Home etftrends.com More Venture Capital Funding in 2022 Should Boost Bitcoin

More Venture Capital Funding in 2022 Should Boost Bitcoin

More institutional investor money in 2022 will help boost bitcoin’s price, especially with more venture capital funding in the new year.

According to a Bloomberg article, venture capital money flowed into cryptocurrencies to the tune of $30 billion, which topples all previous years. More interest from venture capital money came while bitcoin’s all-time high was spurred by a bitcoin futures exchange traded fund (ETF) finally hitting the U.S. markets in October.

While bitcoin itself is primarily seen as a store of value given that it doesn’t have the same use case as, say, Ethereum, it’s still representative of the whole cryptocurrency space. That space is constantly expanding with interest growing in non-fungible tokens (NTFs), the metaverse, and blockchain technology as a whole.

“We’ve moved beyond just digital gold. We’ve got financial services, art, gaming as a subcategory of NFTs, Web 3.0, decentralized social media, play-to-earn — all of that made investors think, ‘We don’t have enough exposure,’” said Spencer Bogart, general partner at San Francisco-based Blockchain Capital LLC.

It’s an obvious sign that venture capitalists see that opportunities exist beyond cryptocurrencies. Interest in other crypto-related ventures will hopefully spill over into more price increases for bitcoin and other alt coins.

“Investors are funding anything and everything,” PitchBook analyst Rob Le said.

More Venture Capital Funding in 2022 Should Boost Bitcoin 1

Bitcoin Crossing $100,000?

How high can bitcoin go in 2022? If venture capital money can continue pouring into cryptocurrencies, bitcoin should benefit as the leading cryptocurrency.

More ETF providers could be looking to push more bitcoin-related products in front of the Securities Exchange Commission (SEC) for approval. The SEC did recently give a thumbs down to spot price bitcoin funds, but as long as there’s demand for more bitcoin-related funds, providers could continue to tweak products to get past the SEC.

In the meantime, the capital markets will watch what bitcoin does in 2022 now that it’s attained a level of recognition from traditional finance. Some analysts are foreseeing a price of $100,000.

“While some traders are now questioning the validity of the stock-to-flow price model, crypto analyst and pseudonymous Twitter user ‘DecodeJar’ still sees BTC surpassing the $100,000 price point within the next few months and according to the analyst, the price could climb as high as $250,000 by the end of 2022,” a Cointelegraph article says.

For more news, information, and strategy, visit the Crypto Channel.

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