Coinbase Report: The Crypto Market is More Robust After Adjustments, Optimistic Outlook for Q1

Coinbase Institutional's latest Charting Crypto report states that after experiencing a correction at the end of 2025, the crypto market entered the first few months of 2026 with a more solid structural foundation, improving market positioning, and a more balanced market environment, which is expected to continue into the first quarter.

The decline in the fourth quarter of last year helped to clear out the excessive leverage and speculative positions that had accumulated previously. The current environment indicates that the market is undergoing a recalibration rather than returning to aggressive risk-taking. Investor participation remains active but more cautious, with position allocations being more reasonable and orderly compared to previous expansion phases, which reduces the downside risk and makes the market more resilient to shocks. Additionally, the macro environment is playing a "buffer" role. The report notes that although uncertainties in monetary policy, geopolitics, and regulation still exist, these risks are increasingly being priced in by the market in advance and reflected in the position structure, rather than triggering sudden and severe fluctuations, leading to a more rational and restrained market response.