Institutional investors, about seven in ten surveyed, see Bitcoin as undervalued, based on Coinbase’s first-quarter 2025 report that included 75 institutional and 73 retail respondents between late 2024 and early 2025.

Retail investors share the undervaluation view, with roughly six in ten agreeing Bitcoin is undervalued, though institutions remain more bullish by about 11 percentage points.

The market context centers on post-2024 halving consolidation and ongoing regulatory clarifications in the US and EU, framing sentiment as measured rather than speculative.

Compared with equities and precious metals, gold and silver have rallied while crypto sentiment stays subdued amid geopolitical tensions and tariff concerns.

Context in 2025 includes the rollout of Bitcoin ETFs, improved custody and prime brokerage services, and a macro backdrop of geopolitical and debt concerns driving interest in decentralized assets.

Valuation drivers cited include Bitcoin’s network security, its role as a digital store of value, and growing decoupling from traditional tech stock correlations.

On-chain fundamentals remain robust, with hash rate near record levels and steady growth in active addresses and settlement volume supporting the undervaluation case.

Bitcoin trades around $87,600, roughly 30% below its October 2023 high, amid a broader market downturn and a major October crash that wiped out significant leveraged positions.

Macro policy and potential Fed rate cuts are seen as a catalyst; a weaker dollar could bolster Bitcoin and other risk assets, with possible upside if rates are cut in 2025 or 2026.

Valuation frameworks like Stock-to-Flow and NVT, plus comparisons of market cap to gold, underpin the narrative of undervaluation.

Institutional behavior signals durable buy-side support: 80% would hold or buy more if Bitcoin fell another 10%, and 54% see the current cycle as accumulation or bear market.

Overall, the survey points to a mainstream institutional view that Bitcoin is undervalued, with a bias toward strategic accumulation amid macro and policy considerations.