Stablecoin

Based

2026

Altcoin

<p>As per recent glassnode’s report, BTC price has entered Q1 2026 on a much steadier footing after the leverage-heavy unwind seen in October 2025, with bitcoin trading below 29% from its prior peak above $125,000 and consolidating near key levels. While macro conditions still remain supportive, and even multiple on-chain metrics suggest that the market is transitioning into a more selective and distribution-driven phase rather than a broad risk-on environment.</p>
<h2 class="wp-block-heading" id="h-macro-backdrop-supports-risk-assets-for-now">Macro Backdrop Supports Risk Assets for Now</h2>
<p>Meanwhile, the macro environment has provided a constructive backdrop for BTC crypto markets. Inflation remained contained at 2.7% in the December CPI reading, while real GDP growth for Q4 2025 was estimated at a robust 5.3%. At the same time, expectations of two rate cuts priced into Fed funds futures continue to act as a tailwind for risk assets, including bitcoin.</p>
<p>That said, labor market momentum has cooled. US job creation slowed sharply in 2025, and while AI-driven productivity gains explain part of this moderation, a more pronounced deterioration could shift investor positioning toward caution.</p>
<h2 class="wp-block-heading" id="h-bitcoin-dominance-holds-firm-despite-altcoin-stress">Bitcoin Dominance Holds Firm Despite Altcoin Stress</h2>
<p>From a market structure perspective, Bitcoin dominance remained resilient during Q4 2025, edging up to 59% even as mid-cap and small-cap altcoins struggled to maintain earlier gains. Still, the BTC chart shows that this dominance stability came amid a broader deleveraging event, particularly in perpetual futures markets.</p>
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<p>Open interest in BTC options overtook perpetual futures, signaling a growing demand for downside protection rather than outright directional exposure. The options market’s 25-delta put-call skew remained positive across multiple expiries, reinforcing the defensive tone.</p>
<h2 class="wp-block-heading" id="h-on-chain-sentiment-slips-into-anxiety-zone">On-Chain Sentiment Slips Into Anxiety Zone</h2>
<p>From a technical perspective, <a href="https://20368641.fs1.hubspotusercontent-na1.net/hubfs/20368641/Glassnode%20x%20Coinbase%20Reports/Q1%202026%20Charting%20Crypto_Glassnode%20x%20Coinbase.pdf" target="_blank" rel="noopener noreferrer nofollow">entity-adjusted Net Unrealized Profit/Loss</a> (NUPL) shows that bitcoin sentiment deteriorated from “Belief” to “Anxiety” following October’s selloff and has remained there since. Still, the chart suggests this level historically aligns more with late-cycle consolidation than outright capitulation.</p>
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<p>At the same time, BTC supply dynamics shifted notably, too. Per BTC <a href="https://get.glassnode.com/charting-crypto-q1-2026/?utm_campaign=Charting_Crypto_q1_26&amp;utm_medium=email&amp;utm_source=email_launch" target="_blank" rel="noopener noreferrer nofollow">report</a>, the Bitcoin supply active within three months have surged by 37% in Q4, while the coins that were dormant for over a year declined by 2% only.&nbsp;</p>
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<p>This increase in short-term activity indicates elevated distribution velocity, a pattern often observed when long-term holders reduce exposure into strength.</p>
<h2 class="wp-block-heading" id="h-cost-basis-levels-gain-importance">Cost Basis Levels Gain Importance</h2>
<p>Realized price and MVRV metrics add further context. Based on this report, the sharp decline in the percentage of BTC supply held in profit points to the $80,000–$85,000 price range as a most potential accumulation zone for systematic strategies.&nbsp;</p>
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<p>Meanwhile, the other metric “Puell Multiple” has slipped to 0.9, which is suggesting that miner revenues have only fell modestly below their annual average historically this a signal of tightening margins rather than distress.</p>
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<p>Also, the report add that the Stablecoin supply growth and transaction volumes remain constructive too, but forward-looking indicators suggest tightening could emerge beyond Q1.</p>
<h2 class="wp-block-heading" id="h-btc-price-entered-2026-with-selective-strength">BTC Price Entered 2026 With Selective Strength</h2>
<p>Taken together, the glassnode’s BTC report highlights that market appears healthier, yet increasingly selective in risk appetite. While bitcoin continues to attract defensive positioning relative to altcoins, the <a href="https://coinpedia.org/price-prediction/bitcoin-price-prediction/" target="_blank" rel="noopener noreferrer nofollow">BTC price</a> remains dependent on liquidity trends, macro stability, and whether distribution pressure gives way to renewed accumulation.</p>

What Glassnode On-Chain Report Reveals About BTC Price in Q1 2026?

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