Coinbase Institutional Data Reveals Bitcoin’s Resilience as Institutional Investors Defy Bear Market Sentiment

Despite clear bear market indicators from Coinbase Institutional and Glassnode, a striking 70% of institutional investors perceive bitcoin as undervalued, creating a notable paradox in the current market landscape. This sentiment underscores a strategic pivot toward Bitcoin during periods of market contraction, with October's deleveraging events disproportionately impacting more speculative altcoins. Data shows Bitcoin's market dominance has strengthened, rising from 58% to 59% in Q4 2025, reinforcing its role as a primary holding during turbulent times. The analysis suggests that institutions are viewing price weakness not as a failure of the asset, but as a long-term accumulation opportunity, separating Bitcoin's fundamental narrative from short-term price action. This institutional confidence, documented amidst a confirmed bear regime, highlights a maturing perspective where Bitcoin is increasingly treated as a strategic asset rather than a speculative bet, with its perceived store-of-value properties gaining precedence over pure momentum trading.

Institutional Investors See Bitcoin as Undervalued Despite Bear Market Sentiment

Nearly 70% of institutional investors believe Bitcoin remains undervalued even as Coinbase Institutional and Glassnode data confirms a bear market regime. This paradox reflects a strategic preference for Bitcoin over altcoins during market contractions.

October's deleveraging hit speculative tokens hardest, with Bitcoin dominance inching up from 58% to 59% in Q4 2025. 'Bitcoin becomes the asset you hold when cutting risk but staying in crypto,' notes David Duong of Coinbase Institutional. The data suggests not a broad retreat from digital assets, but a flight to quality.

Surveyed institutions maintained or increased exposure since October, concentrating positions in BTC rather than volatile altcoins. This selective risk-taking underscores Bitcoin's evolving role as a base LAYER for institutional crypto strategies.

GameStop Exits Bitcoin Position at Loss to Fund Consumer Sector Acquisition

GameStop is liquidating its entire Bitcoin holdings, signaling an abrupt end to its cryptocurrency venture. Blockchain data reveals the video game retailer moved 4,710 BTC—worth approximately $370 million at current prices—to Coinbase Prime, typically a precursor to sale execution. The position, acquired in May 2025 at an average of $107,900 per BTC, now reflects a $183 million unrealized loss amid Bitcoin's trading range NEAR $78,619.

The divestment coincides with CEO Ryan Cohen's stated ambition to pursue a transformative consumer sector acquisition. "Very, very, very big" was Cohen's only descriptor for the planned MOVE during recent interviews, suggesting strategic reallocation takes precedence over crypto exposure. Market observers note the sale pressure could temporarily weigh on BTC prices, though institutional absorption capacity remains robust.