Invest ideasNews
26 Jan 2026, 05:10
Bitcoin Undervalued: 71% of Institutional Investors Reveal Bullish Stance in Pivotal Coinbase Survey
BitcoinWorld Bitcoin Undervalued: 71% of Institutional Investors Reveal Bullish Stance in Pivotal Coinbase Survey In a significant development for digital asset markets, a comprehensive Coinbase survey reveals a powerful consensus: 71% of institutional investors now view Bitcoin as fundamentally undervalued. This data, emerging in the first quarter of 2025, provides a crucial snapshot of professional sentiment during a period of notable market recalibration. The findings suggest a deepening conviction among major financial players, potentially signaling a strategic accumulation phase ahead of anticipated macroeconomic shifts. This institutional perspective stands in contrast to some public narratives, offering a data-driven window into the strategies of capital allocators who are increasingly integrating cryptocurrency into their portfolios. Bitcoin Undervalued According to Institutional Majority Coinbase’s first-quarter cryptocurrency market report, released in March 2025, delivers a compelling narrative based on direct investor feedback. The exchange surveyed 75 institutional investors and 73 retail investors between early December 2024 and early January 2025. The core finding is stark: a 71% majority of institutional respondents believe Bitcoin’s current market price does not reflect its underlying value or long-term potential. Furthermore, this institutional bullishness slightly outpaces retail sentiment, where 60% of respondents shared the view that Bitcoin is undervalued. This divergence highlights a growing sophistication gap, as professional investors often employ more rigorous valuation frameworks and longer time horizons. The survey’s timing is particularly instructive. It was conducted following a period of consolidation after the 2024 halving event and amidst ongoing regulatory clarifications in major economies like the United States and the European Union. Consequently, this sentiment data reflects a measured, post-volatility assessment rather than speculative frenzy. Analysts often cite several factors that could contribute to an “undervalued” perception, including the maturation of Bitcoin’s network security, its evolving role as a digital store of value, and its increasing correlation-disconnect from traditional tech stocks. Deep Analysis of Investor Sentiment and Behavior Beyond simple valuation beliefs, the Coinbase report delves into probable investor behavior under stress, revealing even stronger conviction. A remarkable 80% of institutional respondents indicated they would either maintain their current Bitcoin holdings or actively purchase more if the cryptocurrency market experienced a further 10% decline. This statistic is critical for understanding market structure. It suggests a substantial layer of buy-side support exists, which could dampen future downside volatility. Such resilience points to a maturation in investor mindset, treating pullbacks as opportunities rather than reasons for panic. Regarding market cycle identification, the survey found a nuanced view among all participants. A combined 54% of respondents characterized the current environment as either an “accumulation phase” or a “bear market.” This terminology is significant. An accumulation phase implies smart money is building positions quietly, often preceding a major bullish move. The data can be broken down further for clarity: Institutional Resilience: 80% commitment to hold or buy on dips. Market Cycle View: Majority see accumulation/bear phase, not a bubble top. Retail Caution: Retail investors show slightly less conviction (60%) than institutions. Strategic Patience: Sentiment suggests a focus on long-term fundamentals over short-term price action. The Federal Reserve’s Pivotal Role in Crypto Valuation The Coinbase report explicitly connects cryptocurrency valuation to broader monetary policy, a key marker of its analytical depth. It suggests that if the Federal Reserve executes two benchmark interest rate cuts in 2025, the resulting monetary easing could create a highly favorable environment for risk assets, including Bitcoin. Historically, periods of low interest rates and expanding money supply have correlated with strong performance in alternative stores of value. This analysis moves beyond crypto-specific news, anchoring Bitcoin’s potential in the global macroeconomic landscape. This perspective is supported by historical precedent. For instance, the post-2020 period of expansive fiscal and monetary policy coincided with Bitcoin’s rise from approximately $10,000 to its all-time high. Investors now monitor Fed statements, inflation data, and employment figures as closely as any blockchain metric. The potential for rate cuts