Bitcoin is showing signs of entering a more stable phase as excess leverage has been cleared and liquidity conditions remain supportive, according to a new quarterly report from Coinbase Institutional and Glassnode.
The report said last year’s fourth-quarter selloff flushed speculative leverage from the market, leaving Bitcoin less exposed to cascading liquidations and better positioned to absorb macroeconomic shocks.
“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.
Rather than signalling a renewed speculative rally, the analysis suggests Bitcoin is increasingly behaving like a macro-sensitive asset shaped by global liquidity and institutional portfolio management.
Coinbase and Glassnode pointed to their Global M2 Money Supply Index, which remains aligned with near-term price support, though they warned liquidity growth is likely to slow later in the quarter.
Institutional investors are also favouring options hedges over leveraged futures, while on-chain data show redistribution by long-term holders rather than forced selling.
The firms cautioned that slower liquidity growth, renewed inflation or geopolitical shocks could still test whether Bitcoin’s emerging stability can hold.
At the time of reporting, Bitcoin price was $88,870.91.