TL;DR:
- Investor sentiment has shifted from fear to hope, with 75% of institutions considering Bitcoin to be undervalued.
- The stablecoin supply increased to $318 billion, suggesting capital is waiting to re-enter the market.
- On-chain data shows strong accumulation, with a 37% drop in the supply of Bitcoin moved recently.
Everything seems to indicate that the digital asset ecosystem is ending its correction phase, as the first crypto market bottom signals are already being observed during the second quarter of 2026. According to research from Coinbase Institutional and Glassnode, improved sentiment and solid on-chain signals support a possible short-term stabilization.
During the first quarter of 2026, total market capitalization (excluding stablecoins) fell by 18%, but the stablecoin supply grew from $308 billion to $318 billion. This increase seems to indicate that capital has not left the sector, but rather remains in stable assets waiting for confirmation to be reinvested.
Data also reveals that at least 75% of institutional investors perceive Bitcoin as an undervalued asset. This shift in perception reinforces the theory that downside risks are increasingly limited, allowing for a more constructive market structure.
Long-term holder accumulation and macroeconomic risks
Blockchain indicators reflect growing conviction among investors, with the Bitcoin supply held for more than a year increasing by 1%. Conversely, speculative activity decreased drastically, with a 37% drop in the movement of short-term coins.
Nonetheless, Bitcoin’s correlation with the S&P 500 climbed to 0.58, indicating high sensitivity to traditional risk markets. Geopolitical uncertainty in the Middle East and potential oil supply disruptions continue to condition global investor appetite.
The market is also closely watching the progress of the CLARITY Act and advancements in post-quantum cryptography as key factors for the future. If macroeconomic conditions normalize, the crypto market could experience a sustained recovery driven by utility and institutional demand.
