Why didn't coins rise despite the US stock market surge? Upbit trading volume falls below 1 trillion won again

▲ 'Static market' amid sharp drop in trading volume... Upbit market holds its breath. Bitcoin, XRP, and other major altcoins in a wait-and-see market / AI generated image ©

Upbit's trading volume has once again fallen below 1 trillion won, and market enthusiasm is rapidly cooling. Despite the strong performance of the US stock market in May, Bitcoin, Ethereum, and XRP all showed weakness, noticeably dampening domestic investor sentiment.

According to Upbit data as of June 1, 7:50 AM, Bitcoin traded at 108.9 million won, down 0.46% from the previous day. Although it rose to 109.9 million won during the day, it eventually fell back with a bearish candle, and the Upbit Bitcoin Group Index also dropped 0.46% to 19,565. The Ethereum Group Index fell 1.03%, showing a relatively larger decline among major coins. XRP also continued its bearish trend, indicating that the overall market is entering a consolidation phase.

Specifically, the Upbit Composite Index fell 0.50% to 11,033, and the Upbit Altcoin Index also dropped 0.58% to 2,853. Despite the US stock market maintaining a strong AI and tech-driven rally throughout May, the cryptocurrency market experienced greater profit-taking pressure. Market analysis suggests that Bitcoin's failure to stabilize around the 110 million won level after its recent surge has led to an increase in short-term selling.

However, strong rotation is still observed in individual altcoins. Top weekly gainers on Upbit included Siacoin (SC), Stellar Lumens (XLM), Pros (PROS), Aztec (AZTEC), and Space ID (ID). With short-term funds flowing into some small and medium-sized altcoins, a 'selective altcoin market' atmosphere continues. In Upbit's KRW market, Stratis, Hive, and Pundi X also showed strength, attracting short-term buying interest.

The decrease in trading volume is further amplifying market wait-and-see sentiment. According to CoinGecko, Upbit's 24-hour trading volume was approximately $988 million, a 7.8% decrease from the previous day. The recent trend of over $1 billion in trading has been broken again. This is interpreted as domestic investors refraining from aggressive new entries until market direction is confirmed.

The market this week is likely to react sensitively to US employment data and statements regarding the Federal Reserve's (Fed) interest rate path. There are also predictions that if Bitcoin fails to recover to 110 million won again, a short-term correction could continue. Conversely, if altcoin rotation is maintained despite reduced trading volume, there is a possibility that a surge in specific thematic assets could continue.

*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.*