According to Odaily, cryptocurrency venture capital transactions in May 2025 fell to their lowest level of the year, with only 62 funding rounds completed. This marks the lowest point since January 2021. Despite the decrease in the number of rounds, the total funding amount reached $909 million, making it the second-largest month for funding this year, following March's 78 rounds totaling $2.89 billion.
Market analysts attribute the cooling investment climate to three main factors. Firstly, the volatility in cryptocurrency market prices has been significant, with Bitcoin experiencing fluctuations since peaking in January. The uncertainty surrounding tariff policies further intensified these fluctuations in late May. Secondly, the macroeconomic environment has been challenging, as the Federal Reserve's high-interest rate policy has put pressure on risk assets across the board. Lastly, seasonal industry factors have played a role, as summer is traditionally a slow period for investments.
