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A 16z crypto fund launch: a change of guard from retail to sophisticated crypto investing

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In a volatile market like crypto, the old Wall Street adage that says, “Bulls make money, bears make money, but pigs get slaughtered” still makes total sense. Basically, it means you pretty much lose every time you remain undecided on whether you want to be a market bull or a bear. Just like there is no middle ground while investing in stocks and securities, the cryptocurrency market is unforgiving to those who become too greedy to decide where they stand. Simply put, you are either in it for the long run or the short run.

This cannot be pointed out more clearly than the crypto boom that happened late last year and early 2018 when Bitcoin traded at a price as high as $20,000 per coin. Say what you may, but both bullish and bear investors made money at the time. However, a good number of retail investors who had just caught the hype hoped the market would go much higher and therefore they paid a heavy price for their greed or lack of sufficient market knowledge.

The market has been crashing

Since the beginning of the year, the crypto market has been on a steady decline losing over 50 percent of its December 2017 peak value in the first quarter of 2018. As a result, traders, investors, and market speculators have been concerned with trying to figure out when and if the bull market will recover.

According to Bill Barhydt, the CEO crypto trading platform by name of Abra, the biggest contributor to the market decline is the fact that the euphoria that brought about the bullish rally at the start of 2018 has “come down to earth” as a result of a market mostly driven by retail investors.

However, while retail investors exit the market due to a long-lasting bear trend and a series of violently volatile market movements, institutional investors are starting to pay attention and even investing in crypto.

The launch of an ‘all-weather’ crypto venture fund

Cue a 16z crypto fund (a $300 million venture fund that recently announced the launch of its venture capital firm that will focus on crypto projects). In fact, a16z crypto fund is coming into a market that is not only on a bear trend but stands a chance of declining much further.

According to Spencer Bogart, a partner at Blockchain capital, the crypto market’s liquid providers are looking to sell due to the decline by over 50 percent since January. As a result, Bogart believes that prices could go “artificially lower”.

However, as the overall market struggled to find footing in the first quilter of 2018, institutional investors like a16z crypto fund are doubling down with a dedication to crypto companies. In fact, according to Chris Dixon, a general partner at a16zcrypto, “We’ve experienced ups and downs in the cryptocurrency market, and expect there will be many more,” however he continued to mention that “There’s potential in the technology, and some of the downturns can be the best investments.”

A16zcrypto is an “all-weather” fund that boasts of over 5 years of long-term investment in crypto’s early stage coins, later stage networks and tokens. The company is set to be a consistent and aggressive investor over time no matter the market conditions. Dixon further told CNBC that “there are wild fluctuations in the price, and we see that as an opportunity”

Leading the firm will be Katie Haun (a former U.S Department of Justice Prosecutor) who has experience helping crypto startups navigate the rough and tough tides of regulation in the US. Apart from being a board of director at Coinbase, she also worked on Silk Road’s high profile crypto related cases in 2015.

In closing

The crypto market is still at its nascent years. As a result, institutional investment firms like a16zcrypto are not only changing the trend from a market dominated by retail investors but also providing sustainable support that will eventually enable crypto to solve future and present problems in the world.

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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.

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Bitcoin

Bitcoin Price Dumps Below $41,000 Amid Uncertainty

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Bitcoin price dumped hard on Monday, briefly slipping below $41,000, erasing gains recorded in the previous week. The premier cryptocurrency seems to have exhausted its recent rally propelled by industry vulnerabilities. At the time of writing, the world’s largest cryptocurrency was trading slightly lower at $41,385. Bitcoin’s total market cap has dipped by 2% over the past day, while the total volume of BTC tokens traded over the same period climbed by 58%.

Fundamentals

Bitcoin price has been facing retracements and a rollercoaster over the past few days after recently rocketing to a 20-month peak. On-chain data has suggested that many investors used the opportunity to take some profits, leading to a decline in the asset’s price.

Bitcoin’s price slump is mirrored in the wider crypto market, with the global crypto market cap decreasing by 1.85% over the past 24 hours to $1.55 trillion. The total crypto market volume has increased by 32% over the same period. The Crypto Fear and Greed Index has plunged from a level of extreme greed to a greed level of 70, suggesting a decline in risk appetite.

Ethereum, the largest altcoin by market capitalization, is currently trading at $2,167, down almost 3% for the day. Meme coins have been hit hard by the market slump, with Dogecoin and Shiba Inu down by more than 4% over the last day.

Last week on Thursday, cryptocurrency experts took notice of…

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Bitcoin Price is in Consolidation Mode Despite Market Optimism Post-Fed Decision

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Bitcoin price edged lower on Thursday despite optimism in wider markets on the back of the Fed’s interest rate decision. The flagship cryptocurrency has been consolidating above the critical level of $42,000 after briefly topping $44,000, its highest level in 20 months. Bitcoin was trading 0.71% lower at $42,569 at press time. BTC’s total market cap has increased by more than 3% over the last day to $832 billion, while the total volume of the asset traded over the same period jumped by 22%.

Economic Outlook

Bitcoin price has been trading sideways over the past few days, suggesting a pause in its recent rally towards $45,000. The premier cryptocurrency has decreased by 4% in the past week but remains 15.22% higher in the month to date. The digital asset has staged a significant recovery this year after a torrid 2022 in which a string of scandals, including the collapse of FTX, led to a market meltdown, undermining the credibility of the sector.

The crypto market has been buoyed by the Fed’s latest interest rate decision. The US Federal Reserve on Wednesday held its key interest rate unchanged for the third consecutive time, in line with market expectations. With the easing of the inflation rate, members of the Federal Open Market Committee (FOMC) voted to keep the benchmark overnight borrowing rate in a targeted range between 5.25%-5.5%.

Additionally, the central bank indicated that three rate…

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Bitcoin Price Blasts $44K in Spectacular Surge as Spot Bitcoin ETF Approval Looms Large

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Bitcoin price has been hovering above the $43,000 psychological level over the past two days amid anticipation about the potential approval of a spot bitcoin ETF. The flagship cryptocurrency has climbed more than 16% in the past week and nearly 170% in the year to date. Bitcoin’s total market cap has increased by nearly 5% over the past 24 hours to $858.9 billion, while the total volume of the token traded rose by 43%. The Bitcoin price was trading at $43,914 at press time.

Fundamentals

Bitcoin price has posted significant gains over the past few days, climbing to its highest level since April 2022, before the crash of a stablecoin that started a litany of company failures, pummeling crypto prices. The world’s largest cryptocurrency briefly topped the crucial level of $44,000 on Wednesday amid rising momentum despite being massively overbought.

According to analysts, with no spot bitcoin ETF approvals yet and the halving event five to six months away, the market is riding on FOMO. Capital has been flowing in the Bitcoin market amid enthusiasm that the launches of spot ETF will bring in billions of dollars of new investment into the crypto sector.

Investors have already started providing capital as seed money for ETF products. Notably, a recent report by CoinDesk showed that the world’s largest fund manager, BlackRock, received $100,000 in capital from a seed investor for its spot bitcoin exchange-traded fund…

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