Global crypto adoption declined in the first quarter as retail activity dropped 11% year-on-year to $979 billion amid macroeconomic and geopolitical pressures, according to TRM Labs.
The contraction marked a second consecutive quarterly decline and the steepest pullback since 2022, driven by a stronger US dollar, higher interest rates and a broader risk-off environment.
The downturn coincided with a 22% fall in Bitcoin prices during the quarter, following a late-2025 peak above $126,000 and a sustained slide across digital asset markets.
Advanced economies including the United States, South Korea, the United Kingdom and Germany recorded the sharpest declines, reflecting crypto’s predominant use as a speculative asset in those markets.
“This divergence reflects a fundamental difference in demand: where domestic monetary policy is constrained or capital controls limit alternatives, crypto functions as a store of value and shadow dollar system,”
TRM Labs said.
By contrast, emerging markets showed resilience, with Turkey posting a 7% increase in crypto volumes while activity across Latin America and South Asia remained broadly stable.
The report also linked shifting market behaviour to geopolitical tensions including the Iran war, which disrupted energy flows and reinforced caution across global financial markets.
At the time of reporting, Bitcoin price was $78,290.32.