Capital Invested & Bitcoin Price! A Shifting Correlation 📈

The long standing correlation between $BTC price and capital invested in crypto startups has faced notable disruption over the past year.

While Bitcoin has seen a strong upward trend since January 2023, venture capital activity in the crypto space has not kept pace. This divergence can be attributed to weaker allocator interest in both crypto and broader venture markets, as well as a shift in narratives that now heavily favor Bitcoin, sidelining many of the themes that dominated the 2021 cycle.

Although Q1 2025 showed signs of a rebound, it’s important to note that over 40% of the capital invested during the quarter was concentrated in a single, strategic investment involving binance rather than a broad resurgence in venture funding.

This signals a market dynamic where capital is increasingly selective, favoring established players over broad-based startup support! 🫶