Global Crypto Volumes Fall 11% in Q1; Turkey Rises 7%

TRM Labs’ Q1 Global Crypto Adoption Index shows retail volumes fell 11% year-over-year to $979 billion in the first quarter, marking a second consecutive quarterly contraction and the largest pullback since the 2022 bear market. Bitcoin fell about 22% during the quarter after peaking above $126,000 in late 2025.

The report attributed the drop to a stronger U.S. dollar, higher interest rates and a broader risk-off environment that raised opportunity costs for retail investors and reduced participation. Market sentiment weakened as prices declined.

Regional results diverged. Advanced economies including the United States, South Korea, the United Kingdom and Germany recorded the steepest falls in trading volume. Markets where crypto is used more for payments, savings or as an alternative to constrained local currencies showed greater resilience. Turkey recorded a 7% year-over-year increase in volumes. Activity in Latin America and South Asia remained broadly stable, and Venezuela appeared as a growth market in the index.

The outbreak of the Iran war in late February disrupted energy supplies and increased investor sensitivity to geopolitical risks, which the report cited as a factor in reduced trading in sensitive markets.

The index measures retail trading volumes as a proxy for crypto adoption. It reported declines in advanced markets alongside resilience in several emerging markets.

The report wrote, “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.”

The findings coincided with pressure on traditional risk assets during the quarter from higher global interest rates and a stronger dollar.