Bithumb Suspends NEO and GAS Deposits Ahead of Mainnet Upgrade Amid Market Fear

VADODARA, January 27, 2026 — South Korean cryptocurrency exchange Bithumb will temporarily suspend deposits and withdrawals for Neo (NEO) and Gas (GAS) starting February 3 at 9:00 a.m. UTC. This latest crypto news follows the exchange's announcement that the suspension supports an upcoming Neo mainnet upgrade. Market structure suggests this creates a temporary liquidity vacuum during a period of elevated market fear.

Investigation: Bithumb's Strategic Suspension Timeline

According to Bithumb's official statement, the exchange will halt all NEO and GAS deposit and withdrawal functions precisely at 9:00 a.m. UTC on February 3. The suspension affects only these two assets on the Bithumb platform. Trading of NEO and GAS pairs will continue uninterrupted during this period. This creates a classic liquidity grab scenario where users cannot move assets off-exchange.

Bithumb cited "support for an upcoming upgrade to the Neo mainnet" as the technical rationale. Consequently, the exchange needs to ensure wallet compatibility with the new protocol changes. Historical cycles suggest such suspensions typically last 24-72 hours, though Bithumb has not specified a restoration timeline. This mirrors similar technical maintenance events seen during Ethereum's Shanghai upgrade in 2023.

Market Context & Historical Precedent

Market context reveals this suspension occurs during a period of significant market stress. The Global Crypto Fear Index currently sits at 29/100, indicating extreme fear among market participants. Historically, exchange suspensions during fear periods have amplified volatility. Similar to the 2021 correction, liquidity constraints often precede sharp price movements.

, Bithumb has executed similar operations recently. The exchange previously suspended DYDX deposits for network upgrades amid similar market conditions. This pattern suggests Bithumb maintains a conservative approach to technical transitions. In contrast, other Korean exchanges like Coinone have continued listing new assets despite market fear, as seen with their recent SENT listing against Korean won.

Related developments in the Korean market include Bybit's listing of USAT spot trading pairs and warnings from the Bank of Korea governor about won-pegged stablecoins potentially triggering capital flight. These events collectively paint a picture of cautious institutional behavior in Asian markets.

Technical Architecture & Price Action

Technical architecture analysis reveals critical levels for NEO and GAS. According to Neo's official documentation on mainnet upgrades, such transitions typically involve consensus mechanism adjustments and smart contract enhancements. Market structure suggests the suspension creates a temporary order block where liquidity pools become fragmented.

Price action shows NEO currently testing its 200-day moving average at $14.20. The asset faces immediate resistance at the $15.80 level, which represents a previous Fair Value Gap (FVG). Volume profile analysis indicates weak accumulation below $13.00. A break below the Fibonacci 0.618 support at $12.50 would invalidate the current structure.

GAS exhibits similar technical characteristics with key support at $3.40. The Relative Strength Index (RSI) for both assets remains in neutral territory at 45-50, suggesting neither overbought nor oversold conditions. However, the suspension could trigger a gamma squeeze if arbitrage opportunities emerge between exchanges.

By The Numbers

Why It Matters

This suspension matters because it affects liquidity during a critical technical transition. According to on-chain data, Korean exchanges represent approximately 15% of NEO's global trading volume. The temporary removal of Bithumb's liquidity creates a supply-demand imbalance. Market analysts note similar events have preceded 5-10% price swings in past cycles.

Institutional liquidity cycles suggest such suspensions force market makers to adjust their positions. Retail market structure often reacts negatively to deposit freezes, fearing potential exchange issues. However, legitimate technical upgrades typically resolve without incident. The Neo Foundation's upgrade documentation indicates this is a planned infrastructure improvement rather than an emergency response.

Expert Commentary

"Exchange suspensions for mainnet upgrades represent standard operational procedure in cryptocurrency markets. The timing during a fear period amplifies market impact, but historical precedent suggests minimal long-term disruption. Market participants should monitor on-chain migration metrics during the transition period."— CoinMarketBuzz Intelligence Desk

Market Outlook & Price Scenarios

Market outlook depends on successful mainnet migration and broader market sentiment. Two data-backed technical scenarios emerge from current market structure.

• Bullish Invalidation Level: NEO must break above $15.80 resistance to confirm trend reversal. This level represents the upper boundary of the current Fair Value Gap and would signal renewed accumulation.
• Bearish Invalidation Level: NEO must hold $12.50 Fibonacci support to maintain structural integrity. A break below this level would indicate further downside toward the $11.20 volume node.

The 12-month institutional outlook remains cautiously optimistic. Successful mainnet upgrades typically strengthen network fundamentals. Historical patterns indicate assets often recover suspension-related volatility within 2-3 weeks. For the 5-year horizon, robust protocol upgrades enhance long-term viability against competing smart contract platforms.