CoinGecko reported a sharp market contraction in Q1 2026: global crypto market capitalization fell by over 20%, top-10 centralized exchange spot volumes dropped 39% quarter-on-quarter to $2.7 trillion (from $4.5T), and average daily trading volume declined 27% to $117.8B. March was the weakest month at $800B (lowest since Nov 2023); HTX volumes fell 55% to $133.6B. CoinGecko attributed the selloff to lingering bearish momentum from late 2025, geopolitical instability (including US‑Israeli strikes on Iran), and the nomination of Kevin Warsh to lead the Fed.

Report provides concrete market metrics showing a notable downturn: top-10 CEX spot volumes -39% QoQ to $2.7T, average daily volume -27% to $117.8B, market cap >20% decline, Bitcoin down 22%, March lowest month at $800B; CoinGecko links declines to geopolitical events, Fed nomination, and lingering bearish momentum.