Upbit Shaken by Possible Resumption of US Airstrikes...Will Weekend Volatility Increase?

▲ Upbit market conditions: Why did Bitcoin, XRP, and Ethereum all falter, is it a simple correction or a trend reversal?/AI generated image ©

While the New York stock market continues its record-high trend, the cryptocurrency market is losing momentum. As Bitcoin and major altcoins uniformly show weakness, Upbit is experiencing a selective market where only some small and medium-sized altcoins are surging, leading to a deepening wait-and-see sentiment among investors.

According to Upbit data as of 9:29 AM on May 23, Bitcoin was trading at 113,256,000 won, down 0.08% from the previous day. XRP (Ripple) fell 0.10% to 2,000 won, and Solana (SOL) dropped 0.32% to 1,566 won. Ethereum (ETH) rose 0.06% to 3,102,000 won, but the overall altcoin market sentiment was bearish. The Upbit Composite Index fell 0.04% to 11,427.33, and the Upbit Altcoin Index also dropped 0.01%.

Conversely, funds continued to concentrate on certain assets. Among Upbit's top weekly gainers, Venice Token (VVV/BTC) surged 143.69% to take first place, followed by Redstone (RED/BTC) at 64.12%, Prove (PROVE/BTC) at 63.25%, Mask Network (MASK/BTC) at 59.48%, and AltLayer (ALT/BTC) at 55.56%. According to CoinGecko, Upbit's 24-hour trading volume increased by 19.7% from the previous day to $964.2 million, but the market views this as “a situation where rotational trading centered on some themed altcoins is repeating amidst a drought in trading volume.”

The market's weakness is influenced by both geopolitical risks in the Middle East and macroeconomic uncertainties. The New York stock market closed higher, driven by expectations of progress in US-Iran negotiations, falling US Treasury yields, and strong corporate earnings. The Dow Jones Industrial Average set a new record high at 50,579.70, and the S&P 500 Index continued its upward trend for eight consecutive weeks. However, the cryptocurrency market appears more sensitive to the fact that negotiations between the US and Iran remain unstable.

In particular, the Wall Street Journal (WSJ) reported that if negotiations fail, the US and Israel are considering resuming airstrikes on Iran within days. The US demands limits on Iran's nuclear program and a halt to uranium enrichment, but Iran prioritizes an end to the war and the lifting of restrictions in the Strait of Hormuz, leaving a wide gap between the two sides. Analysts suggest that risk asset preference is being limited as both the possibility of a truce extension and the potential for a renewed military conflict remain simultaneously.

Going forward, whether Bitcoin can maintain support at 113 million won and the progress of Middle East negotiations are expected to be key variables for the market. Industry experts believe that the cryptocurrency market's relatively sluggish performance, unlike the strong New York stock market, is due to the lack of active institutional capital inflow. However, as there is still a flow of funds circulating into some altcoins within Upbit, the possibility of short-term rebound attempts re-emerging depending on the easing of geopolitical risks is also being discussed.

*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.*