Bitcoin smiles, but investors left... Upbit hit by 'unprecedented trading drought'

▲ Upbit's 'static market' amid plummeting trading volume / AI generated image ©

Although Bitcoin has recovered the 93 million won mark and major altcoins have risen simultaneously, investor sentiment is slow to revive. While risk asset preference has partially recovered due to the strength of US stock futures, Upbit's 24-hour trading volume is significantly less than 1 trillion won, indicating a continuing unprecedented trading drought.

According to Upbit and Upbit Datalab as of 9:16 PM KST on July 9, Bitcoin maintained the 93 million won range, rising 0.91% from the previous day to 93,764,000 won. XRP rose 0.49% to 1,636 won, Ethereum (ETH) remained flat at 2,604,000 won, and Tether (USDT) rose 0.20% to 1,496 won. In contrast, Solana (SOL) fell 0.17% to 116,000 won, Stellar Lumens (XLM) fell 0.74% to 269 won, and Dogecoin (DOGE) fell 0.92% to 108 won, showing continued differentiation among assets. Some altcoins showed selective strength, with Kaito (KAITO) rising 3.24%, Blast (BLAST) rising 6.57%, and Enso (ENSO) rising 4.56%.

Despite improved investor sentiment, trading remained sluggish. According to Upbit Datalab, Upbit's 24-hour trading volume was 661.427 billion won, a 37.40% decrease from the previous day. The day's trading volume also remained at 414.963 billion won, showing a significant contraction in market participation. Bitcoin accounted for the highest proportion of trading at 11.15%, followed by XRP (9.73%), Ethereum (7.55%), Tether (6.08%), and Solstice (5.83%). Bitcoin's trading volume was estimated at approximately 73.74 billion won.

The limited upward trend today is attributed to the partial recovery of risk asset preference as US stock futures showed an upward trend. Investor sentiment, which had been dampened recently by geopolitical risks in the Middle East and uncertainty regarding US interest rates, has somewhat stabilized, leading to low-price buying in Bitcoin and some major altcoins. However, it is premature to view this as a full trend reversal, as trading volume does not support it.

Going forward, the recovery of trading volume is considered a key variable for the market. If Bitcoin defends its price as it does now but is not accompanied by trading volume, the upward momentum is likely to weaken. Conversely, if the strength of US stocks continues and investor sentiment improves, leading to an increase in trading volume again, a moderate rebound centered on major coins is possible. For the time being, a differentiated market with low trading volume is likely to persist.

*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.*