Coinbase Institutional has expressed optimism for the cryptocurrency market in the first quarter of 2026, following a market correction at the end of 2025. According to its latest "Charting Crypto" report, the market now has a more solid structural foundation, with improved positioning and a balanced environment. The report highlights that the fourth-quarter decline helped eliminate excessive leverage and speculative positions, leading to a recalibration rather than a return to aggressive risk-taking. Investor participation remains active but cautious, with more rational and orderly position allocation, reducing downside risks and enhancing market resilience. On-chain data indicates a decrease in panic selling and a return to normal holder behavior, while leverage in the derivatives market is more restrained. Despite ongoing macroeconomic uncertainties, these risks have been largely absorbed, resulting in a more controlled price response.