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Risk-asset preference explodes with US-Iran peace talks in the air… Upbit Bitcoin takes a breather at 110 million KRW while altcoins experience a 'bull run'
▲ Bitcoin, XRP rebound on a single word from Trump… Upbit market revived/AI generated image ©
(May 7, 2026) Cryptocurrency Market Conditions
A strong tailwind is blowing through the global macro economy with news of imminent peace talks between the United States and Iran. As risk-asset preference reaches its peak, with the New York stock market setting new all-time highs, the cryptocurrency market, which has been led by the three major assets – Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) – is also taking a temporary breather, preparing for its next leap.
Even amidst the consolidation of these major cryptocurrencies, Upbit is seeing an explosive rotation of capital, primarily into specific altcoins, strongly stimulating investor sentiment.
◆ Major Cryptos 'Taking a Breather', Investor Sentiment Still 'Hot'
As of 6:30 AM on the 7th, according to Upbit, Korea's largest cryptocurrency exchange, Bitcoin is trading at 119,684,000 KRW, a slight decrease of 0.03% from the previous day, establishing a strong support line around the 119 million KRW mark. Ethereum also recorded 3,455,000 KRW, down 1.09% from the previous day, appearing to have entered a short-term correction phase to alleviate upward fatigue.
On the other hand, XRP (Ripple), one of the top three, is trading at 2,094 KRW, up 0.29%, showing remarkable resilience among major coins.
While the leading assets are exploring direction and taking a temporary rest, market funds are flowing into altcoins. According to Upbit's weekly gain data, NKN (NKN) surged by 120%, taking the overwhelming first place, followed by IOST (IOST) 100%, ORCA (ORCA) 55.57%, TOKAMAK Network (TOKAMAK) 51.39%, and other small and medium-sized altcoins are skyrocketing at a furious pace. On the day, NEAR Protocol (NEAR) surged by 16.22%, JTO (JTO) by 12.27%, and Storage (STORJ) by 10.53%, leading a selective altcoin bull market.
The intense activity on Upbit is also confirmed by data from CoinGecko, a global cryptocurrency market data aggregator. As of the morning of the 7th, Upbit's 24-hour trading volume jumped 12.4% from the previous day, demonstrating active trading by market participants.
◆ Bull Market Background: Geopolitical Risk Resolution and Favorable Macro Indicators
The current strong downside support and risk-asset preference in the cryptocurrency market are due to perfectly aligned macroeconomic tailwinds. US President Donald Trump announced the provisional suspension of 'Project Freedom', stating that "the possibility of reaching an agreement with Iran is very high," leading to a rapid dissipation of geopolitical risks in the Middle East.
Consequently, expectations for the opening of the Strait of Hormuz increased, causing West Texas Intermediate (WTI) crude oil to plummet below $100 per barrel, which immediately led to an easing of global inflation concerns. As inflation fears subsided, 10-year and 30-year US Treasury yields uniformly fell, and market liquidity resulted in the Dow Jones Industrial Average breaking the 50,000 mark and the S&P 500 and Nasdaq indices reaching new all-time highs.
The massive 'risk-on' capital flow into the stock market is interpreted as providing a strong trickle-down effect to the cryptocurrency market as well.
◆ Future Outlook: Potential for a Second Rally After Major Cryptos Consolidate
Market experts diagnose the current slight weakness in Bitcoin and Ethereum not as selling pressure but as 'healthy consolidation'. Given that macroeconomic fundamentals have turned into an extremely favorable environment, it is highly likely that major cryptocurrencies, after absorbing short-term profit-taking and consolidating their price levels, will attempt a second rally towards their previous highs.
In particular, Upbit trading data confirms a typical 'altcoin bull run' at its inception, where funds circulate to altcoins when the leading assets consolidate and form a trading range. Unless adverse macroeconomic events occur for the time being, the 'selective surge rally' of altcoins with individual positive news or technical momentum is expected to continue.
*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.*
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