What's the reason for the altcoin surge heating up Upbit on the weekend?

▲ Upbit /AI generated image ©

Amid geopolitical uncertainties surrounding the second peace talks between the US and Iran weighing on the market, the domestic crypto market, as it enters the weekend, is witnessing a typical rotation rally where light-bodied altcoins are surging with formidable momentum while leading cryptocurrencies take a breather.

According to data from domestic virtual asset exchange Upbit as of 9:22 PM on the 25th, Bitcoin, the market leader, is trading at 115,874,000 KRW, a slight increase of 0.36% from the previous day, showing a tight firm-but-flat trend. Major top market cap coins, including altcoin leader Ethereum, which rose 0.14% to 3,454,000 KRW, and XRP (Ripple), which fell 0.05% to 2,134 KRW, are consolidating within a narrow range without finding a clear direction.

On the other hand, the rotation rally, where buying pressure is concentrated on specific altcoins, is heating up the order books on weekend nights. In Upbit's Bitcoin market, Katana surged an astonishing 166.67%, taking the top spot for weekly gains, and Spark also joined the rally, soaring 58.06%. In the KRW market, Hyperlane surged over 67.81%, breaking the 245 KRW mark in one go, and Axie Infinity also recorded a 38.00% increase, clearly indicating a market dominated by individual altcoins.

Driven by the volatile market for small and medium-sized altcoins, overall market trading activity is also showing signs of revival as of 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. This is interpreted as speculative funds, finding it difficult to profit from large-cap assets like Bitcoin, quickly shifting to altcoins in pursuit of short-term returns, thereby driving the overall trading volume.

Experts attribute the primary cause of this abnormal market trend to the strong uncertainties surrounding the second US-Iran negotiations. 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 sums of money in heavy-weighted leading assets are turning to short-term altcoin trading, which facilitates quick profit-taking.

The market expects Bitcoin's dull consolidation to continue for the time being, until major macroeconomic indicators are released or a dramatic resolution to the Middle East issue emerges. In the absence of significant positive catalysts, the altcoin pumping relay 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 strong fundamentals can experience sudden sharp drops due to rapid profit-taking.

*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.*