Why are altcoins skyrocketing, heating up Upbit over the weekend?

▲ Upbit /AI generated image ©

Amid geopolitical uncertainties surrounding the second peace talks between the US and Iran weighing down the market, the domestic coin market over the weekend is experiencing a typical rotation trading pattern, where major cryptocurrencies take a breather while lighter altcoins surge with frightening momentum.

According to data from domestic virtual asset exchange Upbit as of 9:22 PM on the 25th, the leading cryptocurrency Bitcoin is trading at 115,874,000 won, a slight increase of 0.36% from the previous day, showing a tight bullish trend. Major market cap cryptocurrencies, including altcoin leader Ethereum, which rose 0.14% to 3,454,000 won, and XRP (Ripple), which fell 0.05% to 2,134 won, are moving sideways in a narrow range without finding a clear direction.

In contrast, the rotational buying fervor, concentrating on specific altcoins, is heating up the order books on weekend nights. In Upbit's Bitcoin market, Katana surged an astonishing 166.67%, ranking first in weekly gains, while Spark also soared 58.06%, joining the rally. In the Korean Won market, Hyperlane surged over 67.81%, breaking the 245 won mark in one go, and Axie Infinity also recorded a 38.00% increase, clearly demonstrating a market driven by individual assets.

Driven by the volatile market of small and medium-sized altcoins, overall market trading activity is also showing signs of revival starting from the weekend. According to CoinGecko, a global cryptocurrency market data aggregator, Upbit's trading volume in the last 24 hours increased by 6.1% compared to the previous day, reaching approximately $1.41558 billion. It is interpreted that speculative funds, finding it difficult to profit from large-cap assets like Bitcoin, quickly shifted to altcoins in pursuit of short-term returns, driving the overall trading volume.

Experts attribute the primary cause of this abnormal market trend to the strong uncertainty surrounding the second US-Iran talks. With geopolitical risks in the Middle East not fully resolved and the Federal Reserve's monetary policy direction remaining ambiguous, investors who find it burdensome to tie up large amounts of capital in heavy large-cap assets are turning to short-term altcoin trading for easier profit realization.

The market expects Bitcoin's stagnant sideways movement to continue for some time, until major macroeconomic indicators are released or a dramatic resolution to the Middle East issue is reached. In the absence of significant positive catalysts, the altcoin pumping rally on Upbit is expected to persist for a while, but investors are advised to exercise extreme caution, as assets rising solely on supply and demand without fundamental backing can experience sudden sharp drops as profit-taking pressure floods the market.

*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.*