Global Retail Crypto Volumes Decline 11% in Q1 Amid Macro Headwinds

Global retail engagement with cryptocurrency contracted by 11% year-over-year during the first quarter, according to the latest Global Crypto Adoption Index from TRM Labs. This decline represents the most significant pullback in retail volumes since the 2022 bear market, bringing total quarterly activity to $979 billion. The downturn reflects a broader risk-off sentiment driven by a strengthening US dollar and elevated interest rates. These macroeconomic pressures were further exacerbated by the outbreak of conflict in Iran in late February, which disrupted global energy markets and shifted investor appetite away from high-risk speculative assets. Bitcoin (BTC) mirrored this trend, recording a 22% price decline during the quarter. This correction followed a peak above $126,000 in late 2025, as the asset struggled to maintain momentum against a backdrop of tightening monetary conditions. A stark divide has emerged between developed and emerging economies. The United States, United Kingdom, Germany, and South Korea experienced the steepest drops in volume, where crypto is primarily treated as a speculative vehicle. Conversely, Turkey saw a 7% increase in volumes, while Latin America and South Asia remained stable. TRM Labs notes that in regions with constrained monetary policies or strict capital controls, such as Venezuela, cryptocurrency is increasingly utilized as a 'shadow dollar system' and a reliable store of value, insulating these markets from the volatility seen in the West.