Bitcoin is ‘undervalued,’ Ethereum shows ‘hope’ in Q2 – Report

According to Coinbase’s Q2 2026 crypto report, produced in partnership with Glassnode, the cryptocurrency market is expected to form a bottom soon.

Notably, in Q1 2026, the global cryptocurrency market capitalization fell by 18%. At the same time, the stablecoin market grew from $308 billion to $318 billion.

That said, roughly 70% of non-institutions and 82% of institutions have categorized the crypto market as being in –

Though this might look concerning on the surface, it’s quite a jump from 1% and 36% in December 2025, respectively.

Price recap: Bitcoin and Ethereum

Upon examining the sentiment surrounding the price front, most investors consider Bitcoin [BTC] to be “undervalued,” given the current price levels.

Simply put, as per institutions, the current price action does not fully reflect the future demand of the asset. 

This coincided with Bitcoin trading at $77,057.04 at press time, up by more than 13% over the previous 30 days. Whereas, Spot Bitcoin ETF recorded inflows worth $2.135 billion alone in the month of April. 

On the other hand, as of the beginning of Q2 2026, the sentiment surrounding Ethereum [ETH] has changed to “hope”.

This implies that the market may have been cleared of some players who were only engaged in speculation. This comes on the heels of  ETH’s price trading at $2,324.01 at press time, up by 12% over the previous month. 

In light of all of this, the report asserted that the outlook for the cryptocurrency markets in Q2 2026 is “neutral.”

What to expect next? 

Looping in, it’s certain that Middle East geopolitical tensions were the primary event that affected the crypto market’s performance in Q1 2026. 

However, other “idiosyncratic factors,” like regulatory developments, particularly those related to the CLARITY Act, and the emergence of agentic AI, have also had a significant impact on the crypto market. 

Interestingly, Goldman Sachs had also predicted some time ago that the cryptocurrency market might have reached its bottom.

Put simply, this indicates that a recovery is likely to occur in the latter quarters of 2026. However, as long as the Crypto Fear and Greed Index remains in the “fear” zone, skepticism will continue to stir.

Final Summary

• The crypto market endured volatility in Q1 2026, losing 18% in capitalization even as stablecoins expanded.
• Despite ongoing geopolitical and regulatory pressures, institutional sentiment suggests the market may be nearing its bottom.