Around 70% of institutional investors believe Bitcoin is undervalued when priced between $85,000 to $95,000, as it continues to underperform against precious metals and the stock market, Coinbase has found.
Coinbase said in its Charting Crypto Q1 2026 report that its survey of 75 institutional investors and 73 independent investors was taken between early December to early January, found 71% of institutions and 60% of independent investors “feel that [Bitcoin] is undervalued.”
A quarter of institutional investors said Bitcoin (BTC) was fairly valued, with its price almost entirely staying within the $85,000 to $95,000 range during the survey period, while the remaining 4% said Bitcoin was overvalued.
Bitcoin is currently priced at $87,600, down over 30% from its $126,080 all-time high in October, CoinGecko data shows. Crypto prices have mostly trended sideways and downward since a major market crash on Oct. 10 wiped out more than $19 billion worth of leveraged positions.
Crypto market sentiment hasn’t improved since, with prices struggling to regain momentum amid renewed tariff threats from the Trump administration and intensifying tensions between the US and the Middle East.
Coinbase said this trend could continue, saying that “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.”
Meanwhile, gold and silver have soared, with gold hitting a record high above $5,000 on Monday and silver doubling in market value since October, while the Standard & Poor’s 500 stock market index has risen a modest 3%.
Institutions to hold, buy dips if price falls further
Of the institutional investors surveyed, 80% said they would either hold their crypto positions or buy more in response to another 10% crypto market fall, signaling long-term conviction in the asset class.
More than 60% said they have either held or increased their crypto positions since October, when Bitcoin set its current high.
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The institutional investors also see more opportunity ahead, with 54% viewing the current crypto market cycle as either in an accumulation phase or a bear market.
Potential economic tailwinds ahead for crypto
Although monetary policy remains uncertain, Coinbase expects the Federal Reserve to deliver two rate cuts in 2026, potentially providing a tailwind for risk-on assets like crypto.
More broadly, Coinbase said the “economy looks to be on solid footing,” potentially playing into the crypto market’s favor, with consumer inflation holding steady at 2.7% in December and the real gross domestic product growing at over 5% in the fourth quarter.
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