If you think crypto is bearish, don’t pay attention April 21-27, 2022

When you look at the price of Bitcoin (BTC), it’s hard to be bullish these days. The flagship cryptocurrency has fallen below $40,000 again, with analysts predicting a much larger drop in the coming weeks. Unfortunately, many new investors forget to treat crypto as an exponential asset class and, as a result, allow themselves to be weakened by short-term price fluctuations.

Curious to know whose belief in digital assets hasn’t faltered amid the recent downtrend? Venture capitalists – ie investors whose sole purpose is to uncover the most promising startups that they believe are poised for greater things. This week’s Crypto Biz showcases staggering VC investment totals courtesy of Cointelegraph Research. We also take a look at the latest financing deals making the rounds.

Venture capital activity in Q1 2022 in crypto is expected to outperform 2021

Cointelegraph Research just released a chilling report on the state of venture capital in the blockchain and crypto industries. As it turns out, VC investments are way bigger than anyone could have predicted. In the first three months of 2022, venture funds invested a whopping $14.6 billion in crypto startups — while bitcoin and altcoins traded aimlessly. With all the macro uncertainties in today’s market — rising interest rates, generational inflation, war and recession warnings — smart money investors have poured billions into crypto. Keep that in mind the next time you decide to sell your holdings too early.

Dragonfly Capital raises $650 million in tertiary funding round

Speaking of VC, Dragonfly Capital has raised $650 million to launch a new venture fund dedicated to all things crypto. The new Dragonfly Fund III is actually much larger than the $500 million originally declared to the United States Securities and Exchange Commission in January. Despite all the bearish signals in the crypto market in terms of prices, venture capitalists are overselling funds whose sole purpose is to back blockchain startups. Still not convinced you’ve stumbled upon an investment opportunity for generations? (Of course, no financial advice!)

Former Jefferies FX brokers launch institutional crypto exchanges

From Wall Street to crypto, how many times have you heard this tale? Well, get used to it because legacy finance is about to have a serious brain drain. This week, former Jefferies forex brokers announced that they have launched an institutional crypto exchange called Crossover Markets Group Inc. If you’ve never heard of Jefferies, it’s the largest independent full-service investment firm headquartered in the United States. Brandon Mulvihill and Anthony Mazzarese launched the crypto exchange to provide liquidity to institutions looking to invest in digital assets. You can think of it as yet another driveway that makes crypto investing too attractive for institutions to do without.

Fireblocks expands institutional access to Terra’s DeFi ecosystem

Although Terra wants to make decentralized finance (DeFi) accessible to all, it is the institutions that are seeing some serious FOMO. Crypto storage platform Fireblocks announced this week that it has enabled institutional access to Terra. Less than 72 hours later, investors had deposited $250 million into the ecosystem. Their interest in Terra is no doubt tied to the ecosystem’s growing popularity, but it’s also indicative of interest in DeFi in general. According to a metric known as Total Value Locked, DeFi is currently worth more than $261 billion.

Don’t miss our hottest altcoin debate!

Baron Rothschild of the famous Rothschild banking family once said, “The time to buy is when blood is on the streets.” With most altcoins crashing along with Bitcoin, analysts at Cointelegraph sat down to select the most promising altcoins for the rest of the year to be discussed in 2022. You can watch the lively discussion — and our top altcoin picks — in the replay below. If you like what you see, join us every Tuesday for The Market Report.

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