Coinbase: Crypto Market Outlook Optimistic for Q1 2026 Following Correction by End of 2025
BlockBeats News, January 23rd, Coinbase Institutional's latest Charting Crypto report stated that after the crypto market experienced a correction at the end of 2025, in the first few months of 2026, its structural foundation became more solid. The report emphasized that market positioning is improving, and the market environment is more balanced, a situation that will continue into the first quarter.
David Duong, Global Investment Research Director at Coinbase Institutional, said: "Although the shadow cast by last year's high-leverage liquidations has not completely dissipated, we remain constructive on the outlook for the crypto market in early 2026. There are still several reasons to be optimistic in the first quarter of 2026."
The report pointed out that the decline in the fourth quarter of 2025 helped clear excessive leverage and speculative positions, bringing the market back to a healthier state. The current market environment does not signal a return to risk appetite but indicates a need for adjustment. Investor participation remains active but more cautious, with position allocations more orderly and rational compared to the expansion phase.
Coinbase Institutional also noted that the macro environment is acting as a "buffer." The report stated that despite ongoing uncertainties in monetary policy, geopolitics, and regulation, these risks are increasingly being digested by the market in advance and reflected in position structures, rather than triggering sudden and drastic volatility, leading to a more rational and restrained market response.
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