Coinbase sees constructive Q1 outlook after late 2025 crypto market reset

Coinbase Institutional's latest Charting Crypto report suggests that cryptocurrency markets have a firmer structural footing entering Q1 2026, following a market reset in late 2025. David Duong, global head of investment research, stated the outlook is constructive despite lingering effects from prior leverage-fueled liquidations. The Q4 drawdown successfully flushed out excess leverage and speculative positioning, leading to a healthier market state characterized by more selective and disciplined investor engagement. Onchain data indicates normalizing holder behavior and reduced panic selling, while derivatives usage shows restraint. Although macro uncertainties persist, these risks appear increasingly absorbed into current positioning, suggesting markets are better positioned to absorb shocks and lay groundwork for a more durable 2026.

(Source：The Block)