According to CoinGecko, the crypto market has entered a “sustained crypto winter” as spot trading volumes on centralized crypto exchanges sharply declined in the first quarter of 2026.
CoinGecko said in a report on Thursday that the market capitalization of cryptocurrencies fell by more than 20% in the first quarter as “bearish momentum from late 2025 collided with global geopolitical instability.”
This caused the top 10 concentrated exchanges by spot trading volume to drop by 39% compared to the quarter ended March, from $4.5 trillion in the fourth quarter of 2025 to $2.7 trillion.
The decline comes as the cryptocurrency market struggles to maintain strong momentum after Bitcoin (BTC) hit a record high of more than $126,000 six months ago, as the broader market reacted to concerns about an economic slowdown and uncertainty surrounding the fallout from February’s US-Israeli attack on Iran.
According to CoinGecko, March was the “weakest month” with trading volume of $800 billion, the lowest level since November 2023.
CoinGecko said the crypto market contraction has been exacerbated by the appointment of Kevin Warsh as chairman of the US Federal Reserve, which signals a “possible hawkish shift in US monetary policy.”
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It added that daily trading activity across the cryptocurrency market “significantly decreased” in the first quarter, with an average daily trading volume of $117.8 billion, a 27% decrease compared to the fourth quarter of 2025.
According to CoinGecko, the top 10 spot centralized exchanges all recorded a decline in trading volume in the first quarter, with HTX (formerly Huobi) posting the “biggest slump” quarter-over-quarter, with trading volume down 55% to $133.6 billion.
The paper said Bitcoin fell 22% in the first quarter and “continues to underperform all assets, even as U.S. stock indexes such as the Nasdaq and S&P 500 fell -7.1% and -4.8%, respectively, their worst quarterly returns since 2022.”
Big question: Should I sell my Bitcoin for a nickel to get a 43% profit?
