Cryptocurrencies are volatile. As a decentralized blockchain platform, the price of crypto tokens can be affected by many factors like market trends and government regulations. The recent plunge in the price of popular cryptocurrencies like Bitcoin and XRP is linked to South Korea’s martial law declaration.
Table of Content
- Cryptocurrency price drops amidst the martial law announcement.
- Will the Martial law create a long-term drop in Bitcoin and XRP?
- Bitcoin and XRP price prediction.
- Understanding the martial law resulted in the crypto platform plunge
Cryptocurrency Price Drops Amidst the Martial Law Announcement
The declaration of Martial law in South Korea had a dramatic impact on the financial sector, especially the Crypto market. The uncertainty created by the law has created a steep decline in the price of cryptocurrencies, with Bitcoin and XRP suffering a 30% plunge.
Bitcoin, which had been trading at an all-time high of $96,000 has made a steep decline, reaching $63,000 soon after the declaration of martial law. XRP, the native token of Ripple is also stumbling, with an 18% decline right after the announcement and an 8% drop the other day. However, the trading volume of XRP in the South Korean Exchange, Upbit has reached $4.8 billion, larger than many other exchanges including Coinbase and Binance.
Will the Martial Law Create a Long-Term Drop in Bitcoin and XRP?
Crypto markets are always prone to fluctuations, a coin dropping its price today can become bullish the next day. Though the Martial law has adversely affected the crypto market, most cryptocurrencies like Bitcoin and Ether have recovered. Bitcoin is now trading at $102,757.14, even higher than before the Martial Law announcement.
However, being one of the most traded cryptocurrencies in the South Korean Exchange, XRP has not recovered yet. The currency is currently trading at $2.32.
Bitcoin and XRP Price Prediction
Though Bitcoin and XRP faced an immediate decline after the declaration of martial law, analysts forecast a bullish trend in the coming years. Bitcoin cross the $100k milestone and XRP to reach $4 by 2025.
Bitcoin price prediction for the year 2025
Bitcoin is one of the largest cryptocurrencies traded all over the world. Operating with peer-to-peer technology, the Bitcoin platform eliminates the need for a central authority to monitor the transactions. By offering low processing fees, higher security, and worldwide payments, Bitcoin is expecting to continue the growth momentum in the coming years.
| Month | Min price | Avg price | Max price | Potential ROI |
| January | $ 108,764 | $ 113,973 | $ 123,589 | 19.77% |
| February | $ 102,470 | $ 108,012 | $ 117,253 | 13.66% |
| March | $ 101,178 | $ 112,519 | $ 119,751 | 16.08% |
| April | $ 119,149 | $ 130,949 | $ 138,198 | 33.98% |
| May | $ 134,982 | $ 144,648 | $ 161,280 | 56.43% |
| June | $ 158,490 | $ 163,569 | $ 169,450 | 64.31% |
| July | $ 157,807 | $ 167,244 | $ 174,254 | 68.93% |
| August | $ 156,421 | $ 168,595 | $ 177,384 | 72.02% |
| September | $ 139,940 | $ 150,737 | $ 159,467 | 54.45% |
| October | $ 120,218 | $ 129,055 | $ 140,533 | 36.09% |
| November | $ 117,396 | $ 118,900 | $ 120,333 | 16.52% |
| December | $ 109,429 | $ 114,432 | $ 118,386 | 14.59% |
In 2025 Bitcoin is expected to trade between $101,178 and $177,384. The average trading price forecast for the year is $135,220. The highest trading price is expected in August with a price of $177,384 and the lowest trading price is anticipated in December, with $109,429. The third quarter is forecasted as bullish for Bitcoin and the fourth quarter is comparatively bearish.
XRP Price Prediction for the year 2025
XRP is the native token of XRP Ledger, offering high-performance and low-cost transactions. The high amount of circulation (more than 45 billion), a total market value of 26.73 billion, and many investors holding the token in their portfolios signify a gaining momentum in the future.
| Month | Min price | Avg price | Max price | Potential ROI |
| January | $ 1.761163 | $ 1.853373 | $ 2.12 | 8.32% |
| February | $ 1.992218 | $ 2.17 | $ 2.35 | 2.11% |
| March | $ 2.08 | $ 2.17 | $ 2.29 | 0.67% |
| April | $ 2.29 | $ 3.29 | $ 4.19 | 81.30% |
| May | $ 2.66 | $ 3.39 | $ 3.95 | 71.02% |
| June | $ 2.32 | $ 2.66 | $ 2.99 | 29.66% |
| July | $ 2.24 | $ 2.39 | $ 2.57 | 11.12% |
| August | $ 2.52 | $ 3.00 | $ 3.38 | 46.50% |
| Septemeber | $ 2.83 | $ 3.07 | $ 3.46 | 50.13% |
| October | $ 2.96 | $ 3.09 | $ 3.21 | 39.71% |
| November | $ 2.86 | $ 3.12 | $ 3.35 | 46.42% |
| December | $ 3.35 | $ 2.75 | $ 2.95 | 28.83% |
2025 is forecasted to be a bullish year for XRP. In 2025 XRP is expected to trade between $1.761163 and $4.19.The average trading price through the year is $2.17. The second quarter is anticipated to be the most bullish quarter, with April being the highest trading month with a price of $4.19. The price rise is less in the first quarter and a decline is expected at the end of the year.
Understanding the Martial Law Resulted in the Crypto Platform Plunge
South Korean President Yun Sook declared Martial Law in the country on 3rd December 2024, giving power to the military commander to make and enforce laws. Citing, North Korea’s political threat created anti-state elements in the country. The president stated that the implementation of the law was necessary to safeguard the country from North Korea’s security threats.
Final Thoughts
Cryptocurrencies are volatile in nature, and affected by a large number of socio economic factors. The announcement of martial law created an uncertainty in the financial sector has adversely affected the crypto platform, declining the price of many popular crypto tokens. However, these fluctuations are normal and not likely to occur for a long term. Always be aware of the risk factors before investing in a volatile platform like crypto.