TLDR:
- Venture capitalists invested $2.49 billion into cryptocurrencies during Q1 of 2024, a 29% increase quarter-over-quarter.
- Bitcoin’s massive rise in 2024 caused a decoupling between venture capitalist investments and the price of Bitcoin.
Summary:
New data from crypto insights firm Galaxy Research shows that venture capitalists poured nearly $2.5 billion into the digital assets industry during the first quarter of 2024. This marked a 29% increase in investments from the previous quarter, signaling potential recovery from the market bottom in Q4 of 2023. While venture capitalist investments have historically correlated with the price of Bitcoin, in 2024, the two have decoupled due to BTC’s significant rise. This divergence is attributed to various industry-specific catalysts and macroeconomic factors.
Galaxy Research’s report indicates that Bitcoin’s price is currently at $62,754 with a 5.2% increase in the last 24 hours. Despite the positive market sentiment, investors are advised to conduct their own due diligence before engaging in high-risk investments in the crypto space. The Daily Hodl does not provide investment advice and encourages readers to stay informed about market developments through their platform.
