Most Institutions Say Bitcoin Is Undervalued as Gold Hits $5K: Coinbase
Around 70% of institutional investors believe Bitcoin is undervalued in the $85,000 to $95,000 range, even as the asset continues to lag behind traditional safe havens and equities, according to new data from Coinbase.
The crypto exchange’s Charting Crypto Q1 2026 report found that 71% of institutional investors and 60% of independent investors surveyed between early December and early January consider Bitcoin undervalued at current prices.
Another 25% of institutional respondents view it as fairly priced, while only 4% believe it is overvalued.
The survey was conducted as Bitcoin remained tightly range-bound between $85,000 and $95,000 — a period marked by stalled momentum following a sharp correction in October that erased more than $19 billion in leveraged positions.
At the time of publication, Bitcoin trades near $87,900, down more than 30% from its all-time high of $126,080 set in early October, according to CoinGecko.
BTC price performance (Source: CoinGecko)
Sideways Price Action and Global Tensions Weigh on Sentiment
Market sentiment has struggled to recover since the October crash, with investors navigating a mix of macro uncertainty and heightened geopolitical risk.
Coinbase noted that renewed tariff threats from the Trump administration and ongoing instability in the Middle East have created a difficult environment for risk assets.
“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,” the report warns.
Crypto markets have reflected that anxiety. Bitcoin has been unable to reclaim previous highs, and altcoins have similarly drifted sideways or trended lower. Meanwhile, traditional hedges and equities have outperformed sharply.
Gold surged to a record high above $5,000 on Monday, while silver has doubled in value since October. The S&P 500 has climbed a modest but steady 3% over the same period, making the crypto market’s stagnation even more pronounced.
Institutions Preparing to Hold or Buy the Dip
Despite the macro headwinds, most institutional investors appear unfazed by recent volatility. Coinbase found that 80% of institutions would either hold their positions or increase exposure if crypto markets fell another 10% from current levels.
That conviction is already showing in positioning. Coinbase reported that over 60% of institutional investors have held or added to their crypto allocations since Bitcoin hit its record high in October. Many appear comfortable viewing the current period as an opportunity rather than an exit signal.
Institutions also see the broader market cycle as favorable. 54% of respondents believe the crypto market is currently in either an accumulation phase or a bear market, both traditionally viewed as attractive entry periods for long-term investors.
Macro Tailwinds Could Lift Crypto in 2026
While the Federal Reserve’s policy path remains uncertain, Coinbase expects the central bank to deliver two interest rate cuts in 2026, potentially easing financial conditions and boosting risk-on assets such as cryptocurrencies.
More broadly, the report highlights that underlying economic conditions may ultimately support a market rebound. The U.S. economy is “on solid footing,” Coinbase said, pointing to 2.7% consumer inflation in December and real GDP growth exceeding 5% in Q4.
If these economic trends continue and geopolitical pressures stabilize, institutional appetite — already strong — could position Bitcoin for renewed momentum later in the year.
For now, however, the divergence between crypto and traditional assets remains stark. With gold at record highs, silver soaring, and stocks grinding upward, Bitcoin’s relative underperformance is hard to miss. Yet, according to Coinbase’s data, many of the market’s most influential players view that weakness not as a warning sign, but as a buying opportunity.
