Coins that soared sharply fell sharply in the afternoon due to profit-taking selling

Glassnode: "On May 18, BTC Spot Buying Reached $45 Million"
BTC Touches $106,000 in the Morning, Then Drops to $102,000
Altcoins Record Average 5% Decline on May 19 Following BTC Drop
Amid US Credit Downgrade, BTC Rise Sparks "BTC as Safe Haven" Narrative

Bitcoin (BTC) broke through $106,000 on May 19 with strong spot buying before entering an afternoon correction.

On-chain analysis platform Glassnode claimed that daily Bitcoin buying on Coinbase reached $45 million on May 18, with spot market demand significantly exceeding derivatives demand.

The Glassnode report explained that "the current Bitcoin is accumulating buying pressure above $93,000, creating a step-by-step price increase structure".

Bitcoin's rise is drawing attention as it occurred at the moment the US credit rating was downgraded. On May 16, global credit rating agency Moody's downgraded the US credit rating from 'Aaa' to 'Aa1' for the first time in 108 years.

With Bitcoin rising despite the US credit downgrade, there are interpretations that the view of Bitcoin as a safe asset like gold is spreading in the asset market.

On the afternoon of May 19, Bitcoin and altcoins began to decline amid profit-taking sell-offs. Bitcoin dropped to $102,000, and many altcoins fell by about 5%.

◇Bitcoin = At 4 PM on May 19, the Bitcoin price on Upbit was 146.3 million won. Bitcoin dominance was 63.96%.

According to on-chain analysis platform Sigbit, the long and short betting ratio in the Bitcoin futures market was 47.20% and 52.90%, respectively.

As Bitcoin's price rose even at the moment of the US credit downgrade, analysis suggests that Bitcoin will be more recognized as a safe asset.

Kim Yu-min, a researcher at Hanwha Investment & Securities, said, "Even during the stock market adjustment this year, Bitcoin's decline was not significantly larger compared to Nasdaq, indicating a decreasing correlation with tech stocks," and "Meanwhile, the correlation between Bitcoin and gold is expanding, highlighting Bitcoin's safe asset characteristics".

He added, "Although the US and China have temporarily mitigated tariff impacts through negotiations, market volatility is likely to continue long-term," and "If investing in safe assets, consider Bitcoin instead of gold, which has entered an overheated zone".

◇Rising Coins = At 4 PM on May 19, PUNDIX recorded the largest increase, rising about 1% from 24 hours earlier. PUNDIX had been surging for three consecutive days from April 29 to May 3.

PUNDIX is a project operating a P2P payment system that provides XPOS, a digital asset payment and transaction point-of-sale device to various retailers, enabling users to buy and sell products through digital assets. The PUNDIX token is used for XPOS payments and incentives.

◇Fear and Greed Index = The Alternative digital asset Fear-Greed index is at 74 points, entering the 'Greed' stage. The greed stage is characterized by increased price volatility and trading volume, indicating a potential price rise. Caution is advised for selling due to the high likelihood of short-term peak formation.

The cryptocurrency Relative Strength Index (RSI) provided by Sigbit recorded 44.8, in a 'neutral' state. RSI measures the relative strength between upward and downward price pressures and indicates overbought and oversold levels for a specific asset.

Reporter Kwon Seung-won ksw@blockstreet.co.kr