In this video, Coin Bureau summarizes a new Coinbase Institutional and Glassnode report that examines investor sentiment, positioning, and on chain data heading into Q1 2026. Despite a weak end to 2025, the report shows investors remain engaged rather than capitulating.
Key points
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Investor risk appetite declined in Q4, with more participants labeling the market as a bear market, especially retail investors.
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Macro conditions, declining liquidity, and regulatory uncertainty are seen as the main risks for early 2026.
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Expectations for an altcoin rally faded, with most investors now expecting Bitcoin dominance to remain stable or rise.
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A strong majority of both institutions and retail believe Bitcoin is undervalued.
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Most investors held or bought during the October liquidation and say they would do the same on another 10% drop.
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Bitcoin maintained dominance in Q4 while mid and small cap altcoins suffered steep losses.
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On chain data shows many BTC holders remain in profit, contributing to sell pressure, but also strong dip buying.
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Ethereum saw more long term selling after October, yet network activity continues to grow and fees remain low after recent upgrades.
Takeaway
The report points to cautious but resilient market behavior. While upside may be limited without new catalysts, strong belief in Bitcoin’s value and consistent dip buying suggest a more controlled downside compared to past bear markets.
