Trading Volume Decreased, But Altcoins Soared… Upbit Market's Suspicious Rotation

▲ Upbit, Bitcoin, XRP ©

While Bitcoin, Ethereum, and XRP all rose on Upbit, the overall market still appears to be in a 'selective bull market' trend. Despite the New York stock market's rally to all-time highs, the cryptocurrency market continued its limited upward trend with a wait-and-see approach, rather than explosive chase buying.

According to Upbit data as of 6:15 AM on May 9, Bitcoin (BTC) was trading at 118,177,000 KRW, up 0.24% from the previous day. Ethereum (ETH) rose 0.65% to 3,399,000 KRW, and XRP (Ripple) rose 1.86% to 2,083 KRW. The Upbit Composite Index increased by 0.58% to 11,914.08, and the Upbit Altcoin Index increased by 1.80% to 3,162.34, showing a relatively stronger performance for altcoins.

The market's rise was underpinned by the New York stock market reaching all-time highs. On May 8 (local time), the Standard & Poor's (S&P) 500 index closed at 7,398.93, and the Nasdaq Composite Index closed at 26,247.08, continuing their upward trend for six consecutive weeks. The market focused on the US April non-farm employment increase of 115,000, which was more than double the estimate. Expectations of the US economy's resilience and a soft landing, rather than fears of a recession, stimulated risk-asset preference.

In particular, news that Intel secured a semiconductor production contract for Apple's next-generation devices led to a nearly 14% surge, spreading buying interest across semiconductor stocks. As the strength of tech stocks like Nvidia and AMD continued, the cryptocurrency market also partially reflected the improved investor sentiment. However, persistent tensions between the US and Iran, a rebound in international oil prices, and a sharp drop in the US consumer sentiment index are still factors limiting the market's upside.

In the Upbit market, funds continued to concentrate on certain altcoins rather than large-cap stocks. Among the top weekly gainers, Nervos (CKB/BTC) rose 100%, Flock (FLOCK/BTC) rose 86.30%, and Clearpool (CPOOL/BTC) rose 84.38%, showing strong volatility. Ondo Finance (ONDO/BTC) and Sahara AI (SAHARA/BTC) also surged by 68.33% and 75.86% respectively, continuing the strong performance of AI and Real World Asset (RWA) related themes.

However, trading enthusiasm appears to have cooled somewhat. According to CoinGecko, Upbit's 24-hour trading volume was approximately $1.12174 billion, a decrease of 11.1% from the previous day. The market is observing whether Bitcoin will settle in the 118 million KRW range, while also noting the possibility that an altcoin-centric rotation market will continue for some time.

*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.*