26% of Institutions Call a Bear Market: What This Could Mean for Investors

A current survey by Coinbase Institutional and Glassnode reveals that round one-quarter of each institutional and non-institutional buyers view the crypto market as being in a bear part.

Despite this, buyers imagine Bitcoin (BTC) is undervalued. The insights spotlight a complicated shift in investor psychology amid combined macroeconomic alerts and ongoing volatility in early 2026.

Investors Classify the Crypto Market as Bearish

The findings are primarily based on a survey of 148 respondents carried out between December 10, 2025, and January 12, 2026, together with 75 institutional and 73 non-institutional buyers. Around 26% of institutional respondents and 21% of non-institutional respondents reported that they imagine the crypto market is at present in a bear market (markdown) part.

This represents a sharp enhance in contrast with the earlier survey, the place solely 2% of institutional and seven% of non-institutional respondents expressed this view.

These perceptions are in step with alerts from the Bull-Bear Market Cycle Indicator. It has stayed beneath zero since October, which additionally means that Bitcoin is at present in a bear market.

Furthermore, Julio Moreno, Head of Research at CryptoQuant, informed BeInCrypto that Bitcoin appears to be experiencing early phases of a bear market, citing weakening demand as the first issue behind this evaluation.

“Basically each on-chain metric or market metric confirms that we’re in a bear market within the early phases,” he acknowledged in a BeInCrypto podcast episode.

Bitcoin Undervaluation Narrative Strengthens as Investors Hold Firm

Despite this, the survey information factors to a notable disconnect between short-term sentiment and long-term conviction. After the October 2025 deleveraging occasion, bear market perceptions rose, however precise investor actions inform a totally different story.

As detailed within the Coinbase and Glassnode report, 62% of establishments and 70% of non-institutional buyers have both held or grown their crypto allocations since October 2025.

Additionally, 49% of institutional respondents and 48% of non-institutional respondents acknowledged that a short-term value drop of greater than 10% wouldn’t immediate any adjustments to their present allocations, as they intend to proceed holding present positions.

Meanwhile, 31% of institutional buyers and 37% of non-institutional buyers indicated they’d purchase the dip beneath such circumstances. This confidence is additional underscored by valuation views, with 70% of establishments and 60% of non-institutional buyers stating that Bitcoin is undervalued.

This means that buyers do acknowledge bearish circumstances, however their actions indicate long-term confidence reasonably than risk-off conduct. This creates a market surroundings characterised by warning, selective accumulation, and valuation-driven positioning reasonably than widespread disengagement.

Coinbase and Glassnode Share Q1 2026 Crypto Market Outlook

The respondents usually are not alone in sustaining a bullish outlook. David Duong, CFA, Global Head of Research at Coinbase Institutional, together with an analyst from Glassnode, additionally famous that their view on the crypto market in Q1 2026 remains constructive.

“Our outlook on crypto markets is constructive to start out the brand new 12 months, though the clouds from final yearʼs leverage-fueled liquidations haven’t cleared totally,” they wrote.

They outlined a number of elements that help their outlook:

• Supportive inflation tendencies: Inflation held regular at 2.7% within the newest December CPI studying, easing considerations in regards to the potential impression of tariffs.
• Resilient financial development: As of January 14, the Atlanta Fed’s GDPNow mannequin projected actual GDP development of 5.3% for the fourth quarter of 2025.
• Potential financial coverage tailwinds: The analysts urged that the Federal Reserve will doubtless ship 2 rate of interest cuts totaling 50 foundation factors, as at present priced into Fed funds futures. Such easing would doubtless present help for danger property, together with cryptocurrencies.

They additionally added that their outlook might change into extra constructive if there’s main coverage progress within the US, notably around the CLARITY Act. Such developments might encourage broader participation within the crypto market and assist strengthen general investor sentiment.

“What would make us extra involved: A significant uptick in inflation, a spike in power costs, or a important flare up of geopolitical tensions might warrant a extra cautious strategy to danger property,” the report learn.

What the Current Crypto Market Setup Could Mean for Investors

Amid this backdrop, some crypto market members view the present surroundings as an opportunity reasonably than a capitulation part. Data from Santiment exhibits that the 30-day Market Value to Realized Value (MVRV) ratios for several large-cap cryptocurrencies are adverse.

According to the agency, property similar to Chainlink, Cardano, Ethereum, and XRP at present seem undervalued primarily based on this metric, whereas Bitcoin is taken into account mildly undervalued. Santiment famous that decrease 30-day MVRV readings sometimes counsel decrease danger for including or opening positions.

“A coin having a adverse share means common merchants you’re competing with are down cash, and there is a chance to enter whereas earnings are beneath the conventional ‘zero-sum recreation’ stage. The extra adverse, the extra protected it’s for you to purchase,” the post learn.

In addition, analyst CyrilXBT drew consideration to the market sentiment. The analyst famous the Crypto Fear & Greed Index stays in “worry,” however has not reached panic ranges. According to CyrilXBT,

“That’s often the place boredom and frustration peak, not the place markets break. Historically, that is the place positioning occurs quietly earlier than path exhibits itself.”

Overall, the survey outcomes and supporting market information level to a nuanced market part reasonably than outright capitulation. While a rising share of buyers now determine present circumstances as bearish, sustained allocations and widespread undervaluation views counsel that long-term conviction stays intact.

Nonetheless, the market stays notably risky, with macroeconomic headwinds persevering with to exert a substantial affect, highlighting the significance of maintaining caution.

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