Upbit's 'Top 3 Coins' Collapse! CLARITY Act Rejected, Next is the Fed, Will it Fall Further?

Upbit: Bitcoin plunges to the 103 million KRW level... 'Top 3 Coins' plummet together after CLARITY Act rejected

▲ Upbit coin market, investor sentiment cools/AI generated image ©

The domestic virtual asset market has once again entered a deep downturn. Following two consecutive days of declines in the New York stock market due to rising US Treasury yields and international oil prices, the US cryptocurrency market structure bill, the CLARITY Act, was also rejected in a procedural vote in the Senate, causing Bitcoin (BTC), Ethereum (ETH), and XRP (Ripple) to plummet simultaneously. Upbit's trading volume increased compared to the previous day, but it still fell short of 2 trillion KRW, indicating that the inflow of aggressive bargain buying remains limited.

According to Upbit, the largest domestic virtual asset exchange, as of 7:32 AM on the 16th, Bitcoin was trading around 102.7 million KRW, down 2.82% from the previous day. The intraday low dropped to 102.5 million KRW. Ethereum fell by 4.18% to 3.255 million KRW, and Solana (SOL) dropped by 4.84% to 131,700 KRW. The Upbit Composite Index fell by 2.93% to 10,465.67, the Upbit Altcoin Index by 4.91%, Upbit10 by 4.12%, and Upbit30 by 3.91%. The Bitcoin group fell by 2.83%, while the Ethereum group dropped by 4.18%, indicating a relatively more pronounced decline in altcoins.

Overnight, the external environment surrounding risk assets also deteriorated. On the 15th, the New York stock market showed weakness for two consecutive days due to rising US Treasury yields and high oil price burdens. The US 10-year Treasury yield surpassed 5% during trading, soaring to its highest level since 2007, and international oil prices exceeded $100 per barrel, simultaneously increasing inflation and interest rate burdens. The market's attention is now focused on the Fed's monetary policy decision on the 16th.

The rejection of the CLARITY Act was a direct hit to the virtual asset market. On the 15th, the US Senate failed to secure 60 votes in a procedural vote to advance the bill's deliberation. Disappointment selling emerged in a market that had hoped for regulatory framework establishment, pushing Bitcoin down to around $75,000 at one point, and Ethereum also fell to around $2,400. With regulatory uncertainty increasing again, coupled with the liquidation of high-leverage positions, the decline in altcoins further expanded.

In the domestic market, trading volume increased but has not yet recovered the 2 trillion KRW level. According to Upbit Datalab, as of 7 AM, the daily trading volume was 1.89 trillion KRW, and the recent 24-hour trading volume was 1.98 trillion KRW. The 24-hour trading volume increased by 5.79%. XRP accounted for 24.87% of the total trading volume, maintaining an overwhelming first place, followed by Bitcoin at 7.23%, Ethereum at 6.08%, Tether (USDT) at 5.03%, and CAP at 3.54%. Even amidst the sharp decline, some altcoins showed selective strength, with Astar (ASTR) rising by 14.20%, Vethor Token (VTHO) by 21.11%, and Falcon Finance (FF) by 9.30%.

This week's major turning point for the market is the outcome of the Fed meeting. With regulatory uncertainty in the form of the CLARITY Act becoming a reality, and Treasury yields and oil prices remaining high, the cryptocurrency market is likely to react even more sensitively to monetary policy signals. Particularly in the domestic market, whether Bitcoin stabilizes around 103 million KRW, whether buying returns to altcoins that experienced a sharp drop, and whether Upbit's trading volume recovers to the 2 trillion KRW level again are indicators to gauge the recovery of investor sentiment. If the Fed issues hawkish signals after the rejection of the CLARITY Act, risk-averse sentiment may continue, whereas if monetary policy uncertainty eases, there is room for a short-term rebound, especially for oversold assets.

*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.*