70% of Institutions View Bitcoin as Undervalued: Coinbase Q1 2026 Report
While Bitcoin trades significantly below its October peak, institutional investors see an opportunity rather than a crisis. According to Coinbase’s “Charting Crypto Q1 2026″ report, a staggering 70% of institutional participants believe Bitcoin is currently undervalued, signaling strong long-term confidence despite market turbulence.
The survey, which included 148 investors (75 institutional and 73 retail), reveals a clear consensus: the current price does not reflect the asset’s true worth. According to the participants, the fair value range for Bitcoin lies between $85,000 and $95,000.
While 25% of institutions see the current pricing as fair, only a tiny fraction—4%—believe Bitcoin is expensive at these levels. Interestingly, institutional investors are more bullish than retail; 71% of institutions call it undervalued compared to 60% of retail investors.
The Price Gap and Market Pressure
Data from CoinMarketCap shows Bitcoin trading around $87,831 (down 0.34% in the last 24 hours). This level is more than 30% below the all-time high of $126,080 recorded in October.
Analysts attribute this lingering price pressure to the massive market crash on October 10, which saw over $19 billion in leveraged positions liquidated. The market has struggled to stage a powerful recovery since that event.
Adding to the complexity is the geopolitical landscape. US President Donald Trump’s recent threats regarding new tariffs have heightened trade tensions between the US and the Middle East, dampening risk appetite across global markets.
The Flight to Safety: Gold Hits $5,000
Coinbase’s report highlights that geopolitical risks and potential conflicts affecting energy markets are weighing on investor sentiment. In this climate of uncertainty, capital has flowed toward traditional safe havens:
- Gold broke a new record on Monday, January 26, surpassing $5,000.
- Silver’s market cap has doubled since October.
- In contrast, the S&P 500 has risen only 3% in the same period.
Institutions are Playing the Long Game
Despite the price correction, smart money isn’t leaving. The survey reveals a resilient “diamond hands” mentality among institutions:
- 80% of institutional investors plan to maintain or increase their positions if the crypto market drops another 10%.
- Over 60% have kept their crypto holdings steady or increased them since the October peak.
Macro Outlook: Accumulation and Rate Cuts
The majority of investors (54%) view the current cycle as an “accumulation phase” or a bear market, suggesting they are patiently building positions for the next leg up.
Coinbase offers a silver lining in its macroeconomic outlook. With US consumer inflation holding steady at 2.7% in December and the economy growing by over 5% in Q4, the report suggests the Federal Reserve may implement two interest rate cuts this year. Such a move would likely provide the liquidity boost needed to reignite momentum for risk assets like cryptocurrencies.
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