Bithumb Suspends STRK Transfers Amid Starknet Network Issues

VADODARA, January 5, 2026 — South Korean cryptocurrency exchange Bithumb has temporarily suspended deposits and withdrawals for Starknet (STRK), citing unresolved network issues. This latest crypto news event tests market structure during a period of heightened global fear sentiment, where technical disruptions can disproportionately impact altcoin liquidity profiles. According to the official announcement from Bithumb, the suspension is a precautionary measure until Starknet's block generation stabilizes, directly affecting on-chain settlement finality.

Market Context & Background

Market structure suggests exchange-level suspensions often precede short-term liquidity grabs, especially for Layer-2 tokens like STRK that rely on robust sequencer performance. Underlying this trend is the broader crypto market's current Fear & Greed Index reading of 26, indicating extreme risk aversion. Consequently, any operational hiccup is magnified, as seen in previous incidents with other scaling solutions. This mirrors the 2021 congestion events on Arbitrum, where delayed withdrawals led to significant Fair Value Gaps (FVGs) in perpetual swap markets. The Starknet ecosystem, governed by its STARK-based validity proofs, is particularly sensitive to block production delays, as outlined in Ethereum's official Layer-2 scaling documentation, which emphasizes sequencer reliability as a critical component for user experience.

What Happened?

On January 5, 2026, Bithumb issued a statement confirming the temporary halt of all STRK deposit and withdrawal functions. The exchange attributed this action to persistent network issues on the Starknet mainnet, specifically referencing block generation delays that compromise transaction finality. No specific timeline for resumption was provided, creating uncertainty for traders reliant on cross-exchange arbitrage. This development follows similar technical challenges reported by other exchanges in recent weeks, highlighting systemic stress points in Layer-2 infrastructure during high-volatility periods.

Technical Analysis & Price Action

On-chain data indicates STRK's price action has been consolidating within a narrow range between $1.90 and $2.10 prior to the announcement. The 4-hour chart shows a clear Order Block at $1.85, which now serves as a critical support zone. Volume Profile analysis reveals weak accumulation below $1.95, suggesting limited buyer interest at current levels. The Relative Strength Index (RSI) on the daily timeframe is hovering at 42, indicating neutral momentum with a bearish bias. A break below the Fibonacci 0.618 retracement level at $1.82 would confirm a structural shift. Bullish Invalidation is set at $1.85; a sustained close below this level invalidates the current consolidation thesis. Bearish Invalidation is defined at $2.15, where a breakout would signal renewed buying pressure despite the operational headwinds.

By The Numbers

Why It Matters

For institutional participants, this suspension creates immediate friction in market-making strategies, potentially widening bid-ask spreads on STRK pairs. The inability to move assets between exchanges disrupts arbitrage opportunities, leading to temporary price dislocations. Retail traders face heightened counterparty risk, as frozen funds cannot be deployed or secured during volatile periods. From a network perspective, Starknet's reliance on its sequencer for fast finality—a core feature of its Cairo-based execution environment—is now under scrutiny. Persistent block generation delays could undermine confidence in Layer-2 solutions more broadly, especially as Ethereum's upcoming Pectra upgrade aims to further optimize rollup efficiency.

Community Sentiment

Market analysts on X (formerly Twitter) are highlighting the operational risks associated with centralized exchange dependencies. One quant trader noted, "STRK's liquidity profile is fragile; any withdrawal halt triggers a gamma squeeze in derivatives." Others point to the need for improved sequencer redundancy, as suggested in Starknet's official governance forums. The prevailing sentiment among bulls is cautious, with many awaiting clarity on network stability before re-entering positions.

Price Prediction / Future Outlook

Bullish Case: If Starknet resolves its network issues within 48 hours and Bithumb re-enables transfers, STRK could reclaim the $2.10 resistance level. A successful retest of the Volume Point of Control (VPOC) at $2.05 would indicate restored confidence, potentially leading to a rally toward $2.30 as trapped liquidity seeks exit.

Bearish Case: Prolonged suspension beyond 72 hours, combined with persistent Fear sentiment, could trigger a breakdown below the $1.85 Order Block. This would open a Fair Value Gap (FVG) down to $1.70, where algorithmic sellers may target liquidity. A cascade below the 200-day moving average at $1.65 would confirm a broader downtrend, aligning with historical patterns of altcoin underperformance during exchange halts.