Perceptions that bitcoin is in an undervalued zone are spreading among institutional and retail investors.

On April 29, Cointelegraph reported that a global investor survey conducted by Coinbase and Glassnode found more than 70% of respondents rated bitcoin as an undervalued asset.

The survey covered 91 investors worldwide from March 16 to April 7. Respondents included 29 institutional investors and 62 non-institutional investors.

The results showed that 82% of institutional investors and 70% of non-institutional investors viewed the current bitcoin market as a late bear market or the final stage of a price decline. In December last year, only about one-third of both groups shared that view.

The undervaluation assessment continued. Some 75% of institutional investors and 61% of non-institutional investors said bitcoin was undervalued. By contrast, only a small number said it was overvalued. Perceptions of the market phase are changing quickly, but the prevailing view is that prices still have room to rise.

Expectations for bitcoin dominance also shifted. The share of institutions expecting dominance to rise further fell to 25% from 40%. Some 54% said it would hold around the current level of about 58.1%, while 21% expected a decline. The data confirmed a trend in which market participants are placing more weight on stability at current levels than on continued bitcoin strength.

On-chain indicators showed a similar signal. Crypto analyst Mingyu Woo (우민규)'s bitcoin composite market index rose to 0.37 from 0.26 recently. The index is calculated by combining MVRV, NUPL, SOPR and investor sentiment, and the latest reading was assessed as historically linked to a "deep undervaluation phase". An interpretation also emerged that bitcoin is entering a "value accumulation phase".

By indicator, MVRV gauges price levels by comparing market capitalisation with realised value. NUPL shows holders' unrealised profit and loss, and SOPR measures whether coins were sold at a profit or at a loss. Taken together, these indicators make it possible to assess bitcoin's price level and investor behaviour at the same time.

Still, the 90-day average of the bitcoin composite market index continued to fall, suggesting selling pressure persists. The share of the realised market cap for holders with UTXO ages of 1 week to 1 month also fell to 3.91%. That is the same level as October 2023, when bitcoin traded around $27,000.

Because the indicator shows the share of coins that moved recently, it is used as a measure of short-term liquidity and speculative price tendencies. Analyst Crypto Dan said in March that the sharp drop in the indicator meant the bitcoin market had moved closer to an undervalued zone, but the ultimate bottom had not yet been confirmed. Since 2021, bitcoin has often formed a cycle low within 3 to 6 months after similar readings appeared.

As a result, both investor sentiment and on-chain indicators point to the possibility of undervaluation in the current bitcoin market, but it is difficult to see it as a stage where short-term selling pressure has been fully cleared. With both institutional and non-institutional investors seeing the market as near the tail end of a bearish phase, flows from short-term holders and shifts in bitcoin dominance remain key variables that will determine the next direction.