Correlation between Bitcoin price and VC investment breaks down: Report
Bitcoin's bull market in 2024 did not lead to a significant increase in venture capital funding for crypto and blockchain startups, indicating a shift in institutional investor strategies. Despite Bitcoin's over 100% gain in 2023, venture capital investment lagged, with 2,153 blockchain funding rounds totaling $11.5 billion, lower than previous years. Decentralized finance (DeFi) and blockchain infrastructure saw notable growth, with funding increases of 85% and 57%, respectively. Analysts predict a rebound in crypto venture deals in 2025, estimating $18 billion in new capital, though this remains below 2022 levels. Renewed interest in crypto is part of a broader trend signaling the end of the "fintech winter," with stablecoins in cross-border payments highlighted as a key area for investor focus.
