Survey Shows Crypto Investors Overwhelmingly View Bitcoin as Underpriced
Recent survey data from Coinbase combined with blockchain analytics indicate Bitcoin remains underpriced and may be approaching the conclusion of its bearish cycle.
Over 70% of cryptocurrency investors view Bitcoin (BTC) as trading below its fair value, based on findings from a recent Global Investor Survey that Coinbase and Glassnode carried out.
Survey results revealed that 82% of institutional participants and 70% of retail participants characterize the current market conditions as a late-stage bear cycle markdown phase, while blockchain-based metrics indicate BTC is moving into a "value-accumulation zone."
Bitcoin remains in late bear phase with persistent undervaluation
Between March 16 and April 7, Coinbase Institutional Research polled 91 investors worldwide, consisting of 29 institutional entities and 62 non-institutional participants. The survey responses demonstrate a dramatic change in how participants perceive the present BTC market environment.
Approximately 82% of institutional respondents and 70% of retail respondents currently characterize the market as being in a late bear phase or markdown stage, representing a significant increase from roughly one-third who held this view in December.
Meanwhile, opinions regarding valuation remained relatively consistent. Approximately 75% of institutional investors and 61% of retail investors regard Bitcoin as undervalued. Only a minimal percentage identified it as being overpriced.
The survey additionally highlighted a change in expectations surrounding Bitcoin dominance. The percentage of institutional investors anticipating dominance to increase fell to 25% from 40%. Approximately 54% now anticipate it will stay around the current level of 58.1%, while 21% foresee a decrease.
Blockchain indicators point to value zone for Bitcoin
Blockchain analytics corroborate the valuation perspective for Bitcoin. The Bitcoin Combined Market Index (BCMI) developed by crypto analyst Woominkyu consolidates MVRV, NUPL, SOPR, and investor sentiment into one comprehensive reading. The index recently climbed to 0.37 from 0.26, a threshold that has historically been associated with deep undervaluation phases.
The MVRV indicator contrasts market value against realized value, whereas NUPL monitors net unrealized profit and loss among holders. The SOPR evaluates whether coins are being sold at a profit or a loss. When combined, these indicators provide a unified perspective on both pricing dynamics and investor behavior.
The BCMI's 90-day average is continuing its downward trajectory, indicating persistent selling pressure. Nevertheless, earlier this month, Woominkyu stated:
"We are entering a 'Value-Accumulation Zone.' The data suggests the downside is becoming limited compared to the long-term upside."
Short-term holder activity provides additional context. The realized cap UTXO age bands for one-week to one-month holders declined to 3.91%, aligning with October 2023 levels when BTC was trading around $27,000. This particular metric monitors the proportion of recently transferred coins, serving as an indicator for short-term liquidity and speculative price activity.
Throughout history, Bitcoin has established cycle lows within three to six months following comparable readings since 2021. In March, market analyst Crypto Dan observed that the indicator has experienced a substantial drop, positioning the BTC market close to undervalued territory while not yet confirming a definitive bottom.