could weaken the U.S. dollar index (DXY), historically a bullish inverse indicator for Bitcoin’s dollar-denominated price. Therefore, the survey captures a moment where traditional finance and digital asset theories are converging. Contextualizing the Survey in the 2025 Landscape To fully appreciate these findings, one must consider the unique financial landscape of early 2025. Several concurrent developments provide essential context. First, Bitcoin Exchange-Traded Funds (ETFs) approved in 2024 have now seen full quarters of trading, providing institutions with regulated, familiar vehicles for exposure. Second, major custodial and prime brokerage services for digital assets have become more robust, reducing operational friction for large investors. Third, geopolitical tensions and concerns about sovereign debt levels have renewed interest in non-sovereign, decentralized assets. Furthermore, Bitcoin’s network fundamentals remain strong. The hash rate, a measure of computational security, continues to hover near all-time highs. Adoption metrics, such as the number of active addresses and settlement volume, show steady growth. When institutional investors cite “undervalued,” they are likely synthesizing these on-chain fundamentals with macro-financial models. Their stance is not based on sentiment alone but on a growing body of data treating Bitcoin as a unique asset class with distinct drivers. Evidence and Expert Perspectives on Valuation Models While the survey reports sentiment, the underlying belief in undervaluation often stems from specific models. Experts frequently reference several frameworks. The Stock-to-Flow model, which assesses scarcity based on new supply issuance, is one historical benchmark, though its predictive power is debated. Network Value-to-Transactions (NVT) ratios, similar to PE ratios in equities, compare market cap to on-chain transaction volume. Currently, many of these metrics sit at levels historically associated with value rather than over-extension. Additionally, the growing practice of comparing Bitcoin’s market capitalization to the market cap of gold as a store of value provides a long-term narrative. If Bitcoin captures even a single-digit percentage of gold’s multi-trillion dollar valuation, its price would multiply significantly. Institutional investors, particularly those from hedge funds and family offices, are increasingly employing these comparative analyses, which may explain the strong undervaluation sentiment captured by Coinbase. Conclusion The Coinbase survey provides powerful, quantifiable evidence that a dominant majority of institutional investors perceive Bitcoin as undervalued in the current market. This sentiment, coupled with a declared intention to buy during downturns, paints a picture of strategic accumulation and deepening conviction. The linkage of this outlook to anticipated Federal Reserve policy underscores how intertwined cryptocurrency markets have become with traditional macroeconomics. For market observers, this data is a critical gauge of professional sentiment, suggesting that behind the scenes, sophisticated capital is positioning for what it believes is Bitcoin’s next significant chapter. The belief that Bitcoin is undervalued is now a mainstream institutional view, a profound shift from the skepticism of just a few years ago. FAQs Q1: What percentage of retail investors think Bitcoin is undervalued? According to the same Coinbase survey, 60% of retail investors share the view that Bitcoin is currently undervalued, which is slightly lower than the 71% of institutional investors. Q2: How might Federal Reserve interest rate cuts affect Bitcoin? The report suggests that rate cuts typically lead to monetary easing, which can weaken the dollar and create a favorable environment for risk-on assets like Bitcoin, as investors seek higher returns and inflation hedges. Q3: What did the survey say investors would do if the market fell 10%? A significant 80% of institutional respondents stated they would either maintain their current Bitcoin holdings or purchase more if the crypto market experienced a further 10% decline, indicating strong underlying demand. Q4: How many investors were surveyed in the Coinbase report? The survey polled a total of 148 investors, comprising 75 institutional investors and 73 retail investors, between early December 2024 and early January 2025. Q5: What phase do most investors believe the market is currently in? Fifty-four percent of all survey respondents identified the current market cycle as either an “accumulation phase” or a “bear market,” suggesting a prevalent view that prices are in a period of consolidation or value-building. This post Bitcoin Undervalued: 71% of Institutional Investors Reveal Bullish Stance in Pivotal Coinbase Survey first appeared on BitcoinWorld .
