TLDR:
AI and Crypto sectors have seen increased funding in Q1 of 2024, while global VC funding has plummeted. Despite the overall decline in VC funding, the crypto and AI markets have performed well, with impressive fundings. The crypto market has received substantial investments, and analysts are optimistic about its growth. Various factors, such as international events and increased access to investors, have contributed to the growth of the crypto industry. However, experts suggest that loosening government policies will further boost crypto funding.
Article Summary:
In the first quarter of 2024, AI and Crypto sectors have kept the market afloat with their positive performances amidst a decline in global VC funding. The global IT spending is expected to reach $5 trillion by the end of 2024, reflecting an 8% increase from the previous quarter. Despite the positive outlook for the global economy, the global VC funding has decreased by 30% in Q1 of 2024.
While the tech market has witnessed mass layoffs and overall slump in VC funding, the crypto and AI markets have received significant fundings. The crypto market valuation is nearly $51.5 billion, representing a small fraction of the tech industry’s overall valuation. Despite being a volatile asset, the crypto market has been experiencing vibrant funding streaks, especially in March and April 2024.
The recent Bitcoin Halving, along with the approval of the first crypto ETFs in Asia and potential Fed rate policies, are impacting the crypto market positively. Various micro-level factors, such as international events, access to investors, and crowdfunding mechanisms, have also contributed to the growth of the crypto industry.
Experts suggest that loosening government policies will further boost crypto funding in the future. The crypto market appears as an anomaly in the tech market scenario from a macroeconomic perspective, but individual micro-level events are driving growth and positivity within the global crypto market.
