Coinbase’s Q2 2026 report revealed eye-catching findings about sentiment and market expectations for Bitcoin. The company’s survey shows that even though Bitcoin remains below $80,000, the majority of investors believe the cryptocurrency is still trading beneath its true value.
Strong undervaluation perception among institutional investors
Coinbase, one of the world’s leading crypto exchanges, surveyed over 91 international investors—both institutional and retail—about how they view Bitcoin’s pricing. According to the results, 75% of institutions and 61% of individual investors think Bitcoin is undervalued at current levels. In sharp contrast, only 7% of institutional and 11% of individual respondents consider Bitcoin overpriced.
The report emphasized that these sentiment indicators haven’t shifted significantly since December 2025. David Duong, Coinbase’s Global Head of Research, pointed to ongoing stability in market trends.
Coinbase’s research team observed that “a very large portion of institutional investors believe the current price of Bitcoin is below its true value, with geopolitical risks and global economic uncertainty also shaping this perception.”
Economic uncertainty and Fed leadership change
Coinbase characterized its outlook for the wider crypto market in the second quarter as “neutral,” attributing this stance primarily to geopolitical tensions in the Middle East and global economic uncertainty. Additional caution comes from the International Monetary Fund’s revision of its 2026 global growth forecast down to 3.1% from 3.4%, while Oxford Economics warned that a potential oil shock could see growth drop to as low as 1.4%—factors feeding into a more measured mood across crypto markets.
Meanwhile, the US Federal Reserve is in the midst of a significant leadership transition. On April 29, 2026, Chair Jerome Powell left benchmark interest rates unchanged within the 3.50-3.75% range and announced his term would conclude on May 15. However, Powell did confirm he would remain on the Fed board. With President Donald Trump expected to nominate Kevin Warsh as the new chair, Powell’s ongoing presence on the board may introduce unpredictability into forthcoming policy directions.
Krishna Guha, vice chair at Evercore ISI, praised Powell’s tenure for bringing inflation down “without causing a recession” and emphasized his defense of central bank independence during turbulent times.
ETF flows and Bitcoin’s market position
Continued interest from institutional players is evident in the roughly $2 billion that has flowed into spot Bitcoin ETFs since the start of the year. Adrian Fritz, investment director at 21Shares, underlined that Bitcoin’s daily trading volume now exceeds $50 billion, putting it in league with corporate giants like Nvidia. Fritz also added that the influx of institutional capital has transformed Bitcoin into an “institution-ready” asset.
The entry of major asset managers such as Morgan Stanley is widely seen as reinforcing demand for Bitcoin. Analysts suggest this trend is anchored in solid fundamentals rather than short-term speculation, marking a structural strengthening in Bitcoin adoption.
Adrian Fritz expressed confidence that Bitcoin can maintain its current price range and, if market conditions remain favorable, could approach $100,000 by year-end.
Altogether, these developments point to a robust conviction among investors that Bitcoin remains undervalued, while the impending transition at the Fed is being watched closely for its potential impact on the crypto market.
