The post Bitcoin Seen Entering a More Stable Phase, Coinbase and Glassnode Say appeared on BitcoinEthereumNews.com.

In brief Liquidity indicators remain supportive for Bitcoin in the near term, though growth is expected to slow. Institutional investors are favoring options hedges over leveraged futures positions. On-chain data suggest redistribution by long-term holders rather than forced selling. Bitcoin is flashing signs of a more stable and resilient phase, according to a new quarterly report from Coinbase Institutional and on-chain analytics firm Glassnode, released Tuesday. The report, Charting Crypto: 1Q 2026, said excess leverage was largely flushed from the market during last year’s fourth-quarter selloff, leaving Bitcoin less vulnerable to cascading liquidations and better positioned to absorb macroeconomic shocks. Rather than signaling the start of a renewed speculative rally, the analysis suggests Bitcoin is behaving more like a macro-sensitive asset, shaped by global liquidity conditions, institutional positioning, and deliberate portfolio rebalancing.   The authors frame the current environment as one in which durability matters more than speed. That shift marks a departure from earlier market cycles dominated by retail momentum and leveraged trading. Instead, the report points to a more disciplined market structure, supported by liquidity but constrained by defensive positioning from professional investors. “We believe that crypto markets are entering 2026 in a healthier state, with excess leverage having been flushed from the system in Q4,” the authors wrote. “The macro environment looks sound, and monetary policy should be supportive.” One of the report’s key forward-looking indicators is Coinbase’s custom Global M2 Money Supply Index, which the firms say has historically led Bitcoin’s price by roughly 110 days.  The index remains positively aligned with the current quarter, suggesting near-term support for the world’s largest crypto, though researchers warned that money supply growth is expected to moderate later in the period. Open interest in Bitcoin options, meanwhile, has overtaken perpetual futures, with investors increasingly paying for downside protection rather…

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Filed under: News - @ January 28, 2026 12:22 am