Investors express their confidence in crypto startups

Investors are confident that a lot can happen for the crypto market, especially with crypto startups doing rounds with their upcoming funding sessions. It is based on whether Bitcoin can still rise or has become dust. Bitcoin is reflective of the crypto market here. Also bringing the argument is a series of scandals that have painted a gloomy picture of the entire crypto industry.

Sam Bankman-Friend, also known as SBF, of FTX, has been charged with 25 years imprisonment for orchestrating a fraud of $8 billion. Next, Changpeng Zhao from Binance faced federal charges and pleaded guilty. Tera and Lune added salt to that injury by wiping approximately $40 billion from the market after their crash.

A section of users were not optimistic about the future of crypto; neither were investors. However, the sentiments have changed since the US Securities & Exchange Commission approved 11 Spot Bitcoin ETF applications. Since then, Bitcoin ETFs have contributed a lot to the market through constant inflow – even as Grayscale heavily posed selling pressure across the ecosystem.

Now, the confidence of crypto startups is evident from the fact that the likes of Paradigm are in talks to raise new funds in the range of $750 million to $850 million. The VC Firm has yet to confirm the actual amount, but the mere mention instills a sense of hope. Andreessen Horowitz was unhindered by any of the facts. In February, they reportedly invested $100 million in EigenLayer and later participated in a $28 million Series B Funding Round of Espresso Labs.

Simply put, the investment in crypto companies has surged by 66% compared to the average monthly investment in the last year. The current year, 2024, could be a little different as some of the investors look to divert their funds to finance campaigns ahead of 2024 elections.

BTC is up by 0.52%, listed at $66,277.29 when writing this article. It had achieved an ATH of ~$73,000 but has now retraced to a lower value. Analysts have defined this phase as a correction ahead of Halving – which is expected to majorly soften the decline and slightly uptick the value.

BTC is estimated to end the year at $100,000. Alternatively, there is a possibility that the token may surpass $150,000 before entering the following year.

On the other hand, Ether is swinging between the possibility of its ETF getting approved by the Commission by the end of this year. ETH ETF was previously expected to see the end of the tunnel by the middle of 2024. That timeline has been revised since there is no cemented confirmation about it.

Investors are bankrolling crypto startups despite a series of downfalls. Bitcoin has recently slipped but predicted estimates place it on a comfortable cushion.

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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