- The price of Bitcoin is above 30,000 dollars, but according to Zschaepitz, more is needed.
- There is a decline in crypto venture funding in 2023.
The price of Bitcoin has increased by more than 80% since the beginning of the year. But is this increase enough to call it the start of a “bull season”?
Is Bitcoin’s Rise to 30,000 Dollars Enough?
Holger Zschaepitz, a leading financial analyst, said that Bitcoin’s increase above 30,000 dollars is only the beginning and much more is needed to ensure a sustainable crypto recovery.
Zschaepitz’s comments came against the backdrop of a crypto industry that faced significant turmoil last year, including an 87% drop in venture funding for crypto and blockchain startups in the first quarter of 2023.
The consequences of last year’s crypto scandals and the collapse of several major startups left the industry in a state of uncertainty. While Zschaepitz acknowledges that Bitcoin’s recovery may be the start of something new, he believes that it will not be able to recover from the damage caused by the previous decline.
Nevertheless, Ethereum has successfully completed a network upgrade, and the potential end of the tightening monetary policy cycle could create significantly more favorable conditions for a crypto rally.
As Zschaepitz suggests, the rise of Bitcoin’s price to 30,000 dollars may only be the beginning, and a more robust and sustainable recovery will likely depend on a range of factors beyond the performance of a single cryptocurrency.
Venture Funding is Declining!
One of the recent challenges for the crypto sector has been a significant decline in venture funding. In the first quarter of 2023, crypto and blockchain startups raised only $900 million, an 87% drop from the same period last year.
This decline has raised concerns about the growth expectations of a sector struggling in the wake of major failures such as FTX and Celsius. Despite the challenges, there are signs of progress in the sector.
#FTX WILL CONSIDER RE-STARTING IS CRYPTO EXCHANGE IN SECOND QUARTER -FTX ATTORNEY – RTRS
— CoinOtag EN (@coinotagen) April 12, 2023
Meanwhile, it was reported on April 12 that FTX, a bankrupt crypto exchange from last year, plans to relaunch. It remains to be seen whether FTX, which has become an important player in the crypto sector, will regain the same popularity when it reopens.
