75% Of Institutions Now Call Bitcoin Undervalued

A new joint report from @coinbase and @glassnode suggests the majority of institutional and retail investors believe $BTC is trading below fair value — even as sentiment toward the broader market has turned sharply negative.

Institutions See Value, But Also a Bear Market

The Charting Crypto Q2 2026 report, produced in collaboration between Coinbase Institutional and Glassnode, finds that three-quarters of institutional investors and a large share of retail participants currently rate Bitcoin as undervalued. According to the report, 75% of institutions and around 61–71% of non-institutional investors view $BTC as undervalued, while only 7% of institutions consider it overvalued.

At the same time, bearish macro sentiment has surged. The report shows that 82% of surveyed institutions now place the market in a bear or late-bear phase — up sharply from just 31% in December 2025. That divergence between gloomy sentiment and bullish valuations is historically the kind of setup that precedes a market floor, not a breakdown.

The report also notes that despite a broad risk-off move in Q1, capital has not fully exited the space. Total crypto market capitalisation (excluding stablecoins) fell roughly 18%, yet stablecoin supply increased over the same period — suggesting investors are de-risking without fully disengaging, preserving optionality for re-entry.

On-Chain Signals and ETF Flows Add to the Case

Beyond sentiment, the on-chain setup is drawing attention. Glassnode's RHODL ratio — a metric that compares the wealth held by recent buyers against longer-term holders — is currently at its third-highest reading in Bitcoin's history. The only comparable prior readings occurred at the 2015 and 2022 cycle bottoms, both of which were followed by sustained bull markets.

ETF flows are also providing a constructive backdrop. April 2026 saw approximately $2.4 billion in net inflows into U.S. spot Bitcoin ETFs — the strongest monthly figure since October 2025. Cumulative net inflows since the January 2024 ETF launch now stand at $58.5 billion, with BlackRock's IBIT holding roughly 62% of the ETF market by share.

Taken together, the combination of historically depressed sentiment, a strong institutional undervaluation consensus, resilient ETF demand, and an elevated RHODL ratio paints a picture that leans toward a market bottom — though the report is careful to flag macro wildcards, including geopolitical tensions and central bank policy, as risks that could disrupt the setup.

Sources:
Glassnode – Coinbase + Glassnode: Charting Crypto Q2 2026
Charting Crypto Q2 2026 – Full PDF Report
BeInCrypto – Bitcoin Bottom or May Bust?