Despite the shadow of the second US-Iran talks... Upbit coin market "strangely strong"

▲ Upbit, Bitcoin, XRP ©

Amidst growing uncertainty in global financial markets ahead of the second US-Iran truce talks, the virtual asset market is showing a clear uptrend, exhibiting a decoupling phenomenon from the New York stock market. On Upbit, the largest exchange in Korea, major altcoins, including the leading cryptocurrency Bitcoin, are all showing an upward curve, indicating a rapid recovery in investor sentiment.

As of 6:19 AM on the 21st, Bitcoin (BTC) on Upbit's KRW market was trading at 112,297,000 KRW, up 2.07% from the previous day, easily surpassing the 112 million KRW mark. Ethereum (ETH), the leading altcoin, recorded 3,432,000 KRW, up 1.72%, while major cryptocurrencies by market capitalization, XRP (Ripple) and Solana (SOL), also settled at 2,109 KRW (up 1.49%) and 126,700 KRW (up 1.77%), respectively. The Upbit Composite Index (UBMI), which reflects the overall trend of the virtual asset market, rose 1.64% to 11,473.97.

Along with rising prices, trading vitality is also recovering. According to data from CoinGecko, a global virtual asset market aggregator, Upbit's total 24-hour trading volume at the same time reached 1.075 billion USD (approximately 1.58 trillion KRW based on the daily exchange rate), an increase of 15.2% from the previous day. The trading volume, which had sharply decreased the day before due to adverse news from the Middle East and showed a wait-and-see attitude, is now rebounding with the inflow of dip-buying, injecting warmth into the market.

This positive momentum in the coin market stands in stark contrast to the overnight decline across New York stock markets. The US stock market, including the Nasdaq index which ended its longest continuous rally of 13 trading days since 1992, entered a breather, weighed down by escalating tensions around the Strait of Hormuz and uncertainties ahead of the Islamabad talks in Pakistan. International oil prices also saw West Texas Intermediate (WTI) surge by 6.87%, but it did not cross the psychological threshold of $100, and the value of the dollar and US Treasury yields remained stable without significant fluctuations.

The decisive reason why the virtual asset market showed resilience to negative news and displayed strength is the perception that extreme war fears have already been sufficiently reflected in the market, coupled with underlying optimism for a final agreement. Market experts diagnosed that the war crisis with Iran has already been absorbed as a past event in the coin market, and investors are reluctant to excessively reflect the worst-case scenario in asset prices. Although the US President has set the truce deadline for the evening of the 22nd and issued a strong message of maritime blockade, the positive expectation that the two countries will eventually find a compromise is stimulating dip-buying and supporting the downside.

The future direction of the virtual asset market is expected to be thoroughly determined by the outcome of the imminent second truce negotiation. If a dramatic peace agreement is reached, the virtual asset market is highly likely to leverage its current decoupling recovery to launch a strong additional upward rally. However, as experts point out, the war situation can change drastically at any moment. If negotiations break down and physical clashes in the Strait of Hormuz escalate, the Upbit market could once again be engulfed in unpredictable and severe volatility, requiring thorough risk management.

*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.*