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The cryptocurrency market, having absorbed negative factors such as the hawkish interest rate hike by the U.S. Federal Reserve (Fed) and the failure of the Clarity Act, a U.S. cryptocurrency market structure bill, to pass the Senate, is rebounding. As the New York stock market rose, led by tech stocks, Bitcoin (BTC) recovered the 105 million won level on Upbit, and strong rotational buying flowed into some altcoins like Near Protocol (NEAR). However, as the possibility of further tightening by the Fed remains, it is still necessary to confirm whether this rebound will lead to a trend reversal.
As of 7:56 AM KST on September 18, Bitcoin on Upbit rose 0.38% from the previous day to 105,248,000 won. The intraday high was 106,132,000 won, and the low was 104,785,000 won. Ethereum (ETH) increased by 1.35% to 3,369,000 won, and Near Protocol surged by 19.51% to 4,306 won. The Upbit Composite Index rose by 0.68% to 10,760.19, and the Upbit Altcoin Index rose by 1.66% to 2,901.41, indicating a relative strength of altcoins over large-cap coins.
The rebound in the New York stock market overnight also supported risk asset investment sentiment. On the 17th, the Nasdaq Composite Index rose by 1.69%, the S&P 500 Index by 1.14%, and the Dow Jones Industrial Average by 0.62% in the New York stock market. Buying flowed in, led by tech stocks, as international oil prices and U.S. Treasury yields fell. The U.S. 10-year Treasury yield dropped to 4.949%. The Fed had previously raised the benchmark interest rate by 0.25 percentage points to 3.75-4.00%, but the market largely priced this in, allowing Bitcoin to hold above $76,000.
In the cryptocurrency market, the perception that the two negative factors – the failure of the Clarity Act to pass the Senate and the Fed's first interest rate hike – have already been largely reflected in prices is cited as the background for the rebound. The overall market rose by approximately 1.2% in the last 24 hours, with some altcoins such as Near Protocol (18%), Zcash (ZEC) (17.5%), and Dash (DASH) (15%) recording double-digit gains. On Upbit, selective altcoin strength was also confirmed on a weekly basis, with Lisk (LSK) rising 189.10%, Drive (DRV) 71.71%, Gravity (G) 39.72%, Uniswap (UNI) 29.61%, and Near Protocol 26.13%.
Trading volume also increased again. According to Upbit Datalab, as of 7:57 AM, the 24-hour trading volume was 1.59 trillion won, an increase of 17.37% from the previous day, and the daily trading volume recorded 1.53 trillion won. The largest share of the 24-hour trading volume was JPY Coin (JPYC) at 17.72%, followed by XRP (Ripple) at 8.83%, Tether (USDT) at 6.80%, INTERFOLD at 6.49%, and Bitcoin at 4.57%. While investment sentiment recovered somewhat with the increase in trading volume from the previous day, the concentration of trading on a few rapidly rising assets indicates that the market as a whole has not yet seen a broad-based surge.
The key for the market for the rest of this week is whether the rebound will continue. Although the Fed's interest rate hike has entered a digestion phase, the possibility of further tightening remains a burden on risk assets. Despite the recent rise, large-scale fund outflows have been observed from U.S. Bitcoin spot ETFs, and there have been instances in past Fed tightening cycles where volatility re-expanded after an initial relief rally, so caution remains. For now, key variables that will determine the short-term direction of the domestic market appear to be whether Bitcoin maintains the $76,000 level, whether Treasury yields cross 5% again, and whether the increased trading volume on Upbit is sustained, leading to a spread of altcoin rotation.
*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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