Upbit couldn't smile... Liquidity 'missing' despite Bitcoin rebound

Upbit's trading volume 'plummets' to early 1 trillion won... Persistent wait-and-see attitude despite Bitcoin rebound

▲ Upbit, Bitcoin·Ethereum·Ripple/AI generated image

Although Bitcoin recovered 93 million won and Ethereum and XRP (Ripple) all rose simultaneously, domestic investor sentiment is struggling to recover. Prices have rebounded, but trading volume has significantly decreased, raising concerns that this rise may be a limited rebound rather than a full trend reversal.

According to Upbit as of 9:35 PM on July 3rd, Bitcoin traded at 93,462,000 won, up 0.55% from the previous day. It rose to 93,716,000 won during the day, maintaining the 93 million won range stably. Ethereum was 2,615,000 won (+1.91%), and XRP was 1,668 won (+1.58%), with all three major cryptocurrencies by domestic market cap showing an upward trend. The Upbit Composite Index rose to 9,748.97 (+0.71%), the Upbit Altcoin Index to 2,509.57 (+1.68%), and the Upbit10 Index to 2,316.46 (+1.14%), with all major indices rising simultaneously.

However, contrary to the price increase, market liquidity actually contracted. According to Upbit Datalab, the total trading volume was 1.25 trillion won, a decrease of 19.73% from 24 hours ago. The day's trading volume also remained at 776.874 billion won. In the trading volume distribution, XRP accounted for the highest proportion at 8.31%, followed by Bitcoin (7.54%), Ethereum (7.09%), and Tether (5.37%). This indicates that funds were concentrated on specific assets even amidst decreasing trading volume.

The market's bullish trend is interpreted as being influenced by expectations of easing US monetary policy and a recovery in global risk asset preferences. As concerns about US interest rate hikes have somewhat eased recently, bargain hunting flowed into risk assets, including Bitcoin, leading to a simultaneous rise in major altcoins such as Ethereum and XRP. The fact that the Upbit Altcoin Index recorded a higher rise than the Bitcoin group also shows a partial recovery in risk asset preference.

However, it is difficult to say that the market sentiment has fully recovered. A nearly 20% decrease in trading volume also means that new funds participating in the rally are limited. Generally, a strong bull market sees both price and trading volume increase, but currently, only prices are rising while trading volume is decreasing. This suggests that investors are maintaining a wait-and-see attitude rather than actively pursuing purchases.

Moving forward, the recovery of trading volume is considered a key variable for the market. If Bitcoin stably maintains the 93 million won range and trading volume also increases, expectations for further gains could grow. Conversely, if the decrease in trading volume continues, the possibility that this rebound will be limited to a short-term technical rebound cannot be ruled out. For the time being, the recovery of liquidity rather than price will likely be an important indicator determining the market's direction.

*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.*