Institutions See Bitcoin Undervalued as Price Holds Below $90,000

Most institutional investors believe Bitcoin is priced too low despite weak recent performance, according to a new report from Coinbase. The view comes as Bitcoin trades well below its peak and continues to lag behind gains in metals and stocks.

Coinbase said its Charting Crypto Q1 2026 report surveyed 75 institutional investors and 73 independent investors between early December and early January. During that period, Bitcoin traded mostly between $85,000 and $95,000.

Survey Shows Strong Undervaluation View

The survey found that 71% of institutional investors believe Bitcoin is undervalued at current levels. Among independent investors, 60% shared the same view. About 25% of institutions said Bitcoin was fairly priced, while just 4% said it was overvalued.

At the time of writing, Bitcoin is trading near $87,700. That price is more than 30% below its all time high of $126,080 reached in October.

The drop followed a sharp market crash on Oct. 10, when more than $19 billion in leveraged positions were wiped out. Since then, prices across the crypto market have moved sideways or lower, with little follow through buying.

Macro Pressure Weighs on Crypto

Market sentiment has failed to recover amid wider global pressure. Coinbase pointed to renewed tariff threats from the Trump administration and rising tension between the U.S. and the Middle East as key risks. The firm warned that any escalation that disrupts energy supply could further hurt investor appetite.

While crypto has stalled, other assets have surged. Gold reached a record high above $5,000 on Monday. Silver has doubled in market value since October. By comparison, the S&P 500 index is up about 3% over the same period.

This gap has added to the view among institutions that Bitcoin is lagging rather than peaking.

Institutions Plan to Hold or Buy

Despite near term weakness, institutions are not rushing for the exit. Coinbase said 80% of surveyed firms plan to either hold or buy more crypto if prices fall another 10%.

More than 60% said they have held or increased crypto exposure since October, even as prices dropped. Over half of institutions see the current phase as either accumulation or a bear market, pointing to longer time frames rather than short term moves.

Coinbase expects two interest rate cuts from the Federal Reserve in 2026, which could support risk assets if delivered. The firm also noted stable economic data, with inflation at 2.7% in December and real GDP growth above 5% in the fourth quarter.