Coinbase stated that following the cryptocurrency market correction at the end of 2025, the outlook for the first quarter of 2026 is more balanced and structurally stronger.
According to the Charting Crypto report published by Coinbase Institutional, year-end adjustments helped clean up excessive leverage and speculative positions in the market, laying a more solid foundation for the first months of 2026.
The report stated that market positioning has improved and the overall market environment has become more balanced. This outlook is expected to continue throughout the first quarter of 2026. Coinbase Institutional noted that current conditions indicate a healthy rebalancing process rather than a return to risk appetite.
David Duong, Head of Global Investment Research at Coinbase Institutional, commented on the matter, saying, “While the impact of last year’s highly leveraged liquidations hasn’t completely disappeared, we maintain our constructive stance on the crypto market outlook for early 2026. There are still many reasons to be optimistic about the first quarter of 2026.”
According to the report, the decline experienced in the fourth quarter of 2025 contributed to the formation of a healthier structure by reducing the excessive accumulation of risk in the market. While investor participation continues, a more cautious, rational, and orderly distribution of positions is noticeable compared to previous expansion periods.
Coinbase Institutional also argued that the macroeconomic environment acts as a “buffer” for markets. While uncertainties regarding monetary policy, geopolitical developments, and regulations persist, these risks are increasingly priced in, leading to more measured and rational market responses rather than sudden, sharp fluctuations.
*This is not investment advice.
