Majority of Institutional Investors Say Bitcoin Is Undervalued: Coinbase

Despite a steep correction and continued underperformance versus traditional safe havens, most institutional investors believe Bitcoin is currently undervalued, according to new data from Coinbase.

Key Takeaways

Around 70% of institutional investors believe Bitcoin is undervalued at prices between $85,000 and $95,000.

Bitcoin has fallen more than 30% from its October all-time high, while gold and silver have surged to record levels.

Most institutions say they would hold or buy more if prices fall further, signaling long-term conviction.

Coinbase sees potential macro tailwinds in 2026, including possible Federal Reserve rate cuts.

Institutional Sentiment Remains Constructive

Coinbase’s Charting Crypto Q1 2026 report, based on surveys conducted between early December and early January, found that 71% of institutional investors and 60% of independent investors view Bitcoin as undervalued at current price levels.

The survey included 75 institutional investors and 73 independent investors. Among institutions:

25% said Bitcoin is fairly valued

4% said it is overvalued

During the survey period, Bitcoin traded almost entirely within the $85,000–$95,000 range, reinforcing the perception that prices are consolidating rather than overheated.

Bitcoin currently trades near $87,600, down more than 30% from its October peak of $126,080, according to CoinGecko.

Price Weakness Driven by Macro and Leverage Unwind

Crypto markets have struggled to regain momentum since the Oct. 10 market crash, which wiped out more than $19 billion in leveraged positions. Since then, prices have largely trended sideways or lower.

Sentiment has remained fragile amid:

Renewed tariff threats from the Trump administration

Rising geopolitical tensions, particularly involving the U.S. and the Middle East

Broader risk-off behavior across global markets

Coinbase warned that further geopolitical escalation—especially disruptions to energy markets—could continue to weigh on investor confidence in crypto.

Bitcoin Lags as Traditional Safe Havens Surge

While Bitcoin has pulled back sharply, traditional defensive assets have rallied:

Gold surged to a record high above $5,000

Silver has doubled in market value since October

The S&P 500 has gained a modest 3%

This divergence has reinforced the view that Bitcoin is still being treated as a high-volatility risk asset rather than a macro hedge—at least in the short term.

Institutions Signal Willingness to Buy the Dip

Despite weak price action, institutional conviction appears intact.

According to the survey:

80% of institutional investors said they would either hold or increase exposure if crypto prices fell another 10%

More than 60% said they have already held or added to positions since Bitcoin’s October high

Additionally, 54% of institutions view the current environment as either:

An accumulation phase, or

A bear market, rather than a late-cycle top

This suggests institutions see current conditions as an opportunity-building period rather than a reason to exit.

Macro Outlook Could Turn Supportive in 2026

Looking ahead, Coinbase sees potential economic tailwinds:

The firm expects the Federal Reserve to cut rates twice in 2026

U.S. consumer inflation remained steady at 2.7% in December

Real GDP growth exceeded 5% in Q4

If monetary policy eases while economic growth remains resilient, risk-on assets like crypto could benefit—particularly if liquidity conditions improve.

Bottom Line

While Bitcoin continues to underperform traditional safe havens, institutional investors largely view current prices as undervalued rather than broken. The data points to patience, accumulation, and long-term positioning—not capitulation.

Price may remain volatile in the near term, but institutional sentiment suggests confidence that Bitcoin’s valuation disconnect is more likely to resolve upward than fade away.