Bitcoin Seen Entering a More Stable Phase, Coinbase and Glassnode Say
Bitcoin is showing signs of increased stability and resilience following the reduction of excess leverage during the previous year’s Q4 selloff. According to a joint report from Coinbase Institutional and Glassnode, Bitcoin is now less prone to cascading liquidations and better prepared to handle macroeconomic shocks. The market structure has shifted from retail-driven speculation and leveraged trading to one characterized by disciplined, defensive positioning from institutional investors. Bitcoin’s performance is increasingly linked to global liquidity, institutional rebalancing, and macroeconomic factors. Coinbase’s Global M2 Money Supply Index, which historically predicts Bitcoin price movements with a lag, currently signals continued near-term support, though money supply growth may slow later in the quarter. There is a notable shift from directional leveraged trading to hedging, as seen in options activity overtaking perpetual futures. On-chain data indicates a cautious sentiment, with more frequent coin movement but no significant market exits. Overall, Bitcoin appears to be entering a phase of slower price movement and tighter connections to broader economic conditions, though risks remain if liquidity slows or macroeconomic shocks occur.
