Institutional Investors Overwhelmingly View Bitcoin as Underpriced, Coinbase Report Reveals
According to a recent Coinbase survey, 71% of institutional investors consider Bitcoin underpriced at its current $85,000 to $95,000 trading range, while 80% are ready to maintain holdings or increase positions during future market downturns.
Approximately 70% of institutional investors maintain that Bitcoin remains underpriced within its current $85,000 to $95,000 price bracket, even as the cryptocurrency lags behind both precious metals and equities in performance metrics, according to findings released by Coinbase.
In its Charting Crypto Q1 2026 report, Coinbase revealed that a survey conducted among 75 institutional investors and 73 independent investors during the period spanning early December through early January discovered that 71% of institutional participants and 60% of independent participants "feel that [Bitcoin] is undervalued."
Twenty-five percent of institutional investors characterized Bitcoin (BTC) as appropriately valued, given that its trading price remained almost exclusively within the $85,000 to $95,000 bracket throughout the survey timeframe, while the final 4% indicated Bitcoin was overpriced.
The current Bitcoin price stands at $87,600, representing a decline exceeding 30% from its October all-time peak of $126,080, according to data from CoinGecko. Cryptocurrency valuations have predominantly moved laterally and downward following a significant market collapse on Oct. 10 that eliminated over $19 billion in leveraged trading positions.
Market sentiment within the crypto sector has failed to recover in the interim, with valuations continuing to struggle for upward momentum against the backdrop of renewed tariff warnings from the Trump administration alongside escalating hostilities between the US and Middle Eastern nations.
This downward trajectory may persist, Coinbase warned, noting 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."
In contrast, precious metals including gold and silver have experienced significant rallies, with gold achieving an unprecedented peak above $5,000 on Monday and silver's market capitalization doubling since October, whereas the Standard & Poor's 500 stock market index has posted a comparatively modest 3% gain.
Institutions to hold, buy dips if price falls further
Among the institutional investors who participated in the survey, 80% indicated they would either maintain their existing crypto holdings or acquire additional positions should the crypto market experience another 10% decline, demonstrating sustained long-term confidence in the digital asset category.
Over 60% of respondents reported that they have either maintained or expanded their cryptocurrency positions since October, the month when Bitcoin established its present all-time high.
These institutional participants also perceive additional opportunities on the horizon, with 54% characterizing the present crypto market cycle as being in either an accumulation stage or a bear market phase.
Potential economic tailwinds ahead for crypto
Despite ongoing uncertainty surrounding monetary policy, Coinbase anticipates the Federal Reserve will implement two rate reductions (50 basis points) during 2026, which could potentially create favorable conditions for risk-on assets such as cryptocurrencies.
From a broader perspective, Coinbase suggested the "economy looks to be on solid footing," which could potentially benefit the crypto market, citing consumer inflation remaining stable at 2.7% in December and real gross domestic product expanding at a rate exceeding 5% during the fourth quarter.