According to a recent study by Coinbase, nearly 70% of institutional investors consider Bitcoin to be undervalued when its price ranges between $85,000 and $95,000. This perception comes as Bitcoin continues to lag behind traditional assets like precious metals and equities.
The report titled “Charting Crypto Q1 2026” surveyed 75 institutional investors alongside 73 independent investors from early December through early January. It revealed that 71% of institutional participants and 60% of independent ones believe Bitcoin is currently priced below its true value.
Meanwhile, about one-quarter of the institutional respondents felt that Bitcoin’s valuation was fair within the specified price band during the survey period. Only a small fraction—4%—viewed it as overvalued.
At present, Bitcoin trades around $87,600—a decline exceeding 30% from its all-time peak near $126,080 recorded in October according to CoinGecko data. Since a significant market crash on October 10th erased more than $19 billion in leveraged crypto positions, prices have largely moved sideways or downward.
The overall sentiment across cryptocurrency markets remains subdued amid ongoing challenges such as renewed tariff threats from the Trump administration and escalating geopolitical tensions involving the United States and Middle Eastern countries.
Coinbase cautions that these geopolitical conflicts could persist or worsen. Any escalation disrupting energy supplies might further dampen investor confidence in crypto assets.
In contrast to cryptocurrencies’ struggles, precious metals have surged: gold recently reached an unprecedented level above $5,000 per ounce while silver’s market value has doubled since last October. Meanwhile, traditional equity markets reflected modest gains with the S&P 500 index rising approximately three percent during this timeframe.
Institutional Investors Favor Holding or Buying on Dips
The survey also found strong conviction among institutions regarding their crypto holdings: roughly eighty percent indicated they would either maintain their current positions or increase them if prices dropped another ten percent—signaling confidence over longer horizons for digital assets.
Since October’s peak for Bitcoin prices was established at current levels earlier this year, over sixty percent reported having held steady or expanded their exposure within cryptocurrency portfolios since then.
A Majority See Opportunity Amid Market Cycles
A majority (54%) of these professional investors perceive today’s crypto environment either as part of an accumulation phase or situated within a bear market cycle — suggesting expectations for future growth potential despite recent volatility.
Economic Factors Could Boost Crypto Prospects
Certain macroeconomic conditions may provide favorable momentum going forward: Coinbase anticipates two interest rate reductions by the Federal Reserve throughout 2026 which could benefit risk-on investments including cryptocurrencies.
The broader economy appears stable with consumer inflation steady at around two point seven percent in December coupled with real GDP expanding beyond five percent during Q4 — factors likely supportive toward positive sentiment surrounding digital currencies.
According to a recent study by Coinbase, nearly 70% of institutional investors consider Bitcoin to be undervalued when its price ranges between $85,000 and $95,000. This perception comes as Bitcoin continues to lag behind traditional assets like precious metals and equities.
The report titled &qout;amp;amp;amp;amp;amp;amp;amp;qout;&qout;;Charting Crypto Q1 2026&qout;; surveyed 75 institutional investors alongside 73 independent investors from early December through early January. It revealed that 71% of institutional participants and 60% of independent ones believe Bitcoin is currently priced below its true value.
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＜ｈ２＞InstitutionalInvestorsFavorHoldingorBuyingonDips＜／ｈ２＞
＜ｐ＞Thesurveyalsofoundstrongconvictionamonginstitutionsregardingtheircryptoholdings：roughlyeightypercentindicatedtheywouldeithermaintaintheircurrentpositionsorincreasethemifpricesdroppedanothertenpercent－signalingconfidenceoverlongerhorizonsfordigitalassets。＆＃６０；／ｐ＞
＜ｐ＞SinceOctober’speakforBitcoinpriceswasestablishedatcurrentlevelsearlierthisyear，oversixtypercentreportedhavingheldsteadyorexpandedtheirexposurewithincryptocurrencyportfoliossincethen。＆＃６０；／ｐ＞
＜ｈ２＞AMajoritySeeOpportunityAmidMarketCycles＜／ｈ２＞
＜Ｐ＞Amajority（54％）oftheseprofessionalinvestorsperceivetoday’scryptoenvironmenteitheraspartofanaccumulationphaseorasituatedwithinabearmarketcyle―suggestingexpectationsforfuturegrowthpotentialdespiterecentvolatility．＆＃６０；／Ｐ＞
＜H２＞EconomicFactorsCouldBoostCryptoProspects ＜/H２＞
＜P ＞Certainmacroeconomicconditionsmayprovidefavormomentumgoingforward：CoinbaseanticipatestwointerestratereductionsbytheFederalReservethroughout2026whichcouldbenefitrisk-oninvestmentsincludingcryptocurrencies． ＆ＮＢＳＰ； ＆ＮＢＳＰ；
＜P ＞ThebroadereconomyappearsstablewithconsumerinflationsteadyataroundtwopointsevenpercentinDecembercoupledwithrealGDPexpandingbeyondfivepercentduringQ4―factorslikelysupportivetowardpositivesentimentsurroundingdigitalcurrencies． ＆ＮＢＳＰ； ＆ＮＢＳＰ；