Middle East Tensions Resurge…Upbit Market Sees Fear Selling Erupt

▲ Upbit Market Situation: Why did Bitcoin, XRP, and Ethereum all falter together? Is it a simple correction or a trend reversal?/AI Generated Image ©

As tensions in the Middle East escalated again, the Upbit market immediately froze. Following news that the US military had launched an airstrike on southern Iranian regions near the Strait of Hormuz, Bitcoin and major altcoins simultaneously showed a bearish trend.

According to Upbit data as of 10:08 AM on May 26, Bitcoin (BTC) was trading at 113,963,000 KRW, down 0.81% from the previous day. The intraday high was 114,966,000 KRW, and the low was 113,838,000 KRW. The 24-hour trading volume on Upbit was approximately 81.45003 billion USD. Across the market, risk aversion sentiment strengthened, and investor sentiment cooled rapidly.

Most altcoins also showed a downward trend. XRP (Ripple) fell by 0.75% to 1,993 KRW, and Ethereum (ETH) dropped by 0.99% to 3,108,000 KRW. Solana (SOL) decreased by 1.03% to 125,100 KRW, and Dogecoin (DOGE) also showed weakness, falling by 1.32% to 150 KRW. In particular, tokens related to Near Protocol (NEAR) and Ethereum Name Service (ENS) saw relatively larger declines, spreading selling pressure across altcoins.

The sharp market reversal is attributed to the re-ignition of military tensions between the US and Iran. According to Reuters, the US Central Command announced on May 25 (local time) that it had launched airstrikes on targets in southern Iranian regions near the Strait of Hormuz as an act of self-defense. The targets were explained to be Iranian vessels attempting to lay mines and missile launchers. Previously, the US and Iran were in the final stages of negotiations over a draft 60-day nuclear negotiation Memorandum of Understanding (MOU) focusing on reopening the Strait of Hormuz and ceasing hostilities, but this airstrike has brought geopolitical risks back into focus.

However, some market observers believe it is not yet a complete panic market. Bitcoin, based on Upbit, is maintaining support at the 113 million KRW level, and some investors are also noting the possibility of bargain hunting if the Middle East risk proves to be a short-term shock. In fact, large-cap assets such as Bitcoin, Ripple, and Near Protocol still occupy the top ranks in Upbit's KRW market trading volume, indicating a wait-and-see trading atmosphere.

The future direction of the market is likely to be determined by Iran's response level and the continuation of US-Iran nuclear negotiations. The market anticipates that if concerns about a blockade of the Strait of Hormuz resurface, volatility across all risk assets could increase. Conversely, if both sides maintain a negotiation phase instead of escalation, there is a prospect that attempts to recover losses, especially for Bitcoin, could emerge.

*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.*