Bitcoin Dips After South Korea Lifts Martial Law

Bitcoin (BTC-USD) saw a decline after briefly surging during South Korea’s declaration of martial law, which was lifted shortly after. The cryptocurrency’s initial spike was followed by a pullback as market dynamics shifted.

Speaking on Catalysts, Kraken’s Head of Strategy, Thomas Perfumo, discussed Bitcoin’s behavior amid global political uncertainties. He attributed recent price movements less to geopolitical events and more to market trends like ETF flows, buying patterns from companies such as MicroStrategy (MSTR), and increased activity around the iShares Bitcoin Trust (IBIT).

“These elements are key drivers of significant price action,” Perfumo explained, adding that geopolitical events typically influence overall market risk sentiment rather than directly impacting crypto.

Looking ahead, Perfumo emphasized Bitcoin’s potential to thrive under a pro-innovation agenda. “The long-term narrative for crypto over the next few years will focus on its contributions to innovation,” he stated.

This highlights Bitcoin’s dual role as both a speculative asset and a hedge in volatile times, reflecting its growing significance in the global financial landscape.