Crypto Prices Jump, Will Funding Follow?
Crypto enthusiasts celebrated as former President Trump appeared poised to reclaim the White House, potentially leading to more crypto-friendly federal policies. On that day, Bitcoin surged approximately 7%, nearing $75,000, while Ether climbed by 9% to around $2,650. Public companies in the crypto sector also enjoyed significant stock price increases. Trump, noted for being a pro-crypto candidate, had advocated against government sales of seized Bitcoin and pledged to create a presidential advisory council on cryptocurrency. The sentiment among crypto supporters was bolstered by his promise to replace the SEC Chairman, known for strict regulatory measures. However, despite the spike in cryptocurrency prices, funding for crypto startups has drastically slowed in 2023, with startups garnering only $3 billion from 528 deals compared to more than $37 billion in 2021-22. The largest funding round this year was a $210 million convertible note round for a blockchain infrastructure developer. The changing political landscape may bolster crypto funding as regulatory approaches shift.
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