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Risk Assets 'Cheer' as Hormuz is Unlocked... Upbit Bitcoin Nears 115 Million Won During Trading
▲ Upbit/AI generated image ©
As geopolitical tensions in the Middle East ease, global risk asset preference is rapidly recovering. While the New York stock market successively broke all-time highs overnight, the 'top 3' coins, including Bitcoin, also showed a sharp surge on Upbit, the largest virtual asset exchange in Korea, exuding intense excitement.
As of 5:55 AM on the 18th, Bitcoin (BTC) is trading at 113.85 million won on Upbit's KRW market, up 2.77% from the previous day. Particularly, during intraday trading, strong buying pushed it up to 114,891,000 won, nearly breaking the 115 million won mark. Daily trading volume alone exceeded 287.3 billion won.
Major coins ranked 2nd and 3rd by market capitalization also showed strong accompanying gains. Ethereum (ETH) rose 2.91% to 3,568,000 won, and XRP (Ripple) increased by 1.73% to 2,179 won. The Upbit Composite Index (UBMI), which reflects the overall trend of the virtual asset market, rose 2.17% from the previous day to 11,665.11, with both the Bitcoin Group (2.73%) and Ethereum Group (2.90%) indices showing clear upward curves. Among individual altcoins, Tottenham Hotspur (SPURS) recorded an astonishing surge of over 350% in a week, indicating that investor sentiment has regained warmth.
This surge in the virtual asset market was directly triggered by the 'Middle East thaw' mood that heated up Wall Street. On the 17th (local time), Iran announced the full opening of the Strait of Hormuz, a key bottleneck for global logistics, to commercial vessels, in line with the 10-day ceasefire agreement between Israel and Lebanon. Furthermore, news spread that the US and Iran were close to reaching a deal to exchange the release of $20 billion in frozen funds for the abandonment of enriched uranium stockpiles.
As the immense uncertainties of war and surging oil prices receded, the market immediately cheered. The Dow Jones Index surged 1.79%, and the S&P 500 Index broke the 7,100 mark for the first time ever. The tech-heavy Nasdaq Index also recorded its longest consecutive winning streak since 1992. The warm breeze that heated up the stock market and massive liquidity flowed directly into the virtual asset market, driving up coin prices.
The outlook for the virtual asset market in the future is a mix of optimism and caution. The opening of the Strait of Hormuz led to a sharp drop in international oil prices, reducing concerns about inflation re-igniting, which in turn is fueling expectations for interest rate cuts by the US Federal Reserve (Fed). Indeed, according to the Chicago Mercantile Exchange (CME) FedWatch Tool, the probability of an interest rate cut by year-end rose from 25.9% to 37.3% from the previous day. Interest rate cuts are the strongest upward momentum for risk assets like Bitcoin.
However, there are also significant voices cautioning against overly optimistic forecasts. Some Wall Street experts are warning of potential short-term price corrections, stating that the financial market has shifted from oversold to overbought at the fastest pace ever. Furthermore, analysis suggests that the fuse has not been completely removed, as Israel launched airstrikes on southern Lebanon less than a day after the ceasefire took effect, and gaps remain in the detailed ceasefire conditions between the US and Iran, meaning sudden geopolitical woes could freeze investor sentiment at any time.
*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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