Is Bitcoin Undervalued? Wall Street Gears Up for a Rally

Bitcoin has been struggling lately while gold shines, yet institutional investors remain unfazed. Despite Bitcoin trading around 30% below its all-time high following the October crash, the big money sees not a failure but an opportunity. The prevailing belief among professionals: the market is significantly undervaluing this digital asset. According to the "Charting Crypto Q1 2026" report from US exchange Coinbase, a notable consensus exists among market heavyweights. Approximately 71% of surveyed institutional investors consider Bitcoin undervalued at its current price between $85,000 and $95,000. In stark contrast, only a mere 4% of professionals view the current price as inflated. The gap between expectation and reality is evident. Bitcoin currently hovers around $87,600, a far cry from the $126,080 seen in early October. The reason for this dip was a massive sell-off on October 10 that wiped out leveraged positions worth over $19 billion, leaving the market unsettled.

Safe Havens Surge, Crypto on the Sidelines

While Bitcoin fluctuates, traditional alternatives are making a comeback. Gold recently surpassed the $5,000 mark, hitting a record high, and silver has doubled its market value since October. Even the S&P 500 managed a modest three percent gain over this period. Retail investor skepticism is mainly due to macroeconomic headwinds. Renewed tariff threats from the Trump administration and escalating tensions in the Middle East are dampening sentiment. Coinbase warns that disruptions in energy markets could further diminish risk appetite.

Accumulation Phase

Professionals, however, remain undeterred. The survey shows steadfast commitment: 80% of institutional investors said they would either hold or increase their positions if prices drop another 10%. The strategy is clear: buy the dip. Over half of the experts surveyed (54%) categorize the current cycle as either an accumulation phase or a bear marketboth scenarios that favor long-term buyers. Portfolio managers, therefore, remain unfazed by current market noise. Despite geopolitical challenges, the fundamentals remain strong. The US economy grew over 5% in the fourth quarter, with inflation at a moderate 2.7%. Coinbase also anticipates that two interest rate cuts by the US Federal Reserve in 2026 could provide the necessary boost for riskier assets like Bitcoin. For those betting on Bitcoin for the long term, the current price level shouldn't be discouraging. Newcomers, meanwhile, may wait for a technical buy signal, such as a sustained breakout above the $94,000 resistance zone. Disclaimer: The executive board and majority owner of the publisher Börsenmedien AG, Mr. Bernd Förtsch, has direct and indirect positions in the financial instruments or related derivatives mentioned in the publication, which may benefit from any price development resulting from the publication: Bitcoin.