Institutional Sentiment Shifts as Bitcoin Enters 'Value-Accumulation Zone'

A recent Global Investor Survey conducted by Coinbase and Glassnode indicates a significant shift in market perception, with a majority of participants viewing Bitcoin (BTC) as undervalued. The survey, which included 91 global investors, shows that 82% of institutional and 70% of non-institutional investors now categorize the current market as a late bear cycle markdown phase. This represents a sharp increase from December, when only about one-third of respondents held this view. Despite the bearish phase classification, valuation sentiment remains optimistic; 75% of institutions and 61% of non-institutions believe the asset is priced below its intrinsic value, with very few participants flagging it as overpriced. Onchain data reinforces these findings. The Bitcoin Combined Market Index (BCMI)—which aggregates MVRV, NUPL, and SOPR—recently rose to 0.37 from 0.26, a level historically associated with deep undervaluation. Furthermore, realized cap UTXO age bands for short-term holders (one week to one month) have dropped to 3.91%, mirroring levels seen in October 2023 when BTC traded near $27,000. While the 90-day average of the BCMI suggests continued selling pressure, analysts suggest the market is entering a 'Value-Accumulation Zone,' implying that downside risks are becoming limited relative to long-term upside potential. Additionally, institutional expectations for Bitcoin dominance have cooled, with only 25% expecting dominance to rise, compared to 40% in previous readings.