Crypto in Sustained Winter as Q1 CEX Volumes Drop

The cryptocurrency market is experiencing a "sustained crypto winter" as trading volumes on centralized exchanges (CEXs) plummeted by 39% in the first quarter of 2026. This decline, from $4.5 trillion to $2.7 trillion, marks the lowest quarterly volume since late 2025. March was particularly weak, with $800 billion in trading volume, the lowest since November 2023. Factors contributing to this downturn include bearish momentum from late 2025, global geopolitical instability, fears of an economic slowdown, and uncertainty surrounding US-Israeli strikes on Iran. The nomination of Kevin Warsh as US Federal Reserve chair, signaling a potential hawkish shift in monetary policy, also exacerbated the contraction. Bitcoin itself saw a 22% drop in Q1, underperforming major US equity indexes. All top 10 CEXs by spot volume experienced declining volumes, with HTX (formerly Huobi) seeing the largest slump of 55%.

(Source：Cointelegraph)