Upbit couldn't smile... Liquidity 'vanishes' despite Bitcoin rebound

Upbit's trading volume 'plunges' to early 1 trillion won... Persistent wait-and-see attitude despite Bitcoin rebound

▲ Upbit, Bitcoin, Ethereum, Ripple/AI generated image

Although Bitcoin recovered to 93 million won and Ethereum and XRP (Ripple) all rose simultaneously, domestic investor sentiment has yet to fully recover. While prices rebounded, trading volume significantly decreased, raising concerns that this rally might be a limited rebound rather than a full trend reversal.

As of 9:35 PM on July 3rd, according to Upbit, Bitcoin was trading at 93,462,000 won, up 0.55% from the previous day. It rose to 93,716,000 won during the day, stably maintaining the 93 million won level. Ethereum was 2,615,000 won (+1.91%), and XRP was 1,668 won (+1.58%), showing that all three major cryptocurrencies by domestic market capitalization were on an upward trend. Upbit's Composite Index rose to 9,748.97 (+0.71%), the Upbit Altcoin Index to 2,509.57 (+1.68%), and the Upbit10 Index to 2,316.46 (+1.14%), indicating a simultaneous rise in major indices.

However, contrary to the price increase, market liquidity actually contracted. According to Upbit Datalab, the total trading volume was 1.25 trillion won, a decrease of 19.73% compared to 24 hours prior. The day's trading volume also remained at 776.874 billion won. In the trading volume distribution, XRP accounted for the highest proportion at 8.31%, followed by Bitcoin (7.54%), Ethereum (7.09%), and Tether (5.37%). This showed that even with reduced trading volume, funds were concentrated on specific assets.

The market's strength is interpreted as being influenced by expectations of easing U.S. monetary policy and a recovery in global risk asset appetite. As concerns about U.S. interest rate hikes recently somewhat eased, bargain hunting flowed into risk assets, including Bitcoin, leading to a concurrent rise in major altcoins like Ethereum and XRP. The fact that the Upbit Altcoin Index recorded a higher growth rate than the Bitcoin group also indicates a partial recovery in risk asset preference.

However, it is difficult to say that the market sentiment has fully recovered. A nearly 20% decrease in trading volume also means that new funds participating in the rally are limited. Typically, a strong bull market sees both price and trading volume increase, but currently, only prices are rising while trading volume is decreasing. This suggests that investors are maintaining a wait-and-see attitude rather than actively pursuing new purchases.

Moving forward, the recovery of trading volume is considered a key variable for the market. If Bitcoin stably maintains the 93 million won level and trading volume also increases, expectations for further gains could grow. Conversely, if the decrease in trading volume continues, it is difficult to rule out the possibility that this rebound will remain a short-term technical bounce. For the time being, whether liquidity recovers will likely be a more important indicator for determining market direction than price.

*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.*