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Upbit Trading Volume Surges 47%... Hopes for the end of the crypto 'winter' grow, but caution against volatility after the surge
▲ Upbit, Bitcoin, XRP ©
Strong buying sentiment has returned to both domestic and international virtual asset markets. Amid optimism for artificial intelligence (AI) in the New York stock market, which saw the Nasdaq index reach an all-time high, Bitcoin (BTC) recovered the $85,000 mark after approximately eight months. Major virtual assets such as Ethereum (ETH), XRP (Ripple), Solana (SOL), and Dogecoin (DOGE) also surged across the board. At Upbit, the largest virtual asset exchange in Korea, 24-hour trading volume increased by over 47% in a single day, raising hopes that the 'crypto winter' that has continued this year might be coming to an end.
According to Upbit at 7:22 AM KST on the 22nd, Bitcoin rose by 5.22% from the previous day to 116,961,000 won. Ethereum increased by 3.48% to 3,745,000 won, XRP by 9.27% to 2,109 won, Solana by 5.92% to 161,100 won, and Dogecoin by 14.29% to 136 won. The Upbit Composite Index rose by 4.34% to 11,849.07, and the Upbit Altcoin Index by 4.51% to 3,285.08. Upbit10 and Upbit30 also jumped by 5.12% and 5.02%, respectively. The rise in small and medium-sized altcoins was even greater. Zetachain (ZETA) surged by 70.86%, Gravity (G) by 66.41%, and Arbitrum (ARB) by 66.11%.
Trading enthusiasm also quickly heated up. According to Upbit Datalab at the same time, as of 7:13 AM, the 24-hour trading volume surged by 47.40% compared to 24 hours prior, reaching 2.85 trillion won, and the day's trading volume already amounted to 2.74 trillion won. XRP accounted for the largest share of the 24-hour trading volume at 15.04%, followed by Bitcoin at 10.47%, Ethereum at 7.66%, Tether (USDT) at 4.90%, and Zetachain at 4.79%. As price increases were not limited to large-cap coins but spread to small and medium-sized altcoins, coupled with a sharp increase in trading volume, risk appetite in the domestic market clearly revived.
The atmosphere also shifted rapidly in the global market. On the 21st, Bitcoin on Coinbase temporarily rose to $85,895, recovering the $85,000 level for the first time in approximately eight months since January 29. Its price has risen over 7% in the past five days and approximately 35% over three months. Bitcoin had sharply declined on the 15th after the US Senate failed to pass the US cryptocurrency market structure bill, the Clarity Act, coupled with the US Federal Reserve's interest rate hike, but it later rebounded, absorbing the negative news. Declining international oil prices and optimism ahead of the summit between US President Donald Trump and Chinese President Xi Jinping also contributed to the recovery of risk asset investment sentiment. In the New York stock market, AI investment expectations re-emerged, leading to surges in Meta and Intel, and the Nasdaq index also reached an all-time high.
Internal supply and demand within virtual assets also supported the bullish trend. The capital flow of US Bitcoin spot ETFs turned to net inflow, and a large-scale short squeeze (buying pressure occurring to liquidate or cover short-selling positions) during Bitcoin's price surge amplified the gains. The total market capitalization of virtual assets increased to approximately $2.8 trillion, reaching its highest level since late January. Matt Hougan, CIO of Bitwise, presented the view that the virtual asset market's downturn is ending, assessing that the market's fundamental strength has improved, with increased trading volumes even in a bear market and expanded participation from mainstream financial companies like BlackRock. He also raised the possibility that some AI investment funds might shift to the virtual asset market.
This week, the key question is how long the upward trend will be sustained rather than the surge itself. Bitcoin is still more than 30% below its all-time high of $126,210.5 recorded in October last year, but investor sentiment is rapidly improving as it regains the $85,000 mark. However, with Upbit's trading volume surging by 47.40% in a single day and some altcoins skyrocketing by 60-70% within a day, the possibility of profit-taking and increased price volatility due to short-term overheating cannot be ruled out. This week, the capital flow of Bitcoin spot ETFs, the continuation of the AI rally in the New York stock market, international oil prices, and changes in risk appetite surrounding the US-China summit are considered key variables that will determine whether the bull market continues.
*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.*
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