Crypto market experiences significant response in investment
Cryptocurrency startups have seen a significant response in fundraising in the first quarter of this year (January-March) compared to the previous year. At this time, investment commitments from venture capital reached 2.4 billion dollars. With this, the sector has received this amount of investment for the second consecutive quarter. News Reuters.
Data analytics firm Pitchbook said two factors have been driving the increase in investment. One is that expectations of a US interest rate cut rose at the time, while the debut of the US Bitcoin Spot ETF instilled renewed confidence among investors.
According to the agency, there were more than 518 contracts in the crypto market during this period, which is 40.3 percent more than the previous quarter (October-December). At the same time, however, global venture capital investment fell to a nearly five-year low.
Investments in the crypto sector hit a peak in the first quarter of 2022. At that time, after investing 1 billion dollars in digital asset startups, funding started to decrease.
