First quarter crypto deals raise $2.5bn, a ‘lacklustre’ 29% gain

The cryptocurrency industry has suffered a plunging situation for three quarters in a row, but has remarkably made a comeback. In Q1, a year ago, a record number of crypto companies raised about $2.5 billion in venture capital. This represents a massive leap of 29% in financial investment, as well as a thrilling 68% soar in the volume of deals. Galaxy Digital, however, reported the data, which undoubtedly represents the growing confidence of investors and the interest that characterizes digital currencies.

The market’s larger blow-off, which saw Bitcoin and other digital currencies experience a dramatic value spike, is responsible for the latest wave of investments. However, in contrast to the overwhelming showing of a positive trend, the assets acquired did not match the fever that existed at that time, thus implying that moderation and caution were these investors’ focus.

The Galaxy Digital report details how rising interest rates hinder venture funds’ ability to secure continuous funding. As a result, startups seeking funding are also struggling. Moreover, the slump after the 2022 market crash has contributed to the general drop in interest in crypto investments despite the current market recovery.

Fascinatingly, historical data show that venture capital movement has closely correlated with cryptocurrencies’ prices during previous uptrends in 2017 and 2021. On the other hand, investment levels have declined, even though they are currently higher than during troughs in which cryptocurrency prices have been rallying.

Despite regulatory obstacles, the United States is still the best place to invest in digital securities. Remarkably, it garnered 43% of the total funding in just the first quarter of this year. Additional regions, such as Singapore (11%), the United Kingdom (10%), Hong Kong (8%), and France (nearly 6%), have played a significant role in cryptocurrency investment as well. As a result, cryptocurrency investments are nation-specific and differ among nations globally.

The PayPal alliance and MoonPay, a Web3 infrastructure provider, have recently revealed their latest developments. This alliance typically serves as a conduit for the sale of cryptocurrencies via PayPal accounts to American citizens. By the middle of the year, this functionality will be integrated into all MoonPay partner platforms. It will advance the development of the relationship between conventional finance and cryptocurrencies.

In addition, significant advancements have transpired within the realm of law, as Russian national Alexander Vinnik, a former manager of the defunct BTC-e cryptocurrency exchange, has entered a guilty plea to charges of currency laundering. 

As per the findings of the U.S. Attorney’s Office in San Francisco, BTC-e served as a principal platform utilized by cybercriminals to manage their illicit profits, facilitating transactions valued at more than $9 billion during the period from 2011 until its closure in 2017. Due to his guilty confession, Vinnik has been sentenced to a maximum of twenty years in prison; however, the exact date of his sentencing has not yet been determined.

Bitcoin rose 1.13% today in the digital currency ecosystem, reaching $63,896.82. Additionally, Ethereum has risen in value by 1.83%, currently at $3,167.19. However, this is a strong signal that investors still show genuine interest in these top cryptocurrency assets.

Scott Cook

Scott Cook got into crypto world since 2010. He has worked as a news writer for three years in some of the foremost publications. He recently joined our team as a crypto news writer. He regularly contributes latest happenings of crypto industry. In addition to that, he is very good at technical analysis.

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