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Data edited by Reuters Despite the plunge in crypto prices, venture capital investment has shown that it is on track to outpace last year’s investment.
However, it is not possible to draw the whole picture with raw numbers alone.
Cryptocurrencies have been declining since their peak in November 2021. The terra scandal plunged the problem and pushed down token prices altogether.
Bitcoin posted a local bottom at $ 17,600 on June 18, and after trading relatively sideways, the breakout peaked at $ 24,200 on July 20. Since then, market leaders have been declining at daily closing prices.
Analysts attributed Monday’s sales to the looming expectations of a sharp Fed rate hike. Expectations are widespread for raising 75 basis points. However, some expect an increase of 100 basis points.
Cryptographic investors respond by closing their positions, Total market capitalizationBottomed out at $ 966 billion early on July 26th (GMT).
Recent rallies have raised emotions from extreme horror to horror, but this week’s sale Fear and greed index Hover back over the extreme horror zone.
Overall, uncertainty dominates because macro factors have a significant impact on the crypto market.
VC invested $ 17.5 billion in crypto companies in the first half of 2022, according to data from capital research platform PitchBook. Estimated over 12 months, this is $ 35 billion, well above the industry-wide funding of 2021.
“This will make our investment more than the record $ 26.9 billion raised last year, making it a warmer and happier time for Bitcoin and its business partners.”
In this regard, Roderik van der Graf, founder of Hong Kong-based investment firm Lemniscap, said the available capital was “large” and that the cryptocurrency winter did not put off investors. I added.
“Current market conditions-I don’t think they mislead investors.”
David NageArca’s VC Portfolio Manager reiterated Van der Graf’s comment, but took a more subtle view that it took time for the deal to close and the company’s reputation declined during the recession.
Nage added that at this time, some VCs are investing in investor-friendly conditions. At the same time, some are refraining from better trading than expected after September. This could spur investment enthusiasm in the second half of this year.
“There is this kind of viral dialogue, and around September, the rating drops even further and it just goes crazy.”
