Recent regulatory filings in the U.S. indicate a growing diversification among buyers of Bitcoin exchange-traded funds (ETFs). However, this broadening investor base has done little to lift Bitcoin’s (BTC) price, which continued its downward trend on Tuesday, nearing its lowest level in months.

During early afternoon trading, Bitcoin was priced at $93,600, reflecting a 2% decline over the past 24 hours and a 10% drop over the last week. The broader cryptocurrency market, as measured by the CoinDesk 20 Index, also saw a 4% decrease in the same period.

One of the biggest drags on the index was Solana (SOL), which tumbled 16% amid mounting concerns over the state of the memecoin market. The latest controversy involving a rug-pull tied to Argentine President Javier Milei has further exacerbated the losses. Over the past month, Solana has plummeted 35%, effectively erasing all gains made following Donald Trump’s election victory.

Bitcoin’s Long-Term Outlook: $500K Still in Sight

Despite Bitcoin’s sluggish short-term performance, Standard Chartered analyst Geoff Kendrick remains optimistic about its long-term potential. Kendrick has previously projected that Bitcoin could surpass $500,000 by the time Donald Trump exits office.

In a Tuesday market note, Kendrick expressed renewed confidence in his forecast, citing the latest 13F filings, which revealed increasing institutional participation in Bitcoin ETFs. The investor base has evolved beyond retail traders and hedge funds to now include major banks and sovereign entities.

Kendrick highlighted Goldman Sachs’ increased ETF holdings and Abu Dhabi’s initial investment in a Bitcoin ETF as key signs of this shift.

“Going forward, we expect more long-term, buy-and-hold investors to enter the market, and Abu Dhabi’s involvement may be just the beginning of larger sovereign participation,” Kendrick stated.

Solana Under Pressure Amid Memecoin Market Fallout

The downturn in Solana’s price has not only affected SOL but has also extended to tokens within its ecosystem. Decentralized exchange tokens such as Raydium (RAY) and Jupiter (JUP) posted double-digit losses, while liquid staking service Jito (JTO) fell 7%. All three tokens are down more than 30% from their Friday highs.

Solana, which has seen a surge in adoption as a primary platform for memecoin trading, is now grappling with the fallout from the LIBRA token scandal. LIBRA, launched on Friday, initially surged to a $4 billion market capitalization after an endorsement from President Milei on X, where he claimed the project would support small and mid-sized businesses in Argentina. However, the token subsequently crashed as insiders liquidated $100 million worth of holdings, prompting Milei to retract his support.

Milei now faces fraud charges and potential impeachment proceedings, while Solana-based decentralized exchange Meteora’s co-founder, Ben Chow, resigned following his alleged involvement in the token’s launch.

“This is yet another controversial episode stemming from Solana’s memecoin sector,” noted Alex Thorn, head of firmwide research at Galaxy. He pointed out that sentiment around memecoins has deteriorated since the high-profile TRUMP token launch.

Upcoming SOL Unlock Adds More Uncertainty

With market sentiment already at a low, an upcoming SOL unlock event is adding another layer of uncertainty. Estimates vary, but one hedge fund analyst predicts that around 15.725 million SOL—worth approximately $2.5 billion at current prices—will be released into circulation over the next three months, much of it originating from the FTX estate holdings.

“If an unlock of this magnitude takes place, it could significantly increase the circulating supply of SOL and impact market dynamics,” analysts at Tokenomist warned in an X post. “Historically, large token unlocks have triggered heightened price volatility. However, the exact size and timing of the unlock remain undisclosed by any official entity.”

As the cryptocurrency market grapples with these short-term challenges, long-term institutional adoption continues to offer a beacon of optimism, particularly for Bitcoin’s future trajectory.