Coinbase Survey Reveals Bitcoin Undervalued Between $85K–$95K

Institutional investors remain confident in Bitcoin despite recent market declines. A Coinbase survey conducted from early December 2025 to early January 2026 found that 71% of institutions believe Bitcoin is undervalued between $85,000 and $95,000. Independent investors also see value, though to a slightly lesser extent, with 60% sharing this view.

Bitcoin is trading at $87,600, down more than 30% from its October peak of $126,080, CoinGecko data shows. The decline followed a major market crash on October 10 that wiped out over $19 billion in leveraged positions.

Despite volatility, 80% of surveyed institutions reported they would hold their positions or buy more if prices fell another 10%, reflecting strong long-term confidence.

Also Read: UK FCA Nears Final Consultation on Crypto Regulation in 2026

Market Challenges and Geopolitical Pressures

Crypto sentiment has struggled to rebound amid economic and geopolitical uncertainty. Renewed tariff threats from the U.S. administration and tensions in the Middle East have added investor caution. Any escalation affecting energy markets could further suppress price recovery.

Meanwhile, the traditional safe havens have been leading the charge. Gold has broken records to above $5,000, while silver has doubled in value since October.

During the same period, the S&P 500 is up about 3%. This dichotomy reflects the continued wariness of crypto, despite slowly increasing institutional sentiment.

Institutional Strategies and Economic Outlook

Institutional investors are preparing for future market volatility. Over 60% of institutional investors reported holding or increasing their crypto holdings since October, and 54% of institutional investors believe that the current market is either in an accumulation phase or a bear market.

However, the broader economic trends could support this view. Coinbase predicts that there will be two cuts in the Fed rate in 2026, which could shift the market sentiment in favor of risk-on assets.

Consumer price inflation remained at 2.7% in December 2025, and real GDP growth exceeded 5% in Q4, indicating that the economy is on a strong footing.

Why This Matters

The confidence of investors in Bitcoin shows market potential, despite the volatility and macroeconomic factors that are influencing the global sentiment on cryptocurrencies.

The fact that institutional investors are strongly behind Bitcoin shows that there are investment opportunities in the cryptocurrency, despite the possibility of price drops.

Also Read: Litecoin Holders Defend Key Support, Eyes Rebound Toward $90