26 Jan 2026, 04:55
Bitcoin Plummets as US Government Shutdown Fears Intensify Market Uncertainty
BitcoinWorld Bitcoin Plummets as US Government Shutdown Fears Intensify Market Uncertainty NEW YORK, October 2025 – Bitcoin experienced a significant price decline this week, dropping 1.25% to $87,781 as fears of an impending U.S. federal government shutdown rattled global financial markets. This downturn highlights the cryptocurrency’s growing sensitivity to traditional macroeconomic and political pressures, marking a pivotal moment for digital asset investors. Bitcoin Price Reacts to Political Turmoil The recent Bitcoin price movement directly correlates with escalating tensions in Washington D.C. According to market analysts, the digital asset’s decline stems from broader risk aversion rather than cryptocurrency-specific issues. Rick Maeda of Presto Research emphasized this connection, stating that political uncertainty now drives market sentiment more than technological developments. Market data reveals several key patterns during this period: Correlation spikes between Bitcoin and traditional risk assets Increased volatility during congressional negotiation periods Liquidity shifts from speculative assets to safe havens Bitcoin Performance During Political Crises Event Date BTC Price Change Recovery Time Debt Ceiling 2023 May 2023 -8.2% 11 days Budget Impasse 2024 September 2024 -5.7% 7 days Current Shutdown Threat October 2025 -4.3% (to date) Ongoing Understanding the Government Shutdown Mechanism The United States faces a potential government shutdown when Congress fails to pass appropriations legislation. This political deadlock triggers the furlough of non-essential federal employees and suspends various government services. Consequently, financial markets typically react negatively to this uncertainty. Historical data shows that during previous shutdowns, risk assets generally underperformed. For instance, the 2018-2019 shutdown coincided with a 15% decline in the S&P 500. Currently, prediction markets like Polymarket indicate a 75% probability of shutdown occurrence, according to Vincent Liu, chief investment officer at Kronos Research. Expert Analysis of Market Reactions Financial experts observe distinct patterns in cryptocurrency behavior during political crises. Initially, Bitcoin often moves independently from traditional markets. However, as crises intensify, correlation coefficients increase significantly. This pattern suggests that during severe political uncertainty, investors treat Bitcoin similarly to other risk assets. Market analysts identify three primary transmission channels for political risk: Liquidity effects from institutional portfolio rebalancing Sentiment shifts among retail investors Regulatory uncertainty affecting long-term positioning Cryptocurrency Market Dynamics Under Pressure The broader cryptocurrency market shows similar stress patterns to Bitcoin. Altcoins typically experience amplified volatility during political crises, with many declining 2-3 times more than Bitcoin’s percentage drop. This phenomenon occurs because investors perceive Bitcoin as a relative safe haven within the crypto ecosystem. Market structure analysis reveals important insights. Exchange data indicates increased selling pressure during Washington negotiation periods. Meanwhile, derivatives markets show rising put option volumes, suggesting investors hedge against further declines. These market mechanics demonstrate how political events now significantly influence cryptocurrency trading strategies. Historical Context and Comparative Analysis Comparing current events to historical precedents provides valuable perspective. The 2013 government shutdown occurred before Bitcoin’s mainstream adoption, limiting direct comparison. However, the 2018-2019 shutdown offers more relevant data, showing Bitcoin declining approximately 12% during the 35-day period. Several factors differentiate the current situation: Increased institutional participation in cryptocurrency markets Higher correlation with traditional financial indicators Greater regulatory scrutiny of digital assets Enhanced market surveillance and reporting requirements Global Market Implications and Spillover Effects U.S. political instability affects global cryptocurrency markets through multiple channels. International investors often reduce exposure to dollar-denominated assets during American political crises. Additionally, cryptocurrency mining operations face uncertainty regarding energy policies and regulatory frameworks. Asian and European markets show varied responses to U.S. political developments. Typically, Asian trading sessions exhibit more volatility during U.S. political crises, while European markets demonstrate greater stability. This geographical variation creates arbitrage opportunities but also increases systemic risk across global cryptocurrency exchanges. Conclusion The Bitcoin price decline amid U.S. government