67% of Institutional Investors Expect Mega Bitcoin Rally in the Next 3–6 Months

Core Insights - A significant 67% of institutional investors expect a major Bitcoin rally in the next 3-6 months leading into 2026, despite current negative funding rates and $7 trillion in money market funds awaiting investment signals [1][2] - The macro environment is identified as the primary tail risk for both institutional (38%) and non-institutional (29%) investors in the crypto markets over the same period [2] Institutional Sentiment - Among 124 respondents, 67% of institutional investors and 62% of non-institutional investors maintain a bullish outlook for Bitcoin in the upcoming months [2] - Nearly 45% of institutions believe the market is in a late-stage bull phase, contrasting with just over 27% of non-institutional investors [4] Market Dynamics - Coinbase anticipates two more rate cuts from the Federal Reserve this quarter, which could incentivize the deployment of the $7 trillion currently in money market funds [4] - The Digital Asset Treasury companies (DATs) are expected to play a significant role in supporting a potential crypto rally, controlling approximately 3.5% of Bitcoin's circulating supply [5] Correlation and Valuation - Bitcoin's correlation with US stocks decreased from 0.55 to 0.40 in Q3, while its correlation with gold increased from -0.09 to 0.23 [6] - Bitcoin's MVRV value is currently at 0.85, indicating that the current price is 15% below the market average cost basis [6]