CEX Trading Volumes Plunge 39% as Crypto Enters Sustained Winter

The cryptocurrency market has entered a period of sustained decline, with spot trading volumes on centralized exchanges (CEX) plummeting 39% during the first quarter of 2026. According to data from CoinGecko, the top 10 exchanges saw volumes drop to $2.7 trillion, a significant decrease from the $4.5 trillion recorded in the final quarter of 2025. This contraction follows a period of extreme volatility. While Bitcoin reached a record high of $126,000 six months ago, the market has since struggled against a backdrop of global economic slowdown fears and geopolitical instability, specifically following US-Israeli strikes on Iran in February. March marked the nadir of the quarter, recording just $800 billion in trading volume, the lowest level since November 2023. Average daily trading activity across the sector fell 27% to $117.8 billion. Among the top exchanges, HTX experienced the most severe decline, with volumes sliding 55% to $133.6 billion. The downturn was further exacerbated by the nomination of Kevin Warsh as US Federal Reserve chair, which investors interpreted as a signal of a more hawkish monetary policy shift. Consequently, Bitcoin fell 22% in Q1, significantly underperforming the NASDAQ and S&P 500, which declined by 7.1% and 4.8%, respectively, marking their worst quarterly returns since 2022.