political instability in South Korea,” said Rachael Lucas, crypto analyst at BTC Markets. “TRX’s role as a widely used transfer token between exchanges, especially in South Korea, makes it a tool for traders looking to move funds across platforms quickly.”

Lucas added that trading restrictions on Upbit and Bithumb, which control over 80% of South Korea’s spot trade volume, likely drove traders to seek alternatives.

“It seems that during martial law, all of crypto is moving out to foreign exchanges as South Korean exchanges blew up,” a user on X wrote.

Min Jung, an analyst at Presto Research, suggested other factors contributed to the rally. “It could also be part of a broader 'Dino rotation,' where legacy cryptocurrencies like $XRP have been rallying under current market conditions,” she said.

Speculation around Justin Sun, Tron’s founder, also fueled debates. “Rumors suggest that a significant portion of $TRX's supply is controlled by Justin Sun, raising questions about whether the rally is organic or influenced,” Jung noted.

Source: KuCoin

While Bitcoin approached $100,000, Cardano (ADA) and XRP outperformed it with gains of 275% and 200% over 30 days. ADA climbed above $1.20, driven by ecosystem upgrades and regulatory optimism. XRP reached $2.84, its highest value in seven years.

XRP Price Chart | Source: KuCoin

“Cardano’s focus on scalability and interoperability is finally paying off,” an analyst noted. “Its technical advancements, such as Hydra and Mithril, have created a robust platform that appeals to institutional and retail investors.”

XRP’s surge was fueled by reduced reserve fees and partnerships with financial institutions. Ripple introduced tokenized money market funds and prepared to launch RLUSD, its stablecoin, which received regulatory approval in New York.

Bitcoin and Altcoins Rebound After Martial Law-Triggered Dip

The resignation of SEC Chair Gary Gensler and the U.S. presidential election have bolstered market confidence. Many expect the incoming administration to adopt a crypto-friendly stance. This optimism, combined with ongoing technical advancements, has positioned altcoins for growth.

Ripple’s commitment to stability was evident in its decision to relock 770 million XRP tokens for another five years. The company’s moves signal confidence in XRP’s long-term value. The Relative Strength Index (RSI) stands at 91.47. An RSI above 70 signals overbought conditions, often hinting at a potential market adjustment. A retracement could bring XRP's price to around $1.79. If buying pressure persists, XRP could target $3, depending on overall market trends.

Read More: What Is Altcoin Season (Altseason), and How to Trade Altcoins?

The past week underscored the intricate relationship between politics, regulation, and market behavior. South Korea’s political crisis and regulatory shifts in the U.S. created opportunities for altcoins like Cardano and XRP to outperform Bitcoin. These events demonstrate the resilience of blockchain projects and their potential to thrive in an evolving landscape. As the crypto market matures, investor focus is shifting toward assets that combine innovation with practical utility.