Middle East Tensions Spread Again…Upbit Market Sees Fear Selling

▲ Upbit Market Trend: Why did Bitcoin, XRP, Ethereum all falter together? Is it a simple correction or a direction change?/AI generated image ©

As tensions in the Middle East escalated again, the Upbit market immediately froze. Following news that the US military launched airstrikes on southern Iranian regions near the Strait of Hormuz, Bitcoin and major altcoins are uniformly showing a bearish trend.

According to Upbit data as of 10:08 AM on May 26, Bitcoin (BTC) traded at 113,963,000 won, down 0.81% from the previous day. The intraday high was 114,966,000 won, and the low was 113,838,000 won. The 24-hour trading volume on Upbit was approximately 81.45003 billion dollars. Across the market, risk-off sentiment is strengthening, and investor sentiment is rapidly cooling.

Most altcoins also showed a decline. XRP (Ripple) fell by 0.75% to 1,993 won, and Ethereum (ETH) dropped by 0.99% to 3,108,000 won. Solana (SOL) fell by 1.03% to 125,100 won, and Dogecoin (DOGE) also showed weakness, falling by 1.32% to 150 won. In particular, Near Protocol (NEAR) and Ethereum Name Service (ENS) related tokens saw relatively larger declines, spreading selling pressure across altcoins.

The sharp market reversal is attributed to the re-escalation of military tensions between the US and Iran. According to Reuters, the US Central Command announced on the 25th (local time) that it had launched airstrikes on targets in southern Iran near the Strait of Hormuz in an act of self-defense. Iranian vessels attempting to lay mines and missile launchers were described as the targets of the attack. Previously, the US and Iran were in the final stages of negotiations over a draft 60-day nuclear agreement memorandum of understanding (MOU) focusing on reopening the Strait of Hormuz and ceasing hostilities, but this airstrike has brought geopolitical risks back into focus.

However, some in the market believe it is not yet a full-blown panic. Bitcoin, based on Upbit, is maintaining support at the 113 million won level, and some investors are also noting the possibility of bargain hunting if the Middle East risk proves to be a short-term shock. Indeed, large-cap assets like Bitcoin, Ripple, and Near Protocol still occupy the top ranks in Upbit's KRW market trading volume, indicating a wait-and-see approach.

The future direction of the market is likely to be determined by Iran's response level and the continuation of US-Iran nuclear negotiations. The market anticipates that if concerns about a blockade of the Strait of Hormuz resurface, volatility across risk assets could increase. Conversely, if both sides maintain a negotiation stance instead of escalating the conflict, there is a prospect of attempts to recover losses, centered around Bitcoin.

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