The cryptocurrency market showed signs of recovery after South Korean President Yoon Suk-yeol reversed a sudden martial law declaration within six hours of its imposition. The controversial order, lifted during an early-morning Cabinet meeting, followed a dramatic parliamentary rejection, with 190 out of 300 lawmakers voting against it.

Acknowledging the National Assembly's stance, Yoon announced, “I will accept the Assembly’s request and lift it,” as reported by The Washington Post. South Korean law mandates the removal of martial law if a parliamentary majority demands it.

The president’s initial decision was broadcast live, citing “threats posed by North Korea’s communist forces” and the need to “eliminate anti-state elements.” His justification triggered global reactions, with the White House expressing “serious concern” over the developments.

The declaration caused turmoil in global cryptocurrency markets, sending Bitcoin, Ethereum, and XRP prices tumbling. However, with the reversal of martial law, these cryptocurrencies have rebounded, recovering by 2.4%, 3.3%, and 9.2%, respectively, according to CoinMarketCap.

The White House responded positively to Yoon’s decision, stating, “We are relieved President Yoon has respected the ROK National Assembly’s vote and reversed his concerning declaration of martial law.”

The political drama unfolded just a day after South Korea witnessed its second-highest retail crypto trading volume of the year. XRP led the frenzy with $6.3 billion in volume, followed by Dogecoin at $1.6 billion, Stellar at $1.3 billion, and other altcoins like Ethereum Name Service and Hedera.

While the reversal calmed markets, the episode underscored the sensitivity of crypto to geopolitical upheavals, highlighting its volatile yet resilient nature.