Coinbase Survey Reveals Strong Institutional Bullishness on Bitcoin’s Undervaluation

A recent Coinbase survey indicates that despite Bitcoin's 30% decline from its October 2025 peak to around $87,600, institutional investors remain overwhelmingly confident in its long-term value. The findings show that 71% of institutional respondents view Bitcoin as currently undervalued, with a consensus fair value estimate between $85,000 and $95,000. Retail investor sentiment, while slightly more cautious, also leans bullish, with 60% agreeing that Bitcoin trades below its intrinsic worth. This optimism persists even as the market grapples with the aftermath of October's significant deleveraging event, which wiped out approximately $19 billion in Leveraged positions, and ongoing geopolitical uncertainties that have injected volatility into the crypto landscape. The survey underscores a notable divergence between price action and fundamental conviction, suggesting that seasoned investors are using the pullback as a strategic accumulation opportunity. Coinbase's data highlights a maturing market where institutional players, often with longer time horizons, are less swayed by short-term turbulence and more focused on Bitcoin's structural value proposition. This institutional faith could provide a stabilizing foundation for Bitcoin's price discovery moving into 2026, acting as a counterbalance to retail-driven sentiment swings. The report ultimately paints a picture of a market in a phase of consolidation, where weak hands have been shaken out, and committed capital is positioning for the next cycle, with Coinbase serving as a key barometer for this professional investor mindset.

Coinbase Survey Shows Institutional Confidence in Bitcoin Despite Market Volatility

Bitcoin's current valuation of $87,600—down 30% from its October peak—is seen as undervalued by 71% of institutional investors surveyed by Coinbase, with a projected fair value range of $85,000–$95,000. Retail investors share this optimism, albeit slightly tempered, with 60% agreeing on the undervaluation.

The market remains wary. October's $19 billion leveraged position wipeout and geopolitical tensions—from U.S. tariff threats to Middle East instability—have suppressed crypto's recovery. Yet 80% of institutions WOULD hold or buy more if prices dropped another 10%, signaling long-term conviction.

Traditional SAFE havens like gold (now above $5,000) and silver (doubled since October) outperform. The S&P 500's modest 3% gain contrasts sharply with crypto's struggles, highlighting persistent risk-off sentiment despite growing institutional interest.

Bitcoin Weathers the Storm Without Losing Its Supporters

Institutional investors are signaling confidence in Bitcoin's long-term value despite its recent price slump. A Coinbase survey reveals 71% of professional desks view BTC as undervalued between $85,000-$95,000—a striking contrast to its 30% decline since October's peak.

The crypto market remains fragile, with macro conditions and political factors creating volatility. Yet the survey of 148 investors (75 institutional) suggests seasoned players see current levels as a buying opportunity rather than a reason for retreat.

Liquidation waves continue rattling retail traders, but institutions appear to be evaluating bitcoin through a different lens. When the chart alarms amateurs, professionals see discounted entry points—a divergence that often precedes market inflection.

ARK Invest Seizes Market Dip to Boost Crypto Equity Holdings

ARK Invest, Cathie Wood's asset management firm, made strategic moves in the crypto space on January 23, purchasing $9.4 million worth of Coinbase shares alongside positions in Circle and Bullish. The acquisitions occurred during a broad market retreat that saw crypto-related stocks under pressure.

The firm's flagship ARK Innovation ETF (ARKK) and ARK Fintech Innovation ETF (ARKF) executed the purchases as Coinbase shares declined alongside the broader crypto market. ARK's trading disclosures reveal a deliberate portfolio rebalancing, reducing exposure to select tech giants in favor of crypto infrastructure plays.

This marks ARK's first significant crypto-equity accumulation of 2026, demonstrating continued conviction in the sector despite recent underperformance. The buying spree coincides with ongoing weakness across digital asset markets, with Coinbase's stock movement reflecting ETF-related volatility.