Bitcoin Enters More Stable Phase as Leverage Declines, Coinbase and Glassnode Report

Bitcoin is showing signs of entering a more stable phase with reduced systemic leverage, according to a Q1 2026 report from Coinbase Institutional and Glassnode published January 28. The analysis indicates the cryptocurrency is behaving more like a macro-sensitive asset, influenced by global liquidity conditions and institutional positioning rather than retail speculation. The report notes that excess leverage was flushed from markets during Q4 2025's selloff, making Bitcoin less vulnerable to cascading liquidations. Open interest in Bitcoin options has surpassed perpetual futures, indicating increased hedging over directional leverage. Coinbase's Global M2 Money Supply Index suggests near-term support for Bitcoin, though money supply growth is expected to moderate later in the period. Bitcoin traded at $89,000 at publication time, up 1.2% on the day but flat over the past week. Researchers cautioned that slowing liquidity growth, inflationary pressures, or geopolitical shocks could test the market's newfound stability.