Coinbase: Optimistic outlook for Q1 following crypto market correction at the end of 2025

According to The Block, Coinbase Institutional's latest "ChartingCrypto" report indicates that after the adjustment at the end of 2025, the cryptocurrency market has a more solid structural foundation at the start of 2026. Entering the first quarter, market positioning improved, and the overall environment became more balanced. The report believes that the decline in the fourth quarter of last year helped clear previously accumulated excessive leverage and speculative positions. The current environment shows that the market is recalibrating rather than returning to aggressive risk-taking. Investor participation remains active but more cautious, and position allocation is more rational and orderly than in previous expansion phases, reducing downside risk and making the market more resilient to shocks. Meanwhile, on-chain data shows that supply dynamics are becoming more orderly, signs of panic selling have decreased, and holder behavior is gradually returning to normal; leverage use in the derivatives market is also more restrained. Although macroeconomic uncertainties remain, related risks have been largely absorbed by market positioning, resulting in a more controlled price reaction.