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

Core Insights - A recent survey indicates that approximately 25% of both institutional and non-institutional investors perceive the crypto market as being in a bear phase, despite a belief that Bitcoin is undervalued [1][2] Group 1: Market Sentiment - The survey conducted from December 10, 2025, to January 12, 2026, included 148 respondents, with 75 being institutional and 73 non-institutional investors [2] - 26% of institutional respondents and 21% of non-institutional respondents believe the crypto market is currently in a bear market, a significant increase from only 2% and 7% in the previous survey [3] Group 2: Investor Behavior - Despite bearish sentiment, 62% of institutions and 70% of non-institutional investors have either maintained or increased their crypto allocations since October 2025 [5] - 49% of institutional and 48% of non-institutional respondents indicated that a short-term price drop of over 10% would not lead to changes in their current allocations [5] - 31% of institutional and 37% of non-institutional investors expressed intentions to buy the dip under such conditions [6] Group 3: Valuation Perspectives - 70% of institutional and 60% of non-institutional investors believe that Bitcoin is undervalued, highlighting a disconnect between short-term market sentiment and long-term investment conviction [6]