cryptocurrency sector

Bloomberg: Trump's tariff policy is definitely not beneficial for the cryptocurrency market, and the U.S. system lacks effective oversight of the president

ChainCatcher news, Bloomberg has questioned a series of actions taken by Trump in the cryptocurrency space since he took office, stating that President Trump and his entourage seem eager to establish their crypto empire. The family not only hopes to pave the way for the U.S. to support cryptocurrencies through more favorable regulations but also aims to secure a place in the positive outcomes.Based on the current (volatile) spot prices, the TRUMP holdings of entities related to Trump have an estimated book value of about $14.9 billion, with risks that are equally incredible. As token buyers and industry insiders see their opportunity to please Trump, the likelihood of quid pro quo and corruption will certainly increase. Additionally, moral hazard is also present.When Eric Trump tweeted a friendly suggestion that Ethereum is worth buying, he was by no means a neutral observer—when he removed the phrase "you can thank me later" from his post on X, he seemed to realize this. Meanwhile, the company has transferred most of its reserves to Coinbase Global Inc., and although it denied any plans to sell, it is difficult to assess what specific insider information might be involved. Trump's tariff policies are certainly not favorable to the crypto market, and the impact of Eric Trump's endorsements is similarly limited.Bloomberg believes that without effective enforcement and strengthening of regulations, oversight of the president's actions will become ineffective, and currently, Trump seems unencumbered by any constraints.

Galaxy Report: Venture Capital in the Cryptocurrency Sector Reaches $11.5 Billion in 2024, Still Below Previous Bull Market Levels

ChainCatcher news, according to CoinDesk, Galaxy Digital stated in a research report on Wednesday that despite the recent rise in digital asset prices, cryptocurrency venture capital (VC) activity remains below previous bull market levels. In 2024, the total capital allocation of venture funds to the crypto industry is $11.5 billion, down from 2023. Galaxy pointed out that in the early rounds of bull markets in 2017 and 2021, VC activity was highly correlated with crypto asset prices, "but in the past two years, despite the rise in cryptocurrencies, VC activity has remained sluggish."There are several reasons for the stagnation in the venture capital market. Galaxy stated that these reasons include a "barbell market," where Bitcoin and its new spot ETF take center stage, while meme coins have "limited marginal net new activity." These meme coins struggle to secure funding and have a "questionable lifespan."The report noted that new projects at the intersection of artificial intelligence (AI) and cryptocurrency are gaining increasing attention, and upcoming regulatory changes may bring more opportunities for stablecoins, decentralized finance (DeFi), and tokenization. The report indicated that some large investors may gain exposure to cryptocurrencies through Bitcoin spot ETFs, "rather than turning to early VC investments."Galaxy stated that the U.S. completed the most transactions and invested the most funds in the fourth quarter. Galaxy added that early-stage deals accounted for 60% of the total investment in the fourth quarter, with stablecoin companies raising the most funds.The report also noted that in 2024, venture capitalists invested a total of $11.5 billion in startups focused on cryptocurrency and blockchain. These funds invested $3.5 billion in 416 deals in the fourth quarter, a quarter-over-quarter increase of 46%.
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