Bithumb Halts SEI Transfers for Mainnet Upgrade Amid Extreme Market Fear

VADODARA, January 30, 2026 — South Korean crypto exchange Bithumb will temporarily suspend deposits and withdrawals for Sei (SEI). The latest crypto news confirms the halt starts at 9:00 a.m. UTC on February 3. Bithumb cites support for an upgrade to the Sei mainnet. Market structure suggests this operational pause coincides with broader market stress. Bitcoin trades at $82,292, down 7.00% in 24 hours. The Crypto Fear & Greed Index hits 16/100, signaling Extreme Fear.

Investigation: Bithumb's SEI Suspension Details

Bithumb announced the suspension on January 30, 2026. Deposits and withdrawals for SEI will halt at 9:00 a.m. UTC on February 3. The exchange attributes this to supporting a Sei mainnet upgrade. According to the official announcement, trading for SEI will continue unaffected. This move follows standard protocol for network upgrades. Exchanges often suspend transfers to prevent transaction failures or loss of funds during chain updates. Market analysts note the timing aligns with heightened market volatility. Consequently, liquidity for SEI on Bithumb may face temporary constraints.

Market Context & Historical Precedent

Historically, mainnet upgrades trigger short-term price volatility. For instance, Ethereum's London hard fork in 2021 caused brief dislocations. In contrast, the current environment features extreme macro stress. Bitcoin broke below the $83,000 support level this week. This reflects broader risk-off sentiment across digital assets. , recent futures liquidations exacerbate market fear. Related developments include $777 million in futures liquidations and Bitcoin's breakdown below $83,000. Underlying this trend is a liquidity grab by institutional players. Market structure suggests these events often precede consolidation phases.

Technical Architecture & Price Action

SEI's price action will test key technical levels post-upgrade. Market structure suggests watching the Fibonacci 0.618 retracement level near $0.45. This level acted as strong support in Q4 2025. On-chain data indicates increased exchange outflows for SEI ahead of the suspension. This suggests some holders are moving tokens off exchanges, possibly anticipating upgrade-related volatility. For Bitcoin, the breakdown below $83,000 invalidated a previous order block. The next critical support sits at the $82,000 psychological level. A breach below could target the 50-day moving average near $80,500. RSI readings for both assets hover in oversold territory. This often precedes short-term bounces or further capitulation.

By The Numbers

Why It Matters

This event matters for institutional liquidity cycles. Exchange suspensions during upgrades can create fair value gaps (FVGs). These gaps occur when price discovery halts temporarily. Upon resumption, sharp moves often fill these gaps. For retail traders, it highlights operational risks in altcoin investing. Market structure suggests such pauses can lead to liquidity crunches. , the timing amid extreme fear amplifies downside risks. According to on-chain data from Glassnode, exchange balances for SEI have declined 8% this month. This indicates pre-upgrade caution. In the 5-year horizon, seamless upgrades become critical for blockchain adoption. Projects like Sei must demonstrate robustness to attract capital.

Expert Commentary

Market suspensions during upgrades are standard but risky in volatile conditions. The key is whether the upgrade enhances scalability or security. For SEI, this mainnet update likely involves throughput improvements. However, with Bitcoin breaking support, altcoins face amplified selling pressure. Traders should monitor volume profile changes post-resumption.

— CoinMarketBuzz Intelligence Desk

Market Outlook & Price Scenarios

Two data-backed technical scenarios emerge. First, a successful upgrade could trigger a relief rally for SEI. This scenario requires Bitcoin to stabilize above $82,000. Second, upgrade delays or bugs could exacerbate selling. This scenario aligns with continued extreme fear.

• Bullish Invalidation Level: SEI must reclaim $0.55 resistance post-upgrade. This level marks the previous order block. A break above confirms trend reversal and invalidates bearish structure.
• Bearish Invalidation Level: Bitcoin must hold $82,000 support. A daily close below this level invalidates the current consolidation. It would signal further downside toward $80,500.

The 12-month institutional outlook hinges on upgrade success. Historically, successful mainnet upgrades boost long-term valuation. For example, Ethereum's post-merge issuance reduction fueled its 2023 rally. Sei's upgrade could enhance its position in the competitive Layer-1 space. However, macro conditions remain a headwind. Federal Reserve policy, as tracked on FederalReserve.gov, will influence overall crypto liquidity.