VCs put off by looming stagflation
VCs require stable and favorable macroeconomic conditions that can support the growth of high-risk ventures. The risk of a long-term stagflationary environment makes it difficult to achieve this, which is why VC investment sentiment has recently tended toward being bearish. Until there is a shift in macroeconomic indicators that turn investors from risk-off to risk-on, there may continue to be a stagnant or decreasing investment sentiment in the blockchain industry.
On the mining front, the highest gains were recorded by Riot Platforms at 60%, Cipher Mining at 53%, and Terwulf, which now runs a nuclear-powered mining facility providing it with cheap electricity, at 47%. These top performers compare favorably to the MoM return on BTC at 23.0% and a 20.4% uptick in mining revenues. However, on aggregate, crypto stocks still significantly underperformed Bitcoin.
Yet the macroeconomic outlook remains shaky, with markets likely to continue a risk-off approach. With new information arriving with Q1 2023 results, investors will be paying close attention to financial reports for any indication of strength or weakness in the crypto industry.Cointelegraph’s Research department comprises some of the best talents in the blockchain industry.
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Why do VCs tread lightly? Let’s just take a look at latest VC deal:
Bitcoin can't be held back forever 💪
CS That's the beauty of Bitcoin