TLDR:
– Retail investors are gradually getting back into the crypto market after the 2022 crash and are proceeding cautiously.
– Venture capital funding for crypto and blockchain startups has risen for the first time in 1.5 years.
Retail investors are slowly re-entering the crypto market as Bitcoin prices increased by nearly 70% in Q4 of 2023. However, the cautious approach taken by retail investors is evident due to the lessons learned from the 2022 market crash. Venture capital funding for crypto and blockchain startups has increased by 2.5% in Q4 of 2023 after consistently declining for six quarters.
Key points:
– Bitcoin prices climbed nearly 70% in the fourth quarter of 2023, prompting small retail investors to re-enter the market cautiously. Retail trading volume on exchanges like Coinbase has increased significantly.
– Venture capital funding for crypto and blockchain startups recorded a 2.5% increase in Q4 of 2023 after declining for six quarters.
Despite the positive signs, retail investors are not diving headfirst into the market, as Google searches for ‘Bitcoin’ have decreased back to bear-market levels. The series of exchange bankruptcies and regulatory challenges within the crypto industry have made investors proceed with caution in re-entering the market.
