Cryptocurrency Trading Volume Plummets: Company Upbit and Company Bithumb See 60% December Crash

Overview: Recent data shows a striking decline in trading activity on South Korea's largest cryptocurrency platforms. According to a Company Bizwatch report, the combined trading volume on Company Upbit and Company Bithumb dropped by roughly 60% in December (December 1–22) compared to November. This synchronized slump, with Company Upbit falling to $25.91 billion and Company Bithumb to $12.45 billion, suggests a broader market contraction rather than exchange-specific issues.

What the Numbers Mean: The decline is dramatic: Company Upbit's volume fell about 60.6% from $65.86 billion in November, and Company Bithumb's volume decreased 60.4% from $31.49 billion. These figures point to a sharp reduction in liquidity and participation during a key year-end window, with potential consequences for price stability and trade execution.

Contributing Factors: Several overlapping dynamics likely produced this crash in volume. First, the broader crypto market has been relatively muted, lacking major bullish catalysts seen earlier in the year. Second, the holiday and year-end accounting period typically depresses trading as institutions close books and retail traders step back. Third, heightened regulatory scrutiny in South Korea has likely encouraged a more cautious stance among local traders. Together, these elements created a near-perfect storm for reduced on-exchange activity.

Market Implications: While a 60% drop is alarming on the surface, context is essential. Markets inherently cycle through phases of high activity and consolidation. This contraction may represent a temporary consolidation where prices pause and order books thin out. The real risk during low-volume windows is amplified price slippage and the larger impact of sizeable orders, which can move prices more dramatically on thinner liquidity.

Practical Guidance for Traders and Investors: For traders, awareness of exchange-specific liquidity is crucial. Market orders may incur unfavorable fills during thin periods; consider using limit orders and splitting large trades. For long-term investors, low-volume phases can be an opportunity for research and strategic position sizing rather than impulsive trading. Dollar-cost averaging, careful risk management, and monitoring order book depth are sensible tactics.

Is This a Local or Global Trend? The report focuses on South Korea, but similar seasonal declines often appear globally in late December as holiday slowdowns affect both retail and institutional participants. That said, regulatory environments differ, so local developments—especially in highly engaged markets like South Korea—can amplify or prolong local volume contractions.

Outlook and What to Watch: Key indicators to monitor in the coming weeks include exchange-specific volumes, overall market capitalization, and the re-emergence of catalysts (institutional announcements, macroeconomic shifts, or major protocol upgrades). Historically, volume often rebounds after the new year, but recovery depends on broader market sentiment and concrete catalysts. Tracking Bitcoin and Ethereum order flows and correlation across global exchanges will offer signals on whether this is a synchronized pause or the start of a longer consolidation.

Conclusion: The 60% plunge in trading volume on Company Upbit and Company Bithumb is a significant market signal that highlights how seasonal factors, broader sentiment, and regulatory pressure can converge to thin liquidity. For market participants, the event is a reminder to respect cycle dynamics, prioritize liquidity management, and plan trades with an awareness of changing execution risk.

References & Further Reading: Original coverage first appeared on Company BitcoinWorld, based on data reported by Company Bizwatch. For context on price dynamics and institutional adoption, see additional reports on Bitcoin and Ethereum trends.