shutdown fears demonstrates cryptocurrency’s maturation as a financial asset class. Political uncertainty now significantly influences market movements, reflecting Bitcoin’s integration into global financial systems. As markets continue evolving, understanding these macroeconomic relationships becomes increasingly crucial for investors navigating volatile conditions. FAQs Q1: How does a US government shutdown specifically affect Bitcoin? Government shutdowns create macroeconomic uncertainty that typically reduces investor appetite for risk assets like Bitcoin. The mechanism involves portfolio rebalancing, liquidity concerns, and broader financial market contagion effects. Q2: What historical evidence shows Bitcoin’s reaction to political crises? Historical data indicates Bitcoin often declines during significant political uncertainty. During the 2018-2019 shutdown, Bitcoin dropped approximately 12%, though market structure and participation levels have evolved significantly since then. Q3: Do other cryptocurrencies react similarly to Bitcoin during political turmoil? Most cryptocurrencies show correlation with Bitcoin during crises, though altcoins typically experience greater volatility. Bitcoin often serves as a relative safe haven within the cryptocurrency ecosystem during turbulent periods. Q4: How long do Bitcoin prices typically take to recover after political crises? Recovery times vary based on crisis severity and market conditions. Historical data suggests recovery periods ranging from one to three weeks, though each situation presents unique characteristics and timelines. Q5: Should investors consider Bitcoin a safe haven during political instability? While Bitcoin sometimes demonstrates resilience, it generally behaves as a risk asset during acute political crises. Investors should consider their risk tolerance and portfolio diversification strategies rather than assuming Bitcoin will always serve as a safe haven. This post Bitcoin Plummets as US Government Shutdown Fears Intensify Market Uncertainty first appeared on BitcoinWorld .
26 Jan 2026, 04:36
Asia Market Open: Bitcoin Dips Under $88K, Gold Hits Record Above $5K As Yen Hits Two-Month Peak
Bitcoin dipped under $88,000 as Asia opened to mixed trade, with investors leaning into safety and pushing gold to a record above $5,000 an ounce. In China, stocks moved in different directions. The Shanghai index rose 0.12%, and China A50 gained 0.49%, while the SZSE Component slid 0.74% and DJ Shanghai eased 0.09%. Hong Kong’s Hang Seng edged up 0.04%. Gold extended a rally that has reshaped the commodity market. Spot gold rose 1.79% to $5,071.96 an ounce by 0159 GMT after touching $5,085.50 earlier, and US gold futures for February delivery gained 1.79% to $5,068.70. Market snapshot Bitcoin : $87,781, down 1.3% Ether : $2,867, down 2.6% XRP : $1.89, down 0.6% Total crypto market cap: $3.04 trillion, down 1.4% Greenland Tariff Threat Rolled Back As Trade Risks Linger Investors have treated the metal as a refuge through shifting policy expectations and geopolitical stress. Prices surged 64% in 2025, and they have gained more than 17% this year, supported by safe-haven demand, expectations of easier US monetary policy, central bank buying and ETF inflows. President Donald Trump’s trade threats stayed in focus. He abruptly stepped back on Wednesday from threats to impose tariffs on European allies as leverage to seize Greenland, and he said over the weekend he would impose a 100% tariff on Canada if it followed through on a trade deal with China. He has also threatened to hit French wines and champagnes with 200% tariffs in an apparent effort to pressure French President Emmanuel Macron into joining his “Board of Peace” initiative. Some observers fear the board could undermine the United Nations’ role as the main global platform for conflict resolution, though Trump has said it will work with the UN. US Futures Ease After Volatile Week Marked By Trade Risks Currency markets also turned volatile. The yen jumped to more than a two-month high on speculation that coordinated intervention by US and Japanese authorities could be imminent, and Tokyo’s top currency diplomat left that prospect open while keeping markets guessing. The yen rose as much as 1.2% to 153.89 per dollar, its strongest since November. The euro hit a four-month high of $1.1898 and was last up 0.4% at $1.18665, as traders trimmed dollar positions ahead of the Federal Reserve meeting and watched for a possible announcement by the Trump administration of a new Fed chairman. Wall Street faces another busy week after a rocky stretch. US stock index futures fell modestly on Sunday evening as markets braced for the Fed decision on Wednesday and a wave of corporate earnings, after last week’s pullback tied to geopolitical strains and trade uncertainty. The post Asia Market Open: Bitcoin Dips Under $88K, Gold Hits Record Above $5K As Yen Hits Two-Month Peak appeared first on Cryptonews .
