The crypto honeymoon is over for now as analysts warn of a major first-quarter profit squeeze

What Happened

Crypto trading slowed in early 2026, prompting analysts to cut forecasts. Barclays downgraded Coinbase, noting global trading activity reached levels unseen since end-2023. Coinbase's March volume was lowest since September 2024. Bitcoin fell 22% first quarter; ether dropped 29%. Oppenheimer reduced Coinbase volume estimates to $211 billion from $244 billion. Lower trading volumes directly reduce exchange fee revenue. Multiple analysts revised models downward across the sector.

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