Most Institutional Investors Still Bullish On Bitcoin: Coinbase

Most institutional investors are bullish on Bitcoin heading into 2026 amid a strong macro backdrop and digital asset regulatory progress in the US, according to a report by Coinbase Institutional.

In a report titled, “Navigating Uncertainty,” Coinbase Institutional head of research David Duong said that “most respondents are bullish on Bitcoin.” 

Investors Remain Bullish Despite Divide Over Current Market Stage

Coinbase Institutional conducted a recent survey of institutional investors with 124 respondents. 67% of the respondents said that they are still bullish on Bitcoin for the next three to six months. 

However, the report noted that there was a “meaningful divergence” of opinion with regards to what stage of the cycle the market is in. According to the report, 45% of institutions believe the market is in the late stages of the bull run, while only 27% of non-institutions share the same view.

Digital Asset Treasury Companies Have Had A Major Impact On The Market This Year

Duong then said that digital asset treasury (DAT) firms gave the crypto market a major boost this year. 

“Looking at the supply/demand picture, it’s hard to overstate the impact that digital asset treasury companies have had on markets this year,” wrote Duong in the report. 

The report follows the record $20 billion liquidations in the crypto market on Oct. 10, which analysts have labeled as a much-needed “de-leveraging.” 

During that flash crash, the crypto market cap dropped below $4 trillion, and has not managed to recover since, data from CoinMarketCap shows. 

Crypto market cap (Source: CoinMarketCap)

Market leaders Bitcoin and Ethereum have also struggled to recover their losses from the market-wide pullback. BTC is still more than 3% in the red on the weekly time frame, while ETH is over 1% down over the past week.

Zooming out to the monthly time frame shows that BTC has slid more than 3% over the past thirty days, while Ethereum is down more than 8% over the same period. 

Strategy and BitMine, which are the largest Bitcoin treasury and largest Ethereum treasury companies, respectively, stepped in to buy the recent dip and provide the crypto market with some support. 

After purchasing 220 BTC on Oct. 13, Michael Saylor recently hinted at a fresh BTC buy by his firm with a cryptic post on X. 

The most important orange dot is always the next. pic.twitter.com/N5GQOdqr6y

— Michael Saylor (@saylor) October 19, 2025

Meanwhile, BitMine bought the latest dip by acquiring over 379K ETH worth nearly $1.5 billion since the flash crash. 

Bitcoin Still Has Room To Run

Duong said in the report that the Bitcoin price still “has room to run.” However, the analyst is more cautious now following the recent crypto market flash crash. 

“We still see resilient liquidity conditions, a strong macro backdrop, and supportive regulatory dynamics,” the analyst said in the report. 

From a macro perspective, Duong said that the “labor market appears to be cooling,” adding that “fears of a sharp contraction in the economy look overblown.” 

In addition to that, there are also two more expected Federal Reserve interest rate cuts and large money-market funds sitting on the sidelines, which Duong said could drive the markets in the fourth quarter. 

“Additional rate cuts from the Fed, as well as greater fiscal and monetary stimulus in China, could incentivize more investors to come off the sidelines,” the analyst said in the report. 

On the regulatory front, Duong said that crypto regulation “is on the right track.” The analyst highlighted the signed GENIUS Act and the CLARITY Act as signs that the regulatory landscape is moving in the right direction.

Duong also noted that infrastructure for US spot Bitcoin and Ethereum ETFs (exchange-traded funds) continues to deepen, which improves access for traditional market players and adds to market depth. These investment products, Duong argues, provide rails for the crypto market that keep usage and liquidity flowing through volatility. 

Coinbase Favors Bitcoin, Says Investors Need To Be Cautious Around Alts

Duong then went on to say that Coinbase Institutional favors crypto market leader Bitcoin for its “digital gold” narrative, especially as doubts around fiscal and monetary discipline persist. The analyst added that Coinbase is more cautious when it comes to altcoins.

Despite the cautious stance towards altcoins, Coinbase did say that Ethereum looks constructive.

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