JPMorgan Bank: Interest of Venture Investors in Blockchain Industry is Weaking
According to JPMorgan, the declining interest of venture investors in the blockchain industry could prolong the downward trend in the cryptocurrency market.
JPMorgan bank predicts that this trend may continue as the decline in investment in blockchain services has been observed since 2022, also known as the “crypto winter.”
However, the bank notes that there was a slight improvement in the industry in 2024 due to the rise of Bitcoin, although overall capital inflows are still significantly lower compared to 2021.
In the first quarter of 2024, only $3.2 billion was invested by venture investors, whereas in the same period in 2022, the amount exceeded $4 billion, according to data from Block Research cited by JPMorgan.
Some notable investors in the crypto sector during this time include Galaxy Digital, Hack VC, and Hivemind Capital. In contrast, hedge funds focused on the digital asset market experienced significant growth in 2024, with approximately $20 billion under their management as of January.
