Institutional Investors Believe Bitcoin Is Trading Below Its Fair Value

A notable investor survey regarding the cryptocurrency market revealed that perceptions regarding Bitcoin’s current price levels are becoming increasingly optimistic.

According to a global survey conducted by Coinbase and Glassnode, over 70% of investors believe Bitcoin is currently trading “undervalued”.

The survey, which included a total of 91 investors (29 institutional, 62 individual), showed a more pronounced optimism, particularly among institutional investors. According to the data, approximately 75% of institutional investors stated that Bitcoin is undervalued, while this figure dropped to 61% among individual investors. Looking at the broader perspective, 82% of institutional investors and 70% of individual investors believe the market is either in the “final stages of a bear market” or undergoing a “value-driven pullback.” Only a small percentage of respondents argued that Bitcoin is overvalued.

In addition to survey results, on-chain data points to a similar picture. The Bitcoin Combined Market Index (BCMI), developed by CryptoQuant analyst Woominkyu, recently rose from 0.26 to 0.37. This index, which combines metrics such as MVRV, NUPL, SOPR, and market sentiment, historically coincides with periods when Bitcoin was in deep valuation zones.

On the other hand, a notable change is observed in short-term investor behavior. The share of investors holding BTC for 1 week to 1 month in the realized market capitalization has fallen to 3.91%, close to the level seen in October 2023 when Bitcoin was trading around $27,000. Analysts state that this decline indicates a decrease in speculative activity in the market and that Bitcoin may be entering a phase of more long-term value accumulation.

*This is not investment advice.