UK-based Standard Chartered has stated that Bitcoin continues to maintain its long-term upward trend, with the $500,000 target still being valid. The increasing institutional interest in spot Bitcoin ETFs and the initiation of investment by state funds support the future price potential of BTC.

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

By the end of the day, Bitcoin managed to reclaim its position above the $94,000 level, yet the overall crypto market saw a drop of up to 4%.

Alongside Bitcoin, Solana (SOL) also faced strong selling pressure. With a 35% decline in the past month, Solana retraced all the gains it made during the period when Trump won the election.

Factors contributing to the collapse of Solana included rugpull cases in the memecoin market and a fraud scandal associated with Argentine President Javier Milei. The token called LIBRA, supported by Milei, rapidly appreciated in value but collapsed after insiders sold, leaving investors at a loss.

INSTITUTIONAL INTEREST SUPPORTS BITCOIN

Despite the short-term retreat in Bitcoin, Geoff Kendrick, the Chief of Crypto Research at Standard Chartered, continues to maintain his long-term bullish expectations for Bitcoin. In a recent note, Kendrick emphasized that Bitcoin continued to attract growing interest from institutional investors.

The rise in institutional demand for spot Bitcoin ETFs is particularly noteworthy. Recent 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 increased their ETF shares and that Abu Dhabi purchased a Bitcoin ETF for the first time.

Kendrick stated that with the continued expansion of the investor base for Bitcoin, a more stable upward trend could be observed in the long term. He viewed Abu Dhabi’s initiation of investment in Bitcoin ETFs as the beginning of greater participation by sovereign states.

In previous statements, Kendrick mentioned his expectation for Bitcoin to surpass $500,000 before Donald Trump leaves office. This prediction is supported by factors such as Bitcoin’s supply dynamics and the dominance of long-term investors in the market.