Institutional Investors Buy Undervalued Bitcoin: The Survey Revealing Market Confidence

CoconutWaterBoy · 2026-02-02T13:04:46+00:00

Recent research indicates that institutional investors are optimistic about Bitcoin, with 71% believing it is undervalued. In contrast, only 60% of retail investors share this view, highlighting the greater confidence among institutions. Many are ready to buy more if prices drop further, seeing corrections as opportunities. The anticipated interest rate cuts by the Federal Reserve could also positively impact risky assets like Bitcoin.

CoconutWaterBoy

2026-02-02 13:04:46

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A recent study highlights an optimistic sentiment among institutional investors regarding Bitcoin. According to data from NS3.AI, 71% of these investors believe that Bitcoin is currently undervalued, a figure significantly higher than the 60% consensus among retail investors. This gap reflects greater institutional confidence in the asset’s recovery potential.

Why Institutional Investors Show Greater Conviction

Institutional investors not only perceive the current price as low but also demonstrate a willingness to act. 80% would be inclined to hold their positions or increase their purchases if Bitcoin experiences an additional 10% drop. This attitude suggests that institutional investors see corrections as accumulation opportunities, not warning signs.

The Gap Between Institutional and Retail Investors Widens

The contrast between these two segments is revealing. While retail investors exhibit more caution, institutional investors maintain a more constructive outlook. More than half of the total investor universe agree that the cryptocurrency market is either in an accumulation phase or undergoing a correction. This bifurcated perception indicates that large capital is strategically positioning itself.

Rate Cuts and the Catalyst for Risk Assets

A key element in these investors’ confidence is the anticipation of possible interest rate reductions by the Federal Reserve. Historically, such moves have favored risk assets like Bitcoin, creating a potentially favorable environment for price appreciation. Institutional investors seem to be preparing for this scenario.

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