The cryptocurrency market has entered a “prolonged crypto winter,” according to CoinGecko, as spot trading volumes on centralized exchanges dropped sharply in the first quarter of 2026.
Market capitalization fell by more than 20% during the period, as “bearish momentum from late 2025 collided with global geopolitical instability,” the firm said in a report released Thursday.
As a result, the top 10 centralized exchanges by spot volume recorded a 39% decline in trading activity, falling to $2.7 trillion in the quarter ending March, down from $4.5 trillion in the previous quarter.
The downturn follows a struggle to sustain bullish momentum after Bitcoin surged to a record above $126,000 six months earlier, with markets weighed down by concerns over an economic slowdown and uncertainty surrounding the fallout from U.S.-Israeli strikes on Iran in February.
March was the weakest month of the quarter, with trading volume falling to $800 billion—the lowest level since November 2023, according to CoinGecko.
The firm said the downturn was exacerbated by Kevin Warsh’s nomination as U.S. Federal Reserve chair, signaling a potentially more hawkish shift in monetary policy.
Daily trading activity also declined sharply, with average volumes dropping 27% quarter-on-quarter to $117.8 billion.
All of the top 10 spot centralized exchanges posted lower volumes, with HTX (formerly Huobi) recording the steepest decline—down 55% to $133.6 billion.
Bitcoin fell 22% over the quarter, underperforming other assets even as U.S. equity indexes such as the Nasdaq and S&P 500 posted declines of 7.1% and 4.8%, respectively—their worst quarterly performances since 2022.
