Coinbase Reports Institutional Optimism as Bitcoin Declines

Coinbase’s recent report highlights that 71% of institutional investors find Bitcoin undervalued at its current price of $87,600, with predictions of improved market stability in Q1 2026.

This perspective signals potential market support despite Bitcoin’s decline since October, emphasizing a continued investor focus amid economic shifts and anticipated Federal Reserve rate cuts.

Institutional Investors Strong Amid 30% Bitcoin Decline

Bitcoin’s decline from a record high of $126,080 in October to $87,600 has not deterred institutional investors. According to Coinbase’s report, a significant number of institutional investors remain optimistic about Bitcoin’s current value despite the drop.

Survey results show that 71% of institutions and 60% of individual investors perceive Bitcoin as undervalued between $85,000 and $95,000. “71% of institutions and 60% of individuals view Bitcoin as undervalued at $85,000-$95,000,” noted David Duong, Head of Global Investment Research at Coinbase Institutional. More than half of the institutional investors are prepared to hold or increase their holdings if the market declines further.

Market observations indicate limited reactions from investors, with 80% of surveyed institutions ready to maintain or expand positions despite potential drops. These findings underscore continued confidence in Bitcoin’s long-term potential within institutional circles.

Fed Rate Actions Could Boost Crypto Appeal

Did you know? Bitcoin reached an all-time high of $126,080 in October 2025 but has since seen a substantial decline, highlighting its volatility. Interestingly, amidst this, gold’s price has risen significantly above $5,000, contrasting with Bitcoin’s current dip.

Bitcoin (BTC) stands at $87,768.40, with a market cap of approximately $1.75 trillion, dominating 59.19% of the market. Its 24-hour trading volume surged by 196.49%, equating to $45.33 billion, though recent months show varied performance trends from a 22.97% decline over 90 days to slight month-on-month gains.

As noted by the Coincu research team, anticipated Federal Reserve rate cuts could stimulate market interest in cryptocurrencies, aiming to align economic policies that might usher in a favorable shift in investment sentiment across digital assets.