Venture capital (VC) investment in cryptocurrency firms is reportedly increasing after seven consecutive quarters of decline. According to data from PitchBook, a provider of private equity and venture capital deals information, VC investment in crypto companies rose by 41% in the first quarter of 2024, reaching a total of $2.4 billion. However, this figure is still significantly lower than the $11.1 billion invested by VCs in the first quarter of 2022. The decline in crypto VC investments continued until the first quarter of this year.
During the peak of VC investment in the crypto sector, Bitcoin (BTC) was trading below its all-time high of just over $69,000, which was reached in November 2021. This was before the collapse of Terra (LUNA) and the subsequent demise of the FTX crypto exchange. Bitcoin hit a low of around $15,500 in November 2022 but has since reached a new all-time high of approximately $73,800. As of now, Bitcoin is trading at $70,871.
PitchBook’s senior analyst, Robert Le, suggests that there is still significant potential for growth and innovation in the crypto industry, as it is still in its early stages. Unless there are major market downturns, the report expects the volume and pace of investments to continue increasing throughout the year.
Please note that the opinions expressed in this article are not investment advice. Investors should conduct their own research before making any high-risk investments in Bitcoin, cryptocurrency, or digital assets. The transfers and trades are done at the investor’s own risk, and any losses incurred are their responsibility. The Daily Hodl does not endorse the buying or selling of cryptocurrencies or digital assets, nor does it provide investment advice.