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A warm breeze is once again blowing through the frozen virtual asset market, thanks to news of easing geopolitical risks from Iran. With reports that Iran has delivered a new negotiation proposal to end the war with the United States, major coins, including Bitcoin (BTC), are showing clear strength on Upbit, the largest exchange in Korea.
As of 10:29 PM on the 1st, Bitcoin is trading at 116,052,000 KRW on the Upbit KRW market, up 1.97% from the previous day, showing strong upward momentum. Bolstered by the rally of the market leader, major altcoins by market capitalization are also rising: Ethereum (ETH) is up 1.54% to 3.42 million KRW, XRP (XRP) is up 1.18% to 2,061 KRW, and Dogecoin (DOGE) has jumped 3.16% to 163 KRW.
However, due to the Labor Day holiday, the overall trading activity in the market is somewhat sluggish. According to CoinGecko data, a virtual asset market aggregation site, Upbit's 24-hour trading volume decreased by 12.8% compared to the previous day at the same time, indicating a mixed sentiment of observation.
Nevertheless, despite the overall decrease in trading volume, a 'picking out the gems' market is emerging, with strong demand concentrated in specific altcoins. According to Upbit's weekly gain rate data, NKN (NKN) surged by 141.67%, ORCA (ORCA) by 117.27%, and GAMEBUILD (GAME2) by 100.00%, with the trading volume of some altcoins exploding and drawing market attention.
The key reason why the virtual asset market collectively turned bullish today is undoubtedly the easing of war fears originating from the Middle East. According to Iran's state news agency IRNA, Iran delivered a full negotiation proposal to the United States to end the war through Pakistan, a mediating country, last night. As Iran's foreign ministry emphasized that "the top priority in negotiations with the United States is to end the war and achieve lasting peace," expectations that the escalating conflict between the two countries could be resolved strongly stimulated risk asset preference.
The continuation of the virtual asset market rally in the future depends on the US response to this negotiation proposal. If a dramatic compromise is reached, with Iran offering the opening of the Strait of Hormuz and the resumption of nuclear negotiations as cards, Bitcoin's upward trend is expected to become even more solid.
However, the fact that former US President Donald Trump is strongly demanding the full repatriation of Iran's highly enriched uranium and has been briefed on new military operation plans by the US military command, holding leverage cards, remains a persistent concern. Until macroeconomic geopolitical risks are completely resolved, market volatility could fluctuate significantly depending on news flow, requiring investors to approach the market cautiously.
*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.*
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