Upbit Holds Its Breath on Bitcoin, Altcoins Targeting Niches See Transaction Volume Explode!

Major Coins 'Frozen' Amid US-Iran Uncertainty and FOMC Caution... Upbit Now Experiencing an 'Altcoin Rotation' Frenzy

▲ Upbit, Bitcoin, XRP ©

With the second round of US-Iran negotiations shrouded in thick fog and a massive event, the Federal Open Market Committee (FOMC) meeting, approaching next week, supply and demand in the virtual asset market are diverging dramatically. Heavyweight leaders like Bitcoin (BTC) and Ethereum (ETH) are showing boring sideways movement with sharply decreased trading volumes, while speculative funds targeting niches are fiercely flocking to individual altcoins, creating a peculiar phenomenon of pushing up the overall market's trading volume.

'Ice Age' for Major Coins, Leaders Stalled

As of 9:40 AM on the 26th, according to Upbit, South Korea's largest virtual asset exchange, Bitcoin, the market leader, is trading at 115,671,000 KRW, down 0.02% from the previous day, trapped in a tight consolidation. Ethereum, the second-largest by market cap, is up 0.06% at 3,457,000 KRW, and XRP (Ripple) remains unchanged at 2,123 KRW. Major coins like Solana are also treading water, having lost clear directional momentum.

Particularly noteworthy is the 'sharp decline in trading volume' for major coins. Bitcoin's 24-hour transaction volume on Upbit has shrunk to approximately 68 billion KRW, clearly showing extreme wait-and-see sentiment.

Altcoins Fill the Void Left by Leaders... Driving Upbit's Weekend Trading Volume

However, the sluggishness of major coins did not signify a downturn for the entire market. While large capital held its breath, an explosive 'rotational trading' trend, centered on lighter small and medium-sized altcoins, swept the order books over the weekend.

Indeed, according to data from CoinGecko, a global cryptocurrency market data aggregator, Upbit's total 24-hour transaction volume surged by 10.8% compared to the previous day, despite Bitcoin's tedious sideways movement.

This is entirely thanks to short-term speculative funds flowing into altcoins. In the KRW market, Orca (ORCA) surged by 16.81% to 1,939 KRW, and Axie Infinity (AXS) amassed an overwhelming transaction volume of 324.6 billion KRW, dwarfing Bitcoin's volume. Volatility in the BTC market is even more intense. In terms of weekly gains, Centrifuge (CFG/BTC) skyrocketed by 148.07%, Tottenham Hotspur (SPURS/BTC) by 72.17%, and Katana (KAT/BTC) by 66.67%, with individual tokens jumping around and absorbing market liquidity.

Dilemma Created by Uncertainty... What's the Market Outlook This Week?

Behind this extreme phenomenon of 'major coin neglect, altcoin strength' lies layers of macroeconomic uncertainty.

First, the second round of US-Iran negotiations, which had raised hopes for a resolution, has effectively stalled, leaving geopolitical risks in the Middle East unresolved. Added to this is the fear that Federal Reserve Chairman Jerome Powell might make hawkish (preferring monetary tightening) remarks ahead of the upcoming April FOMC meeting. This is the result of investors, burdened by tying up large capital in Bitcoin in an uncertain macro environment, turning to easy-to-enter-and-exit short-term altcoin trading.

Virtual asset industry experts predict, "The current market is a typical 'wait-and-see' environment where prices are determined solely by supply and demand in a vacuum devoid of major bullish or bearish news." They added, "It is highly likely that the tedious sideways movement of major coins and localized pumping rallies centered on altcoins will continue until the FOMC results are announced next week and the earnings of major tech stocks in the US market take shape." They also advised, "For altcoins that surge solely due to supply and demand without clear fundamentals, there's a risk of being hit with profit-taking bombs instantly depending on the FOMC results, so extreme caution against impulsive trading is necessary over the weekend."

*Disclaimer: This article is for investment reference only, and we are not responsible for investment losses based on it. The content should be interpreted for informational purposes only.*