• Contact
  • Privacy Policy
  • Advertise With Us
  • Login
  • Register
Your Trading Edge Magazine
  • Home
  • Feature
    • Market Commentary
    • Expert Advice
    • Columns
  • Trading
    • Shares and Trading
    • Technical Analysis
    • Trading Mindset
  • Crypto News
  • Finance
  • Subscribe
No Result
View All Result
  • Home
  • Feature
    • Market Commentary
    • Expert Advice
    • Columns
  • Trading
    • Shares and Trading
    • Technical Analysis
    • Trading Mindset
  • Crypto News
  • Finance
  • Subscribe
No Result
View All Result
Your Trading Edge Magazine
No Result
View All Result

Venture Capital investments in crypto set for 50% reduction in 2022

June 1, 2022
in Crypto News
Reading Time: 3 mins read
A A
0
Venture Capital investments in crypto set for 50% reduction in 2022
0
SHARES
7
VIEWS
ShareShareShareShareShare

  • The VC crypto investments peaked in December 2021 but risk being cut by half by the end of this year 2022 warns Morgan Stanley.
  • The global macroeconomic conditions show that the time of easy money is over which could impact crypto investments.

During last year’s crypto bull market of 2021, there was a record inflow of funds into the market. Venture Capital giants were pouring huge amounts of investment in several crypto projects working in blockchain-based gaming, Web 3.0, and much more.

However, Wall Street banking giant Morgan Stanley believes that the industry is set for a radical change. In its latest statement, Morgan Stanley said that venture capital investments in crypto can reduce their investment by half by the end of 2022.

As per Morgan Stanley, crypto startups raised a record $30 billion from venture capital firms last year. But the bank also states that mirroring broader market trends in venture capital, the VC investments in crypto will further dry down for the rest of the year. Morgan Stanley has been itself an investor in several blockchain startups. Furthermore, last year the banking giant also deployed a big crypto research team.

However, in a recent report, Morgan Stanley strategists led by Sheena Shah said that the time of easy money is over. In the report, the strategists added:

We think that is all going to change — the number of VC crypto investment deal peaked in December 2021, and if it matches prior performance of other sectors, could fall as much as 50% into the end of the year.

A few promising crypto startups from the DeFi and Web 3 space have continued to attract good investments. some of the top VC firms like Andreessen Horowitz (a16z) have also participated in crypto funding this year.

The gloomy picture for global macros

The global macro setup and the geopolitical tensions have put severe pressure on risk-ON assets such as equities and crypto. There’s a prediction that we could be now into a long bear market that could extend to 2023 and beyond.

The VC activity across some of the most prominent markets has also dropped by 50 percent in the last 12 months. The Morgan Stanley report further added that “worsening performance of some of the largest tech and crypto investors which are prioritizing existing holdings” could decline as “Both token and equity investments become more challenging during a crypto bear market – a similar pattern seen during 2018/19″.

However, the crypto market continues to grow in size from one bear market to another. For e.g. in 2018/2019, the size of the crypto market was just 20 percent of what it is today, despite the market correction.

The strategists at Morgan Stanley based their predictions on what is happening in the broader market. Amid the current macro scenario, the U.S. equities have entered a steep correction. Most of the growth stocks last year on Wall Street have taken a severe beating. This is “evidence that growth at all costs is no longer being rewarded,” they concluded.

Related: Billionaire investor Tim Draper believes women will drive the next Bitcoin bull run


Credit: Source link

ShareTweetSendPinShare
Previous Post

Meta Apes Taps The BNB Application SideChain To Enable Web3 Gaming Benefits

Next Post

Justin Sun’s Take on the UST-LUNA Fiasco

Related Posts

BlockFi Gets Money Services License in Iowa Weeks After Paying a $1M Penalty
Crypto News

BlockFi Gets Money Services License in Iowa Weeks After Paying a $1M Penalty

June 29, 2022
4
ChangeNOW’s Mike Ermolaev on Non-Custodial Wallets vs. CEXs in Forbes Interview
Crypto News

ChangeNOW’s Mike Ermolaev on Non-Custodial Wallets vs. CEXs in Forbes Interview

June 29, 2022
7
Snoop Dogg on crypto winter and why its good for the industry
Crypto News

Snoop Dogg on crypto winter and why its good for the industry

June 29, 2022
5
White House set to make recommendations to reduce crypto energy consumption
Crypto News

Crypto miners putting more pressure on Bitcoin price

June 29, 2022
5
Celsius Denies Reports That Company CEO Alex Mashinsky Tried to Leave the US
Crypto News

Celsius Denies Reports That Company CEO Alex Mashinsky Tried to Leave the US

June 29, 2022
4
Next Post
Justin Sun’s Take on the UST-LUNA Fiasco

Justin Sun's Take on the UST-LUNA Fiasco

Recommended

Knichel Women in Logistics 2022

Knichel Women in Logistics 2022

June 12, 2022
18
Venture Capital investments in crypto set for 50% reduction in 2022

Venture Capital investments in crypto set for 50% reduction in 2022

June 1, 2022
7
Cake DeFi paid out $317 millon to customers

Cake DeFi paid out $317 millon to customers

June 7, 2022
4
Port of Long Beach Has Second-Busiest Month on Record

Port of Long Beach Has Second-Busiest Month on Record

June 27, 2022
5
Climate Impact X Selects Nasdaq Technology to Power New Global Carbon Exchange

Climate Impact X Selects Nasdaq Technology to Power New Global Carbon Exchange

June 29, 2022
5
Your Trading Edge Magazine

This is an online news portal that aims to share the latest news about trade, finance, crypto and much more. Feel free to get in touch with us!

What’s New Here!

  • Economic Pressures Contribute to Finance Leaders Improving Last-Mile Readiness
  • BlockFi Gets Money Services License in Iowa Weeks After Paying a $1M Penalty
  • 80% of U.S. Small Businesses Are Confident They Could Withstand a U.S. Economic Recession

Subscribe Now

Loading
  • Contact
  • Privacy Policy
  • Advertise With Us

© 2021 - ytemagazine.com - All rights reserved!

No Result
View All Result
  • Home
  • Feature
    • Market Commentary
    • Expert Advice
    • Columns
  • Trading
    • Shares and Trading
    • Technical Analysis
    • Trading Mindset
  • Crypto News
  • Finance
  • Subscribe

© 2021 - ytemagazine.com - All rights reserved!

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?