Standard Chartered, headquartered in the UK, stated that Bitcoin’s long-term upward trend is being maintained, and the target of $500,000 is still valid. The increasing institutional interest in spot Bitcoin ETFs and the start of investments by state funds support the future price potential of BTC.

While sharp fluctuations continue in the cryptocurrency markets, the price of Bitcoin (BTC) tested below $94,000 on Tuesday.

By the end of the day, Bitcoin found itself back above the $94,000 level, but the overall crypto market experienced a drop of up to 4 percent.

Solana (SOL) also faced intense selling pressure alongside Bitcoin. Solana, which dropped by 35 percent in the past month, gave back all the gains it had made during the period when Trump won the election.

In the collapse of Solana, rugpull cases in the memecoin market and a fraud scandal associated with Argentine President Javier Milei were influential. The token called LIBRA, supported by Milei, rapidly gained value but collapsed when insiders sold, causing losses for investors.

INSTITUTIONAL INTEREST SUPPORTS BITCOIN

Despite the short-term decline in Bitcoin, Geoff Kendrick, the Chief Crypto Researcher at Standard Chartered, continues to maintain the long-term bullish expectation for Bitcoin. In a note he released, Kendrick emphasized that Bitcoin continues to attract increased interest from institutional investors.

The rise in institutional demand for spot Bitcoin ETFs is particularly noteworthy. The latest 13F filings in the US show a widening investor base ranging from retail investors to hedge funds, banks, and even governments. Kendrick highlighted that major financial institutions like Goldman Sachs have increased their ETF holdings, and Abu Dhabi has purchased a Bitcoin ETF for the first time.

Kendrick mentioned that with the ongoing expansion of the investor base for Bitcoin, a more stable long-term upward trend could be observed. He considered Abu Dhabi’s start of investing in Bitcoin ETFs as the beginning of more involvement by dominant states.

In previous statements, Kendrick had mentioned expecting Bitcoin to exceed $500,000 until Donald Trump left office. Factors behind this prediction include Bitcoin’s supply dynamics and the dominance of long-term investors in the market.