Upbit and Bithumb Trading Volumes Drop 40%+ as South Korea Cools
Upbit and Bithumb trading volumes have fallen by more than 40% versus the second half of 2025, pointing to a clear cooldown in South Korea’s crypto market.
According to CoinMarketCap data cited by Electronic Times Internet, Upbit’s Q1 2026 daily average trading volume fell 38.8% to about $1.55B from $2.53B in H2 2025. Bithumb declined even more sharply, dropping 44% to roughly $647.31M. From Jan 1 to May 20, Upbit’s daily average volume was down 45.5% (vs the H2 2025 baseline), while Bithumb fell 48.5% to around $599.77M per day.
The article links the slowdown to reduced retail speculation, regulatory uncertainty around South Korea’s crypto policy, and weaker risk appetite after late-2025 activity. It also notes the lack of major bullish catalysts in early 2026. Because trading volume is the key revenue driver for centralized exchanges (transaction fees), the volume contraction directly pressures exchange profitability and delays returns on recent compliance, customer acquisition, and technology investments.
For traders, the key takeaway is that Upbit and Bithumb trading volume weakness can tighten liquidity and reduce demand on one of the world’s most active crypto markets, which may spill over into broader sentiment. Overall, Upbit and Bithumb trading volumes falling 40%+ is a sign of a cyclical—potentially structural—shift in participation.
Bearish
This news is bearish because the reported 40%+ drop in Upbit and Bithumb trading volume signals weaker spot activity and liquidity in one of the most important crypto venues in Asia. Centralized exchanges earn primarily from transaction fees, so sustained volume compression typically translates into margin pressure, reduced competitive intensity, and less price discovery.
In past market cycles, similar “volume cooling” periods often preceded either a consolidation phase or a deeper risk-off move—especially when no clear bullish catalyst appears. Here, the article cites reduced retail speculation and South Korea regulatory uncertainty, both of which can keep order flow muted even if prices stop falling. Short term, traders may face thinner books, wider spreads, and slower rebounds. Long term, if regulatory clarity or new catalysts do not arrive, lower volumes can become structural, encouraging market participants to rotate to more liquid venues or shift to alternative trading strategies.
While there is a possibility that volumes recover with renewed demand, the current data points to demand weakness rather than an imminent upswing, making the near-term setup more likely to dampen upside momentum.