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Upbit Trading Volume Recovers 1 Trillion Won, But... Investor Sentiment 'Frozen' Amid Bitcoin's 95 Million Won Collapse
▲ Upbit coin market, investor sentiment rapidly cooling/AI generated image ©
Ahead of the opening of the US stock market, the cryptocurrency market turned bearish again. Bitcoin fell below 95 million won, and major altcoins such as XRP (Ripple), Ethereum, and Solana all declined. Trading increased, but investor sentiment shows little sign of recovery.
As of 8:42 PM on the 7th, according to Upbit, Bitcoin traded at 94,667,000 won, down 1.43% from the previous day. During intraday trading, it briefly dropped to 94,149,000 won, breaking the 95 million won mark. Most major coins showed weakness, with XRP at 1,681 won (-2.10%), Ethereum at 2,663,000 won (-1.44%), Solana at 121,400 won (-1.22%), Stellar Lumens at 291 won (-3.00%), Worldcoin at 586 won (-4.87%), and Dogecoin at 112 won (-2.61%).
The Upbit Composite Index also declined. The Upbit Composite Index fell to 9,838.79 (-1.31%), the Upbit Altcoin Index to 2,530.84 (-1.58%), the Upbit10 Index to 2,343.69 (-1.53%), and the Upbit30 Index to 2,119.34 (-1.48%). Both the Bitcoin Group and Ethereum Group also fell by 1.43% and 1.45% respectively, reflecting the overall contraction in market investor sentiment.
Trading somewhat revived. According to Upbit Datalab, the 24-hour trading volume reached 1.03 trillion won, an increase of 35.18% from the previous day, recovering the 1 trillion won mark. However, the increase in trading did not immediately lead to an expansion of buying pressure. The proportion of trading volume was Bitcoin 13.65%, XRP 13.25%, Ethereum 7.75%, Tether 5.80%, and Solstice 4.46%. The market's assessment is that while short-term trading and event-driven transactions have increased, the overall preference for risky assets remains limited.
Major negative factors are cited as the backdrop for the market's weakness. Strategy recently sold 3,588 BTC (approximately $216 million), putting pressure on the market. The company explained it was a measure for preferred stock dividends and liquidity securing, but the fact that a company symbolized by aggressive Bitcoin accumulation actually proceeded with selling dampened investor sentiment. Furthermore, macroeconomic variables such as geopolitical uncertainty surrounding the US and Iran, and the retreat of expectations for a US benchmark interest rate cut, are also pressing down on risky asset investment sentiment.
In the short term, whether risk asset preference recovers after the opening of the US stock market is considered the most important variable. The prevailing view in the market is that if Bitcoin fails to quickly recover to 95 million won, it will be difficult to rule out the possibility of further correction. Conversely, if the US cryptocurrency market structure bill, the CLARITY Act, progresses and Bitcoin spot ETF inflows expand again, there remains room for investor sentiment to improve. For the time being, the actual inflow of buying power, rather than trading volume, is expected to be the key variable determining market direction.
*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.*
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