26 Jan 2026, 04:13
Crypto crash today: Bitcoin and altcoins drop as liquidations jump 770%
The recent crypto crash continued on Monday as Bitcoin and most altcoins remained in the red amid rising geopolitical jitters. Bitcoin dropped to $87,380, while Ethereum, Dogecoin, Solana, and XRP fell by over 3% in the last 24 hours. Crypto crash continues as liquidations jumped One key reason behind the ongoing crypto market crash is that liquidations continued rising. Data compiled by CoinGlass shows that liquidations soared by 770% in the last 24 hours to $678 million. Ethereum liquidations jumped to over $218 million, while Bitcoin liquidations jumped to $195 million. Solana liquidations jumped to $63 million. The other top liquidated tokens were XRP, Zcash, and Dogecoin. Crypto liquidations | Source: CoinGlass Liquidations happen when crypto exchanges close leveraged trades when their losses jump and reach the margin level. They close these trades to protect the capital they lend to the traders. The ongoing liquidations surge coincided with the decline in the futures open interest. Data shows the open interest dropped by 2.15% on Monday to $128 million, down from the October high of over $255 billion. Open interest refers to the outstanding options contracts in the crypto industry. A higher figure is a sign of higher demand for cryptocurrencies. Geopolitical jitters are rising The crypto crash is happening amid the ongoing geopolitical jitters in the United States and other countries. First, there are signs that the United States will attack Iran this year now that Donald Trump has sent an armada of warships in the region. Such a move would lead to higher oil prices and the biggest geopolitical crisis in the Middle East. Data compiled by Polymarket shows that the odds of an attack by June have jumped to 65%. At the same time, Donald Trump has threatened Canada with huge tariffs because of its recent deal with China. The deal will see China export up to 49,000 vehicles to Canada a year and pay a 6% tariff, down sharply from 100%. This move will benefit top Chinese companies like BYD and Nio. US government shutdown odds are rising The crypto market crash is also happening because of the ongoing jitters on the US government funding. Polymarket data shows that the odds of a government shutdown jumped to over 70%. These odds rose as protests continued in the past few days after a Border Patrol Agent shot and killed an American. A government shutdown would affect the ongoing economic recovery and lead to more volatility in the market. The shutdown jitters are rising ahead of the upcoming Federal Reserve interest rate decision. Economists expect the bank to leave interest rates unchanged between 3.50% and 3.0%. Bitcoin price technicals The ongoing crypto market crash is also happening because of Bitcoin’s weak technicals. The daily timeframe chart shows that Bitcoin has remained below all moving averages and the Supertrend indicator. That is a sign that bears have remained under pressure. Bitcoin has also formed a bearish flag pattern, which happens after a major dip, which is then followed by a consolidation. BTC price chart | Source: TradingView Therefore, there is a likelihood that the BTC price will have a strong bearish breakout, which may lead to more downside among altcoins. The post Crypto crash today: Bitcoin and altcoins drop as liquidations jump 770% appeared first on Invezz
26 Jan 2026, 00:49
Trump America first policy forces allies to rethink global economy
President Donald Trump’s United States is leading a radical rethinking of the world economy as allies and investors deal with a less predictable Washington. U.S. policymakers for decades touted globalization as a road to growth, stability, and peace. To some extent, today’s world is characterized by shifting tides, with countries seeking resilience or hedging against the pressure to adapt to the threat of economic coercion posed by the world’s largest economy. Allies reduce dependence as Trump reshapes global power Trump’s unapologetic “America First” policy has included threats of tariffs , supply chain constraints, and