The cryptocurrency market has always been a space defined by volatility, and early 2026 is no exception. According to a recent survey by Coinbase Institutional and Glassnode, around 26% of institutional investors, alongside 21% of non-institutional participants, now believe we are in a bear market. But what does this mean for investors, and how should they navigate these uncertain waters?
New Survey Highlights Bearish Sentiment
From December 2025 to January 2026, a survey of 148 respondents—75 institutional and 73 non-institutional investors—was conducted. In it, a sharp rise in bearish sentiment was reported compared to previous months. While less than 10% of respondents previously identified market conditions as bearish, this number has climbed to over 25% today. Coupled with metrics like the Bull-Bear Market Cycle Indicator, which has stayed below zero since October, it’s clear that many believe the market is entering or sitting firmly in bearish conditions.
Long-Term Investors Stay Optimistic
Interestingly, while short-term sentiment points to a bear market, actual investor actions tell a different story. A majority of both institutions (62%) and retail investors (70%) have either maintained or grown their crypto allocations in recent months. Additionally, nearly half of these investors are unbothered by short-term price drops exceeding 10%, suggesting a significant level of long-term conviction in cryptocurrency’s potential.
For example, 31% of institutional investors and 37% of non-institutional investors said they would actively buy the dip during price slumps. This trend reflects growing confidence that assets like Bitcoin (BTC) and Ethereum (ETH) remain undervalued, as per data also revealed in the report.
Valuation Metrics Indicate Opportunities
Supporting this optimism, recent data from Santiment shows that the 30-day Market Value to Realized Value (MVRV) ratios for cryptocurrencies like Bitcoin, Ethereum, and Cardano (ADA) are trending negative. This historically indicates lower risk for new entries, with experts suggesting such moments often represent prime buying opportunities for investors.
For example, CoinDesk experts recommend keeping an eye on established assets like XRP. Many investors see these cryptocurrencies as potentially undervalued based on technical indicators, creating an environment ripe for strategic accumulation.
Analysts Maintain a Constructive Outlook
Despite fluctuating macroeconomic signals, researchers like David Duong, Global Head of Research at Coinbase, maintain that 2026 holds promise for cryptocurrencies. Duong points out that while market turbulence and geopolitical concerns remain factors, 2025’s deleveraging has allowed the market to re-stabilize somewhat, ushering in cautious optimism as the year begins.
What could improve conditions further? Experts agree that progress on the U.S. CLARITY Act could provide a major regulatory boost, encouraging broader institutional participation and fostering market stability.
Investor Tips for Navigating the Current Market
So, what should investors do amidst this environment? Here are three key strategies:
- Diversify your holdings: While assets like Bitcoin and Ethereum are favored, diversification across altcoins like Chainlink and Solana can spread risk.
- Focus on long-term strategies: Avoid panic-selling during short-term fluctuations; instead, evaluate the fundamental value of assets before acting.
- Leverage resources: Utilizing tools such as Glassnode’s market indicators can provide key insights into broader trends.
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The Bottom Line
While the current market sentiment leans bearish, the underlying data suggests many investors view this as an opportunity rather than a setback. By focusing on solid strategies, leveraging market data, and maintaining a long-term perspective, investors can navigate these uncertain times with confidence.
