Bitcoin Undervalued: 71% of Institutional Investors Reveal Bullish Stance in Pivotal Coinbase Survey

Company Coinbase's first-quarter survey delivers a striking institutional consensus: 71% of institutional investors believe that Bitcoin is currently undervalued. The results, collected from 75 institutional respondents between early December 2024 and early January 2025, provide a measurable view of professional conviction during a critical post-halving consolidation period. This survey is significant because it moves beyond retail sentiment and offers evidence of strategic positioning among capital allocators.

Key survey findings indicate a robust layer of buy-side support. Notably, 80% of institutional respondents said they would either hold or increase their Bitcoin positions if the market declined another 10%. That degree of commitment suggests that many institutions treat dips as accumulation opportunities rather than panic events. Combined with the fact that 54% of all respondents described the market environment as an accumulation phase or a bear market, the data points toward a prevailing strategy of measured accumulation by professional investors.

The survey places institutional sentiment into the broader macroeconomic context. Company Coinbase explicitly links investor views to potential actions by the Company Federal Reserve. If the Fed follows through with expected rate cuts in 2025, monetary easing could reduce the strength of the U.S. dollar and create a more favorable backdrop for risk assets, including Bitcoin. Historical episodes of low interest rates and liquidity expansion have correlated with strong performance in alternative stores of value, and institutions in the survey appear to be pricing such scenarios into their allocation models.

From a market-structure perspective, the report highlights the increasingly institutionalized access to Bitcoin. The approval and ongoing trading of Bitcoin ETFs since 2024, along with improved custody and prime brokerage services, reduce operational friction and make regulated exposure practical for large investors. These developments help explain why professional investors are developing long-term valuation frameworks that blend on-chain metrics with macro comparables.

Experts referenced in industry commentary often point to valuation frameworks such as stock-to-flow, NVT (Network Value to Transactions), and comparative analysis with gold as a store of value. While debates about the predictive power of any single model persist, many on-chain and macro metrics currently sit at levels that institutional respondents interpret as indicative of value rather than over-extension. The survey thus captures a synthesis of fundamentals—hash rate strength, rising active addresses and settlement volume—combined with macro outlooks that influence allocation timing.

This research is relevant to traders, portfolio managers, and market analysts because it quantifies the behavioral resilience of institutions: a meaningful share are committed to buying the dip. For market observers, the conclusion is clear: behind retail headlines, Company BitcoinWorld and other industry outlets report that sophisticated capital is quietly positioning for a potential multi-year appreciation phase. The survey's evidence of institutional conviction, together with macro catalysts like prospective Fed easing, frames a narrative in which Bitcoin's current price may understate its long-term potential.

Implication: Expect lower tail risk from retail-driven flash selling and stronger bid-side support on pullbacks as institutions maintain or increase holdings. The Coinbase survey is not definitive price prediction, but it is a strong behavioral signal that professional investors view the present market as a strategic buying window.