other aggressive measures to gain concessions from his allies. His ill-fated effort to acquire Greenland and a subsequent threat of tariffs on European countries revealed the dangers of strategic reliance on Washington. Although the overnight crisis receded following a temporary solution, European leaders vowed not to be pressured, suggesting they would increase efforts to rely less on Washington. Neil Shearing, chief economist at Capital Economics in London, said the current environment demonstrates a change in global power relationships. “It’s about power, dependency, and coercion,” Shearing said.” “Now, countries are looking for ways to weaken their strategic reliance on the United States.” In the post-World War II regime, where the U.S. Navy defended sea lanes and the U.S. capital ensured stability, efficient global commerce was possible. But Trump’s recent moves are prompting countries to exchange some of that efficiency for security. Rising costs and market shifts signal a new economic era Even in a time of economic upheaval, the implications are clear. The drive to reduce dependence on U.S. supply chains is increasing the cost of critical goods. Gold prices have surged nearly 80 percent in the past year as investors scramble for refuge, and copper and other metals have soared as domestic semiconductor and pharmaceutical capacity is developed. The American economy continues to emerge as strong, thanks to technological and AI discoveries. Financial markets have been responsive to U.S. growth despite geopolitical tension. The Trump administration argues that its policies reinforce — not weaken — global alliances. Treasury Secretary Scott Bessent dismissed concerns about a dollar pullback as a “false narrative,” and the White House stressed that America First does not mean America Alone. There are, however, concerns that the implications for the U.S.’s long-term future could be serious. As European countries, Canada , and fast-growing Asian regions pour money into their own technology and defense systems, markets worldwide for capital are growing. Higher borrowing costs will have to confront the U.S., now over $30 trillion in debt and facing annual budget deficits on an urgent scale. The Congressional Budget Office forecasts that by 2035, the Government will need to borrow over $21 trillion, and even modest increases in interest rates will raise annual service costs to the hundreds of billions of dollars. The Greenland affair and other moves during Trump’s second term demonstrate a broader trend: allies and investors cannot take American leadership for granted. “President Trump is intent on jettisoning the Atlantic Alliance and the overall world order that we’ve known for 80 years,” said former U.S. deputy treasury secretary Roger Altman. “He wants to replace that with a tripolar global order among Putin and Xi Jinping.” Today, the global economy is undergoing a transition. Countries that were previously dependent on U.S.-led globalization are carving out their own financial, technical, and strategic resilience in industries that have grown increasingly resistant—or independent—of U.S. centrality. So while American markets are still robust, the global system as a whole is likely to see rising costs, even more fragmented capital flows, and greater uncertainty. What we will have in the next decade will be a new world order, a world order forged by the competition among many powers and the demise of the American monopoly upon unquestioned supremacy. Get seen where it counts. Advertise in Cryptopolitan Research and reach crypto’s sharpest investors and builders.
26 Jan 2026, 00:21
Is There a Warning Before Bitcoin Drops? This Week’s Events and Live News Are Open
Key data impacting cryptocurrencies such as Fed interest rate forecasts, meeting dates, and the DXY index are now available in the CryptoAppsy Indices tab. Don’t forget to check it out! Continue Reading: Is There a Warning Before Bitcoin Drops? This Week’s Events and Live News Are Open The post Is There a Warning Before Bitcoin Drops? This Week’s Events and Live News Are Open appeared first on COINTURK NEWS .
