The cryptocurrency market has entered a 'sustained crypto winter' according to a new report from market data aggregator CoinGecko. The first quarter of 2026 saw a severe contraction, with the total crypto market capitalization falling by more than 20%.
Spot trading volumes on the top 10 centralized exchanges (CEXs) collapsed by 39% quarter-on-quarter, dropping from $4.5 trillion in Q4 2025 to $2.7 trillion in Q1 2026. Average daily trading volume across the entire market also declined by 27% to $117.8 billion. March was the weakest month, with only $800 billion in trading volume recorded—the lowest level since November 2023.
CoinGecko attributed the downturn to a confluence of factors. Bearish momentum from late 2025 collided with global geopolitical instability, including fears of an economic slowdown and uncertainty following US-Israeli strikes on Iran in February. The market has struggled to maintain positive momentum since Bitcoin (BTC) hit a record high above $126,000 six months ago.
The report noted that the contraction was worsened by the nomination of Kevin Warsh as US Federal Reserve chair, which signaled a potential hawkish shift in US monetary policy. All top 10 exchanges saw declining volumes, with HTX (formerly Huobi) experiencing the steepest drop of 55% to $133.6 billion.
Bitcoin itself fell approximately 22% during the quarter, underperforming major US equity indexes like the NASDAQ (-7.1%) and S&P 500 (-4.8%). This suggests investors moved away from speculative assets more aggressively amid the broader market downturn.
