Bit.com (Matrixport) to Wind Down Operations — User Asset Migration and Withdrawal Plan Announced
Bit.com, a crypto exchange launched in 2020 and a subsidiary of Matrixport (founded by Bitmain co‑founder Wu Jihan), announced it will orderly scale down operations and has initiated a user asset migration plan. The platform said it will publish detailed guidance via announcements, email and in‑app messages. Key operational timelines: new user registrations are closed immediately; spot trading will cease on January 31, 2026 (users can withdraw or convert assets to USDT before then; small non‑USDT balances will be auto‑converted to USDT after that date); contract trading will only permit position closures (no new openings), with funds withdrawable or migratable to Matrixport; cloud‑mining services end January 25, 2026 with prorated refunds; GoRich and other yield products must be withdrawn or cancelled by January 30, 2026. Withdraw processing times are stated as 0.5–24 hours with 24/7 asset query and withdrawal availability; large accounts receive one‑on‑one support. Assets not withdrawn by January 31, 2026 will be moved to a backup site for continued withdrawals until final cutoff on March 31, 2026. Bit.com warns users to avoid scams and never share private keys or mnemonic phrases. As part of the plan, Matrixport will offer an optional migration channel with potential new‑user benefits. The announcement reflects resource consolidation among smaller exchanges amid evolving market conditions and may prompt user flows toward Matrixport or other larger platforms.
Bearish
The announcement is likely bearish for market sentiment around Bit.com and may exert short‑term selling pressure on affected assets. Key reasons: 1) User migration and forced conversions to USDT (automatic conversion of small non‑USDT balances) increases stablecoin demand and may depress prices of illiquid tokens held on the platform. 2) Closure of spot and limitations on derivatives (only closeouts) reduce on‑exchange liquidity, potentially widening spreads and increasing volatility for listed tokens. 3) Customer uncertainty and precautionary withdrawals typically cause outflows from smaller exchanges toward larger, perceived safer platforms or custodial services. Historical parallels: prior exchange shutdowns or wind‑downs (or public insolvency events) have led to temporary selloffs of exchange‑held altcoins and increased stablecoin balances (e.g., localized selling and outflows observed during smaller exchange failures and during contagion episodes in 2022). Short term traders should expect higher volatility for assets with material balances on Bit.com and for low‑liquidity altcoins; monitor withdrawal queues, on‑chain flows, and USDT supply changes. Long term, impact is likely limited to Bit.com customers and specific illiquid tokens — systemic market disruption is unlikely if major exchanges and custodians absorb migrating users. Traders should consider: removing funds from platforms with reduced services, avoiding trading illiquid tokens on Bit.com during wind‑down, and watching Matrixport’s migration terms which could re‑aggregate liquidity if uptake is large.