Coinbase Survey: Most Institutions Say Bitcoin Is Undervalued
A new Coinbase survey shows most institutional investors view Bitcoin as undervalued despite prolonged underperformance versus gold, silver, and equities.
Bitcoin’s prolonged consolidation below six figures is increasingly being interpreted by large investors not as a sign of weakness, but as a mispricing. According to a new report from Coinbase, a clear majority of institutional participants believe the world’s largest cryptocurrency is undervalued at current levels, even as macro uncertainty and geopolitical tensions continue to weigh on broader crypto market sentiment.
The findings come as Bitcoin trades well below its prior peak and struggles to regain momentum following a sharp market-wide correction in late 2025. While risk assets have largely stalled, institutional behavior suggests conviction is building beneath the surface.
Institutions See Bitcoin as Undervalued
In its Charting Crypto Q1 2026 report, Coinbase revealed that 71% of institutional investors surveyed believe Bitcoin is undervalued when priced in the $85,000 to $95,000 range. The survey, conducted between early December and early January, included 75 institutional investors and 73 independent investors.
Independent investors were slightly less decisive but still broadly aligned, with 60% also describing Bitcoin as undervalued at those levels. Meanwhile, 25% of institutional respondents said Bitcoin was fairly valued, while just 4% viewed it as overvalued.
The responses reflect a period of relative price stability. During the survey window, Bitcoin traded almost entirely within the $85,000–$95,000 band, offering participants a consistent reference point for valuation rather than a volatile snapshot.
At the time of writing, Bitcoin is trading near $87,700, according to CryptoPulse’s Crypto Market Monitor data. That price represents a decline of more than 30% from its October all-time high of $126,080, set shortly before a major market shakeout.
Market Dragged by Crash and Geopolitics
The current range-bound environment traces back to October 10, when a sharp downturn erased over $19 billion in leveraged crypto positions. Since then, prices across the digital asset market have largely moved sideways or lower, with sentiment failing to meaningfully recover.
Coinbase pointed to renewed macro and geopolitical pressures as ongoing headwinds. Escalating tariff threats from the Trump administration and intensifying tensions between the United States and the Middle East have injected fresh uncertainty into global markets, dampening risk appetite.
The firm warned that external shocks could still weigh on crypto in the near term, particularly if global instability begins to affect critical commodities.
“Geopolitical tensions have flared up in several parts of the world, and any escalation of unrest, particularly one that disrupts energy markets, could negatively impact investor sentiment,” Coinbase noted in the report.
Bitcoin Lags as Gold and Silver Surge
Bitcoin’s perceived undervaluation is reinforced by its recent divergence from traditional safe-haven assets. While crypto prices have struggled, precious metals have rallied sharply.
- Gold surged to a new record above $5,000 on January 26
- Silver has doubled in market value since October
- By comparison, the S&P 500 index is up a modest 3%
This contrast has fueled debate around Bitcoin’s positioning in the current cycle, particularly as it competes with gold for relevance as a hedge amid global uncertainty. For many institutional investors, the underperformance relative to metals is less a verdict on Bitcoin’s long-term prospects and more a signal that its valuation may be lagging fundamentals.
Institutions Signal Willingness to Hold or Buy
Despite weak price action, institutional commitment to crypto remains resilient. Coinbase found that 80% of institutional investors would either hold their positions or buy more crypto if the market were to fall another 10%.
This response underscores a long-term mindset rather than a short-term trading approach. Notably, more than 60% of institutional respondents said they have held or increased their crypto exposure since October, when Bitcoin reached its latest peak.
Looking ahead, institutions appear cautious but opportunistic. Fifty-four percent of surveyed investors believe the current phase represents either an accumulation period or a bear market, suggesting expectations of extended consolidation rather than an imminent breakout.
Macro Conditions Could Turn Supportive
While uncertainty persists, Coinbase struck a cautiously optimistic tone on the broader economic backdrop. The firm expects the U.S. Federal Reserve to deliver two interest rate cuts in 2026, a shift that could provide meaningful support for risk-on assets such as cryptocurrencies.
Key macro indicators cited in the report suggest underlying economic strength:
- Consumer inflation held steady at 2.7% in December
- Real GDP growth exceeded 5% in the fourth quarter
Coinbase argued that these conditions, combined with reduced speculative excess, leave the crypto market better positioned than it was heading into previous years.
“We believe that crypto markets are entering 2026 in a healthier state, with excess leverage having been flushed from the system in Q4. The macro environment looks sound, and monetary policy should be supportive,” the firm stated in its topline market outlook.
Corporate Treasuries Continue Accumulating
Institutional confidence is not limited to survey responses. Major public companies continue to add digital assets to their balance sheets, even as prices remain below recent highs.
Michael Saylor’s Strategy has now crossed the 700,000 Bitcoin milestone, reinforcing its position as the world’s largest corporate holder of BTC. On January 26, the company disclosed the purchase of 2,932 BTC at an average price of approximately $90,061, taking advantage of sub-$100,000 levels.
On the Ethereum side, BitMine Immersion Technologies, led by Tom Lee, reported the acquisition of an additional 40,302 ETH this week, further expanding its already sizable treasury.
According to CryptoPulseNews’ Crypto Treasury Tracker, both companies dominate public crypto holdings globally:
- Strategy holds 712,647 BTC, representing approximately 3.39% of total Bitcoin supply
- BitMine Immersion Technologies holds 4,243,338 ETH, or around 3.52% of Ethereum’s circulating supply
These figures highlight the scale at which corporate treasuries are willing to commit capital during periods of market uncertainty.
A Market Defined by Patience
Bitcoin’s struggle to reclaim momentum has tested investor resolve, but institutional behavior suggests confidence has not disappeared—only slowed. With leverage flushed out, macro conditions stabilizing, and corporate buyers accumulating at scale, the current environment increasingly resembles a market defined by patience rather than fear. Whether Bitcoin’s perceived undervaluation translates into renewed upside may depend less on sentiment and more on time, as institutions appear content to wait for fundamentals to catch up with price.
