The cryptocurrency market has entered what analysts describe as a sustained crypto winter, according to a new report from CoinGecko, as spot trading volumes across centralized exchanges declined sharply in the first quarter of 2026.
Total crypto market capitalization dropped by more than 20% during the quarter, as bearish momentum from late 2025 combined with ongoing geopolitical instability. The top 10 centralized exchanges recorded a 39% decline in trading volume, falling to $2.7 trillion in Q1 from $4.5 trillion in the fourth quarter of 2025.
Monthly trading volumes remained relatively steady at around $1 trillion in both January and February before falling sharply in March. The month recorded approximately $800 billion in total volume, making it the weakest month since November 2023.
Bitcoin Weakness and Policy Uncertainty Add Pressure
The downturn follows a period of market cooling after Bitcoin reached an all-time high above $126,000 about six months earlier. Since then, the market has faced pressure from fears of a global economic slowdown and uncertainty following U.S.–Israeli strikes on Iran in February.
Average daily trading volume across the crypto market fell to $117.8 billion, representing a 27% decline compared to the previous quarter.
Exchange and Asset Performance Show Broad Declines
All of the top 10 centralized exchanges recorded falling volumes, with HTX experiencing the largest decline. The exchange saw trading activity fall 55% quarter-on-quarter to approximately $133.6 billion.
During the same period, bitcoin prices declined by 22%, underperforming traditional markets such as the NASDAQ Composite and the S&P 500, which fell 7.1% and 4.8% respectively, marking their weakest quarterly performances since 2022.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.