CoinGecko Reports 39% Plunge in CEX Trading Volumes During Q1 Crypto Winter
According to CoinGecko, centralized crypto exchange trading volumes experienced a 40% downturn, culminating in March's two-and-a-half-year low for monthly volume, indicating the crypto market has entered a prolonged winter phase.
CoinGecko has declared that the cryptocurrency market has now entered a "sustained crypto winter" following a sharp decline in spot trading volumes across centralized crypto exchanges throughout the opening quarter of 2026.
During the first quarter, crypto market capitalization experienced a decline exceeding 20% as "bearish momentum from late 2025 collided with global geopolitical instability," as stated in CoinGecko's Thursday report.
This downturn resulted in the top 10 centralized exchanges measured by spot volume experiencing a 39% reduction in trading activity throughout the quarter that concluded in March, falling to $2.7 trillion compared to $4.5 trillion recorded in the fourth quarter of 2025.
This decline emerges as the cryptocurrency market has faced challenges in sustaining upward momentum following Bitcoin (BTC) reaching an all-time peak exceeding $126,000 six months prior, with the broader market responding to concerns about potential economic slowdown and ambiguity surrounding the consequences of US-Israeli strikes on Iran in February.
CoinGecko identified March as the "weakest month," registering $800 billion in trading volume, representing the lowest level observed since November 2023.
The contraction experienced in crypto markets was further exacerbated by Kevin Warsh's nomination as US Federal Reserve chair, which indicated "a potential hawkish shift in US monetary policy," according to CoinGecko.
The report further noted that daily trading activity throughout the crypto market experienced "a significant decline" during the first quarter, with average daily trading volumes reaching $117.8 billion, representing a 27% decrease when compared to the fourth quarter of 2025.
Every exchange within the top 10 spot centralized exchanges experienced declining volumes during the first quarter, according to CoinGecko, with HTX, previously known as Huobi, experiencing "the biggest slump" on a quarter-on-quarter basis as volumes decreased 55% to $133.6 billion.
The report indicated that Bitcoin experienced a 22% decline during the first quarter, "continuing to underperform all assets, despite US equity indexes such as NASDAQ and S&P 500 falling -7.1% and -4.8% respectively, their worst quarterly returns since 2022."