Bitcoin Plunges Below $94K Amid Crypto Market Slump

Bitcoin's price dipped below $94,000 on Tuesday, marking a significant decline from its recent highs. The broader cryptocurrency market, as represented by the CoinDesk 20 Index, also experienced a 4% drop over the past 24 hours. This downturn comes amidst a general slowdown in crypto price action, with bitcoin (BTC) trading at $93,600, a 2% decrease over the past day and a 10% decline over the past week.

Solana (SOL), a prominent cryptocurrency, has been particularly hard hit, with a 16% decline in its price. This drop follows a 35% decrease over the past month, effectively erasing all post-Trump election gains. The recent rugpull involving Argentine President Javier Millei may have contributed to this downturn, as the memecoin market appears to have reached its peak.

Despite the recent price slump, Standard Chartered's Geoff Kendrick maintains his bullish outlook on bitcoin. In a morning note on Tuesday, Kendrick expressed optimism about the long-term prospects of the cryptocurrency, citing the recent slate of 13F filings regarding institutional ownership of spot bitcoin ETFs. He noted that the type of buyer has evolved from retail to hedge funds and now to banks and sovereigns, with notable increases in ETF stakes by the likes of Goldman Sachs and the initial purchase of a bitcoin ETF by Abu Dhabi.

Kendrick believes that the recent developments signal a shift towards very long-term-long-only money buying bitcoin, with the Abu Dhabi position marking the beginning of greater participation by sovereigns. This trend, he argues, bodes well for bitcoin's long-term prospects and supports his previous forecast of the cryptocurrency eclipsing $500,000 by the time Donald Trump leaves office.