Bitcoin and the aggregated crypto markets have had a great 2020 so far, which has piqued investors’ interest in the markets and has led to an increased sense of hope amongst active participants.
This may be emblematic by the possibility that billions of dollars’ worth of unannounced capital is close to being injected into the crypto markets, with the allocation of this funding to top projects potentially allowing for significant ecological development in 2020.
This positive ecological growth coupled with increasing technical strength could be enough to give the markets some further momentum throughout the year ahead.
Funds Gain Billions in Unannounced Capital to Inject into Crypto Markets
Ash Egan, the head of crypto at Accomplice – a tech-focused venture capital firm – explained in a tweet that there is currently $2 billion in capital being allocated to US-based crypto funds, with this capital being distributed amongst a collection of various sized funds, including three “mega funds.”
“There is ~$2B of unannounced capital being allocated into US-based crypto funds rn. Funds are distributed across 3 mega funds ($300m+), 4 large funds ($100m-$300m), and 4 sub $100m funds. 2020 is gonna be a wild year,” he noted.
There is ~$2B of unannounced capital being allocated into US-based crypto funds rn.
Funds are distributed across 3 mega funds ($300m+), 4 large funds ($100m-$300m), and 4 sub $100m funds.
2020 is gonna be a wild year.
— Ash Egan (@AshAEgan) January 24, 2020
It is important to note that although Egan does not provide a specific source for this information, his position within the industry does provide some veracity to his assertion.
Prior to the 2020 Rally, Funds Were Showing Signs of Capitulation – What’s Changed?
It is important to note that the potential injection of billions of dollars’ worth of capital into the markets comes close on the heels of recent comments from other prominent cryptocurrency venture capitalists regarding there being a sense of capitulation amongst major funds.
Avichal Garg, a co-founder at Electric Capital, explained that he had talked to managers at multiple liquid crypto funds, who noted that they are largely exiting the crypto markets.
“Spoke with multiple liquid crypto fund managers this week. They all have investors leaving their funds and leaving crypto altogether. Feels like true capitulation is finally happening,” he explained.
Spoke with multiple liquid crypto fund managers this week. They all have investors leaving their funds and leaving crypto altogether.
Feels like true capitulation is finally happening.
— Avichal Garg (Electric Capital) ⚡ (@avichal) January 4, 2020
Garg’s comments came just before the 2020 rally kicked off, which may signal that the changes in the overall market structure over the past few weeks have shifted fund’s opinions of the markets and invalidated this short-term bearishness.
If major funds really are on the brink of injecting billions of dollars into the crypto markets, it is highly probable that this will help perpetuate the development of the industry, which could help catalyze a sustainable macro rally.
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