Recent findings from a Coinbase survey indicate that a substantial majority of institutional investors perceive Bitcoin as undervalued, particularly in its current price range of $85,000 to $95,000. The survey revealed that 70% of these investors hold this view, despite Bitcoin experiencing a notable decline exceeding 30% from its all-time high of $126,080 reached in October.
The survey, part of Coinbase”s “Charting Crypto Q1 2026” report, was conducted between early December and early January, capturing sentiments while Bitcoin fluctuated around $87,600. Interestingly, only 4% of institutional investors considered Bitcoin to be overvalued, while 25% assessed it as fairly priced.
In addition to these insights, the findings suggest a robust confidence among institutional players regarding the cryptocurrency market. Despite the downturn, 80% of institutional investors are inclined to either maintain their current holdings or increase their investments if prices were to drop by another 10%. This reflects a long-term bullish outlook on the asset class.
Comparatively, independent investors expressed slightly less optimism, with 60% viewing Bitcoin as undervalued. This disparity indicates a stronger conviction among institutional investors, who are generally more willing to interpret price drops as opportunities to buy.
The survey also highlighted that more than 60% of institutional investors have either sustained or augmented their crypto positions since the price peak in October. This data underscores a prevailing sentiment that the current market represents a favorable buying opportunity.
Market dynamics have been challenging, with traditional assets like gold and silver outperforming Bitcoin during the same period—gold reached $5,000, and silver”s value has doubled since October. Meanwhile, the S&P 500 index has seen only modest gains of around 3%.
Geopolitical tensions and potential disruptions to energy markets have also posed risks to crypto prices. Despite these headwinds, institutional investors remain steadfast in their commitment to the sector. The report notes that 54% of these investors categorize the current market as either an accumulation phase or a bear market, aligning with their strategic approach to bolster positions during downturns.
Looking ahead, Coinbase anticipates that Federal Reserve rate cuts in 2026 may benefit risk assets like crypto by lowering borrowing costs, potentially encouraging a shift towards higher-return investments. Overall, the data reflects a solid belief in the resilience of the crypto markets, given the current economic landscape, which shows signs of stability with steady consumer inflation and significant GDP growth.
