Upbit Bull Market Ignites, But Trading Volume Dips… The Real Game Starts Now

▲ Bitcoin, Ethereum, XRP, Solana on the rise based on Upbit… Trading volume is key/AI-generated image ©

As Bitcoin recovered the 120 million KRW mark, the overall Upbit market heated up again. The rally to all-time highs in the New York stock market and a sharp drop in oil prices revived demand for risk assets, with the big three — Bitcoin, Ethereum, and XRP — leading the bull market in early trading.

According to Upbit data as of 6:12 AM KST on May 6, Bitcoin (BTC) traded at 120.7 million KRW, rising 1.75% from the previous day. Ethereum (ETH) increased by 1.00% to 3.52 million KRW, and XRP (Ripple) rose 1.40% to 2,096 KRW. The Upbit Composite Index rose 1.46% to 12,094.31, the Upbit Altcoin Index rose 1.56% to 3,174.48, and the Upbit Top 10 Index rose 1.59% to 2,982.59, confirming a large-cap coin-centric bull market.

The bull market selectively extended to altcoins. In the Upbit KRW market, Hive (HIVE) surged 25.57% to 111 KRW, Zilliqa (ZIL) rose 13.36% to 6.96 KRW, Pengu (PENGU) rose 13.42% to 16.9 KRW, and Definitive (EDGE) increased 9.80% to 168 KRW. Perl (PERL) gained 9.67% to 431 KRW, and Steem (STEEM) rose 7.31% to 89.6 KRW, indicating rapid short-term rotational trading.

A strong altcoin market was also observed among the top weekly gainers against Bitcoin. Bioprotocol (BIO/BTC) rose 74.42%, NKN (NKN/BTC) rose 63.64%, Tokamak Network (TOKAMAK/BTC) rose 51.39%, and Reserve Rights (RSR/BTC) rose 50.00%. However, rather than the entire market rising indiscriminately, as gains were concentrated in a few specific assets, it was closer to a selective market driven by Bitcoin's strength.

The direct background for this rally is the risk asset rally originating from the US stock market. On May 5 (local time) in the New York stock market, the Dow Jones closed up 0.73%, the S&P 500 up 0.81%, and the Nasdaq up 1.03%, with the S&P 500 and Nasdaq hitting new all-time highs. While the US-Iran ceasefire trend continued, Brent crude and WTI plummeted by 3.99% and 3.90% respectively, easing inflation concerns, and US Treasury yields also fell. Furthermore, with approximately 85% of S&P 500 companies reporting first-quarter earnings that beat market expectations, and semiconductor and AI stocks surging, buying sentiment spread to the crypto market.

There was a difference in sentiment regarding trading volume. According to CoinGecko, Upbit's 24-hour trading volume decreased by 5.1% to $1.12545 billion. Internally on Upbit, large-cap coin trading dominated the market, with Bitcoin's 24-hour trading volume at approximately 236.4 billion KRW, Ethereum at approximately 125 billion KRW, and XRP at approximately 98.2 billion KRW, but the overall exchange trading volume slightly decreased, indicating a phase of confirming the bullish trend rather than aggressive buying.

The key going forward is whether Bitcoin can stably maintain the 120 million KRW level. If this level is sustained, buying interest could further spread to large-cap coins like Ethereum, XRP, and Solana, and the selective altcoin market is likely to continue. Conversely, if the global stock market rally falters or oil prices rebound again, quick profit-taking on recent gains could occur. Currently, the Upbit market clearly shows signs of entering a bull market, but with reduced trading volume, the next confirmation signal will be demand and supply rather than price.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*