Why is Upbit falling? Coin market 'chilly' despite US stock market highs

▲ Upbit Market Conditions: Why did Bitcoin, XRP, and Ethereum all falter? Is it a simple correction or a directional change?/AI Generated Image ©

The US stock market set new all-time highs again, but the Upbit market, on the contrary, is cooling down. While major coins such as Bitcoin (BTC), XRP (Ripple), and Ethereum (ETH) all showed weakness, a selective market continued, with funds gravitating only towards certain altcoins like NEAR Protocol and Worldcoin.

According to Upbit data as of 6:24 AM on May 27th, Bitcoin traded at 112,970,000 KRW, falling 1.67% over 24 hours. XRP dropped 1.34% to 1,981 KRW, and Ethereum declined 1.72% to 3,085,000 KRW. Solana also showed weakness at 124,800 KRW. The Upbit Composite Index fell 1.41% and the Upbit Altcoin Index fell 1.42%, indicating an overall contraction in investor sentiment.

On the other hand, a strong rotation continued in the altcoin market. NEAR Protocol (NEAR) ranked first in Upbit's weekly gains with 68.55%, followed by Infinit (IN), Worldcoin (WLD), and AltLayer (ALT). Worldcoin and NEAR Protocol also made it to the top ranks in Upbit's trading volume alongside Bitcoin and Ethereum, indicating a concentration of short-term buying focused on AI and new projects.

The New York stock market continued its bullish trend. The US S&P500 and Nasdaq closed at record highs, boosted by a surge in memory semiconductor stocks, but the cryptocurrency market failed to follow suit. Market analysis suggests that recent outflows from US Bitcoin spot ETFs, geopolitical risks in the Middle East, and US interest rate uncertainty are limiting risk asset preference. Indeed, institutional funds have recently shown some profit-taking, slowing down Bitcoin's upward momentum.

However, trading volume is showing signs of recovery. According to CoinGecko, Upbit's 24-hour trading volume was approximately 977.2 million dollars, an increase of 27.2% compared to the previous day. Despite the increase in trading volume, the fact that Bitcoin and major large-cap coins showed weakness suggests that market funds are clearly shifting towards specific thematic altcoins rather than a general upward trend.

The future direction of the market is expected to be determined by the US interest rate path, Bitcoin spot ETF fund flows, and the easing of Middle East risks. In the short term, whether Bitcoin can defend the 112 million KRW range is considered a key variable, and in the altcoin market, there is a high possibility that a volatile market centered on AI, Layer 2, and newly listed projects will continue.

*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.*