Upbit investor sentiment rapidly cools amid Kospi boom…Money flowed to newly listed Solstice

▲ Upbit Coin/AI Generated Image ©

While Kospi broke its all-time high and fueled expectations of '9,000 points', the domestic cryptocurrency market showed the opposite trend. With major coins like Bitcoin (BTC), Ethereum (ETH), and XRP (Ripple) all falling, the Upbit market saw an extreme rotation of short-term speculative funds flocking to newly listed coins.

According to Upbit data as of June 1, 5:35 PM, Bitcoin was trading at 106.7 million KRW, down 1.61% from the previous day. Ethereum fell by 1.69% to 2.903 million KRW, and XRP dropped by 2.70% to 1,910 KRW. The Upbit Composite Index slipped by 1.50% to 10,831 points, and the Upbit Altcoin Index also declined by 1.95%, indicating widespread selling pressure across major assets.

In contrast, the domestic stock market continued its surge. On this day, Kospi closed at 8,788.38, up 312.23 points from the previous session, setting a new all-time high based on closing price. It even soared to the 8,874 level intraday, raising expectations for '9,000 points'. Samsung Electronics surged over 10%, breaking the 2,000 trillion KRW market capitalization for the first time, and SK Hynix also hit a new record high. Analysts suggest that remarks by Nvidia CEO Jensen Huang and expectations for AI semiconductors attracted funds to the domestic stock market.

In the cryptocurrency market, the trend of risk-on capital moving to the stock market has become more pronounced. Recently, the weakening expectations for US interest rate cuts combined with the expansion of geopolitical risks in the Middle East have diminished Bitcoin's appeal as an inflation hedge. Institutional funds are also shifting towards the AI and semiconductor-centric stock market. The Upbit Bitcoin Group Index fell by 1.58% and the Ethereum Group Index by 1.70%, numerically confirming the contraction in investor sentiment.

However, even amidst a generally bearish market, speculative funds concentrated on newly listed coins. Solstice (SLX), newly listed on this day, surged over 147% in the Upbit KRW market, entering the top ranks by trading volume. In terms of weekly gains, Solstice also dominated the market with a 149.4% jump. In addition, some altcoins such as Siacoin (SC), Stellar Lumens (XLM), Pros (PROS), and Space ID (ID) continued strong rotational trading. Analysts suggest that as the directional momentum for large-cap coins disappeared, short-term, ultra-high-risk trading funds are flocking to newly listed and small-to-medium-cap altcoins.

This week's key market variables are expected to be US employment figures and the trend of geopolitical risks in the Middle East. If Bitcoin fails to maintain its support level around 106 million KRW, further correction is possible. Conversely, the Upbit market's unique new listing effect and short-term rotation are likely to continue for some time. While the overall market is bearish, specific altcoins are still experiencing repeated short-term overheating levels of volatility, according to analysis.

*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.*