Bitcoin ETF Buyers Broaden as Market Slumps; Solana Faces Heavy Losses
Bitcoin Dips Amid Weak Market Sentiment
Recent U.S. regulatory filings indicate an expanding base of institutional buyers for Bitcoin ETFs, but that hasn’t been enough to halt the ongoing market downturn. Crypto markets continued their downward trajectory on Tuesday, with Bitcoin (BTC) edging closer to multi-month lows.
As of early afternoon trading, Bitcoin was priced at $93,600, marking a 2% drop over the past 24 hours and a 10% decline over the past week. The broader market, as measured by the CoinDesk 20 Index, was down 4%, with Solana (SOL) experiencing a sharp 16% decline. The recent slump in SOL follows concerns that the memecoin frenzy—bolstered by speculative trading—may have peaked, with the latest rug pull involving Argentine President Javier Milei adding to the turmoil. Over the past month, Solana has lost 35% of its value, erasing all the gains it had accumulated after Donald Trump’s election victory.
Long-Term Bitcoin Forecast Remains Intact
Despite the near-term struggles, Standard Chartered’s Geoff Kendrick remains optimistic about Bitcoin’s long-term trajectory. He maintains his forecast that BTC could surpass $500,000 before Donald Trump exits office.
In a research note on Tuesday, Kendrick highlighted insights from the latest 13F filings, showing an evolution in Bitcoin ETF ownership from retail traders to hedge funds, and now to banks and sovereign entities. Notably, Goldman Sachs increased its ETF stake, while Abu Dhabi made its first Bitcoin ETF purchase.
“Going forward, we anticipate more long-term institutional investors entering the Bitcoin space, with Abu Dhabi’s position likely signaling the beginning of greater sovereign participation,” Kendrick stated.
Solana Ecosystem Faces Fallout from LIBRA Scandal
Solana-based tokens took a severe hit on Tuesday, with decentralized exchange tokens like Raydium (RAY) and Jupiter (JUP) recording double-digit losses, while liquid staking platform Jito (JTO) slid 7%. All three tokens are now down over 30% from their Friday peaks.
Solana’s rapid growth as a preferred platform for memecoin trading is now under pressure after the LIBRA scandal. LIBRA, a pump-and-dump token linked to Argentine President Javier Milei, initially skyrocketed to a $4 billion market cap after Milei promoted it as a tool to aid small businesses. However, the token soon collapsed, shedding nearly all of its value as insiders allegedly cashed out $100 million. Following the fallout, Milei now faces fraud allegations and potential impeachment, while Solana-based decentralized exchange Meteora’s co-founder, Ben Chow, resigned after reports linked him to the token launch.
“This is the latest sordid episode emerging from Solana’s memecoin sector,” wrote Alex Thorn, head of research at Galaxy, in a Tuesday report. He noted that sentiment towards memecoins had already started eroding following the launch of the TRUMP token earlier this year.
Upcoming SOL Unlock Event Adds More Uncertainty
As if the current sentiment weren’t low enough, an upcoming Solana token unlock event is raising concerns. While estimates vary, one hedge fund analyst predicts that approximately 15.725 million SOL—valued at around $2.5 billion—will be unlocked over the next three months, with much of the supply originating from the FTX estate.
“If an unlock of this scale occurs, it could increase the circulating supply of $SOL and potentially impact market dynamics,” analysts at Tokenomist cautioned in an X post. “Historically, large token unlocks have resulted in heightened price volatility. However, the exact size and timing of the unlock remain unconfirmed by any official source.”
With Bitcoin struggling, Solana facing mounting headwinds, and regulatory uncertainty persisting, the crypto market remains in a precarious state, awaiting its next catalyst.
