A comprehensive survey conducted by cryptocurrency exchange Coinbase has revealed a strong bullish conviction among institutional investors regarding Bitcoin's valuation. According to the exchange's Charting Crypto Q1 2026 report, 71% of institutional investors believe Bitcoin is currently undervalued, with its price trading between $85,000 and $95,000 during the survey period.
The survey, which polled 75 institutional investors and 73 independent investors between early December and early January, found that only 4% of institutions considered Bitcoin overvalued, while a quarter viewed it as fairly priced. Retail sentiment was slightly less bullish, with 60% of independent investors sharing the undervaluation view.
This institutional optimism persists despite Bitcoin's recent performance. At the time of the report, Bitcoin was priced at $87,600, representing a decline of over 30% from its all-time high of $126,080 in October. The broader crypto market has struggled to regain momentum following a major crash on October 10 that liquidated over $19 billion in leveraged positions. Market sentiment has been further dampened by geopolitical tensions, including renewed tariff threats from the Trump administration and escalating US-Middle East conflicts.
Perhaps the most telling finding is the resilience of institutional investors. A significant 80% stated they would either hold their current crypto positions or buy more if the market experienced an additional 10% decline. Furthermore, more than 60% reported having held or increased their crypto allocations since October's peak. This indicates a long-term conviction that treats market dips as accumulation opportunities rather than reasons for exit.
The report also contextualizes Bitcoin's performance against other asset classes. While crypto has trended sideways, gold has soared to a record high above $5,000, and silver has doubled in market value since October. The S&P 500 has seen a modest 3% rise during the same period.
Looking ahead, Coinbase analysts point to potential macroeconomic tailwinds. The report anticipates the Federal Reserve will deliver two interest rate cuts (totaling 50 basis points) in 2026, which could provide a favorable environment for risk-on assets like cryptocurrency. This outlook is supported by what Coinbase describes as an economy "on solid footing," with consumer inflation holding steady at 2.7% in December and real GDP growing at over 5% in the fourth quarter.
In terms of market cycle perspective, 54% of surveyed investors view the current environment as either an accumulation phase or a bear market, suggesting a prevalent belief that the market is in a period of value-building consolidation rather than a speculative peak.
