Why Did the Upbit Market Cool Down? Trading Volume Collapses Below $1 Billion Despite End-of-War Expectations

▲ Trump, Bitcoin, XRP…and Upbit/AI Generated Image ©

As Bitcoin (BTC) takes a breather around the 115 million KRW mark, the Upbit market is seeing a renewed preference for risky assets driven by expectations of an end to the conflict, leading to selective strength centered on some altcoins.

As of 9:41 PM on May 25, Bitcoin was trading at 115,295,000 KRW on Upbit. The intraday high was recorded at 115,732,000 KRW, and the low at 115,000,000 KRW. At the same time, the Upbit Composite Index remained in a slightly bearish range at 11,590.23, but the Upbit Altcoin Index showed a relatively strong trend, rising by 0.43%. The Upbit 30 Index also maintained a slight upward trend, indicating continued rotational trading among large altcoins.

Market analysis suggests that expectations for a ceasefire between the US and Iran and negotiations for the reopening of the Strait of Hormuz are stabilizing investor sentiment. As international oil prices show signs of calming, risk asset preference has partially recovered, and Bitcoin's defense of the $77,000 support level is evaluated to have positively impacted domestic market investor sentiment. However, as the final settlement of negotiations remains uncertain, the overall market is showing a trend closer to rotational trading within a stable range rather than a strong directional move.

In the Upbit market, individual altcoin strength was prominent. Altlayer (ALT/BTC) showed the strongest performance with a 75% surge based on weekly gains, while Near Protocol (NEAR/KRW), Pharos (PROS/BTC), Infini (IN/KRW), and Mask Network (MASK/BTC) also recorded gains in the 50-60% range. On this day, XRP (Ripple), Ethereum (ETH), Near Protocol, and Infini showed active trading flows among the top real-time trading volumes.

On the other hand, overall market trading enthusiasm has somewhat cooled compared to before. According to CoinGecko, Upbit's 24-hour trading volume was approximately $727.42 million. Recent global risk-off sentiment and the impact of Bitcoin spot ETF outflows have led to a decrease in trading volume, keeping it below $1 billion in global exchange rankings. The market is seeing rotational trading focused on short-term themes rather than aggressive new capital inflow from individual investors.

Experts believe that US inflation data and the outcome of Middle East negotiations are key variables that will determine the short-term market direction. If Bitcoin stably holds the 115 million KRW line, an altcoin-led rebound trend may continue, but there is also a forecast that volatility could increase again if ETF outflows and spot demand slowdown persist. Particularly in the Upbit market, with individual assets repeatedly surging amidst decreasing trading volume, the need for volatility management is growing, according to analysis.

*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.*