Upbit's Bitcoin Holds Its Breath, Niche Altcoins See Trading Volume Explode!

Major Coins 'Frozen' Amid US-Iran Uncertainty and FOMC Caution… Upbit Now in an 'Altcoin Rotation' Frenzy

▲ Upbit, Bitcoin, XRP ©

As the second round of negotiations between the US and Iran falls into a deep fog and with the massive event of next week's Federal Open Market Committee (FOMC) meeting approaching, supply and demand in the virtual asset market are extremely diverging. While heavy major coins like Bitcoin (BTC) and Ethereum (ETH) show dull sideways movement and their trading volume has sharply dropped, a peculiar phenomenon is occurring where speculative funds targeting niches are fiercely flocking to individual altcoins, pushing up the overall market trading volume.

The 'Ice Age' for Major Coins, Flagship Cryptos Halted

According to Upbit, South Korea's largest virtual asset exchange, as of 9:40 AM on the 26th, flagship Bitcoin is trading at 115,671,000 won, down 0.02% from the previous day, trapped in a tight consolidation range. Ethereum, the second-largest by market cap, rose 0.06% to 3,457,000 won, and XRP (Ripple) remains unchanged at 2,123 won. Major coins such as Solana are also treading water, having lost clear directional momentum.

Particularly noteworthy is the 'sharp drop in trading volume' for major coins. Based on Upbit, Bitcoin's 24-hour trading volume has shrunk to approximately 68 billion won, clearly demonstrating extreme wait-and-see sentiment.

Altcoins Fill the Void Left by Major Coins… Driving Upbit's Weekend Trading Volume

However, the sluggishness of major coins did not signify a downturn for the entire market. While large capital held its breath, an explosive 'rotational trading' trend, centered on lighter small and medium-sized altcoins, swept through the order books over the weekend.

In fact, according to data from CoinGecko, a global cryptocurrency market data aggregator, Upbit's total 24-hour trading volume surged by 10.8% compared to the previous day, even amidst Bitcoin's dull sideways movement.

This is entirely due to short-term speculative funds flowing into altcoins. In the KRW market, Orca (ORCA) surged by 16.81% to record 1,939 won, and Axie Infinity (AXS) amassed an astounding 324.6 billion won in trading volume, overwhelming Bitcoin's trading volume. Volatility in the BTC market is even more intense. Based on weekly growth rates, Centrifuge (CFG/BTC) skyrocketed by 148.07%, Tottenham Hotspur (SPURS/BTC) by 72.17%, and Katana (KAT/BTC) by 66.67%, with individual tokens jumping around and absorbing market liquidity.

A Dilemma Created by Uncertainty… What's the Market Outlook for This Week?

Behind this extreme phenomenon of 'major coin neglect, altcoin strength' lies layers of macroeconomic uncertainty.

First, the second round of negotiations between the US and Iran, which had raised hopes for a resolution, has effectively fallen into a deadlock, leaving geopolitical risks in the Middle East unresolved. Furthermore, ahead of the upcoming April FOMC meeting, fear persists regarding what hawkish (pro-monetary tightening) remarks Fed Chair Jerome Powell might make. This is the result of investors, who find it burdensome to tie up large capital in Bitcoin amidst an uncertain macro environment, turning to light altcoin day trading, which allows for easier entry and exit.

Experts in the virtual asset industry stated, "The current market is a typical wait-and-see market where prices are determined solely by supply and demand in a vacuum lacking major positive or negative news," and predicted, "Until next week's FOMC results are announced and the earnings of major tech stocks in the US market take shape, the dull sideways movement of major coins and localized pumping relays centered on altcoins are highly likely to continue." They also advised, "In the case of altcoins that surge solely on supply and demand without clear fundamentals, they could instantly face a profit-taking 'bomb' depending on the FOMC results, so particular caution should be exercised against impulsive trading over the weekend."

*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 solely for informational purposes.*