Bitcoin Dominance Holds Near 59% as Markets Shift Towards Protective Structures
A recent report from Coinbase and on-chain analytics firm Glassnode reveals that digital asset markets entered 2026 with a lower level of leverage, cleaner structure, and more disciplined risk positioning. The firms published their quarterly Charting Crypto report on January 27, drawing on proprietary data and an institutional survey to assess market conditions.
The report found that Bitcoin (BTC) retained its structural leadership, maintaining dominance at nearly 59%. This is despite mid- and small-cap assets failing to sustain gains from earlier rallies. The shift towards protective structures is also evident, with participants hedging against further downside rather than exiting risk entirely.
The report noted that active BTC supply within three months increased to 37% in Q4, while long-dormant supply declined modestly. This suggests a healthier market structure and reduced leverage. The firms' survey also revealed that institutional sentiment remains selectively constructive, with a preference for large-cap exposure amidst lingering geopolitical uncertainty.