If Upbit's trading volume doesn't recover, Bitcoin's rebound won't last long

Upbit's trading drought continues... Bitcoin held 91 million won, but only altcoins saw a 'sparkle'

▲ Upbit Coin Market/AI Generated Image ©

While the New York stock market turned mixed despite expectations of the reopening of the Strait of Hormuz, the domestic cryptocurrency market saw a slight rebound. Bitcoin (BTC) maintained its 91 million won level, and some altcoins recorded double-digit growth, but Upbit's 24-hour trading volume could not escape its long-term slump. Even though the index rose, it is difficult to say that buying enthusiasm across the entire market has revived.

As of 7:26 AM KST on August 6, Bitcoin was trading at 91,749,000 won on Upbit, up 0.52% from the previous day. The intraday high was 92.1 million won, the low was 90,861,000 won, and the 24-hour trading volume was approximately 42.36 billion won. The Upbit Composite Index rose 0.41%, the Altcoin Index rose 0.67%, and the Upbit 10 Index rose 0.68%. The Ethereum (ETH) group showed a stronger trend, rising 1.79% compared to the Bitcoin group's 0.52%.

By individual assets, selective sharp gains were prominent. On a weekly basis, PumpFun (PUMP) recorded the highest increase at 29.32%, followed by Pearl (PRL) at 26.40%, Hey Elsa (ELSA) at 21.91%, PieVerse (PIEVERSE) at 18.35%, and Ada (ADA) at 17.32%. In contrast, the newly listed Gravity (GRVT) fell 2.89% to 437 won as of 7:26 AM, but its trading volume reached approximately 48.97 billion won, indicating concentrated speculative trading immediately after its listing.

The rebound is attributed to the stabilization of international oil prices due to expectations of the reopening of the Strait of Hormuz and technical buying that reversed recent declines. However, the direction of risk assets as a whole was mixed in the New York stock market, with the Dow Jones Industrial Average rising 0.49% while the Standard & Poor's (S&P) 500 Index fell 0.17% and the Nasdaq Index fell 0.83%. The fact that the S&P 500 closed lower after hitting an intraday high also indicates increased profit-taking pressure after the recent rally. Accordingly, the cryptocurrency market's rebound is interpreted as closer to dip buying and altcoin rotation rather than a trend-driven rise.

Trading volume revealed the fragility of the rebound. Upbit Datalab's 24-hour trading volume, compiled at 7:27 AM, was 662.628 billion won, an increase of 5.21% from the previous day, but it remained in the low range over a one-year trend. Tether (USDT) accounted for the largest share of trading volume at 17.95%, followed by XRP (Ripple) at 8.74%, Gravity at 7.39%, Bitcoin at 6.37%, and DeFi App (HOME) at 4.73%. In particular, trading was concentrated on Tether and newly listed assets, making it difficult to say that liquidity spread across the entire market.

The future market hinges on Bitcoin's ability to defend the 90 million won level and the recovery of trading volume. If Upbit's trading volume further increases while maintaining the 91 million won level, altcoin rotation may continue, but if Nasdaq weakness and Middle East negotiation uncertainties resurface, short-term buying pressure could quickly weaken. The current rebound is positive in terms of price indicators, but confirmation by trading volume is insufficient. Until trading volume escapes its long-term slump, the market is likely to see volatility driven by individual assets rather than a general bull market.

*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.*