Coinbase: Crypto market is healthier, has completed its bottoming process

The cryptocurrency market entered 2026 with a healthier structural environment following a broad correction in the fourth quarter of last year, according to a report from Coinbase Institutional. The report characterized last year's market volatility as a period of consolidation rather than capitulation, noting that the foundation for a sustainable market has been laid. It stated that the market environment is becoming more balanced in the first quarter, with positioning also improving. Coinbase added that the fourth-quarter price decline helped unwind excessive leverage and speculative positions, ultimately making the market healthier. This has reduced downside vulnerability and created a more favorable environment for absorbing external shocks. While uncertainties regarding monetary policy, geopolitical risks, and regulation remain, the report suggests these factors are being gradually absorbed into market positions, leading to more disciplined market reactions rather than sharp disruptions.