Large investors are continuously showing interest in participating in the cake of the crypto sector. As a result, crypto-company fundraising has seen a surge in ratings as more prominent players drive prices higher.
Crypto deals are experiencing a price spike
According to PWC Crypto Leader Henri Arslanian:
“Boutique firms and family offices are being supplanted by big venture capital (VC) names, private equity players, and even some pension funds. Smaller venture capital firms are dissatisfied. “
Hence, crypto deals boil down to a high-bidder game as they attract the attention of larger players such as pension funds and private equity. As a result, prices have increased.
“Let’s say you are reviewing a deal and you think it’s worth $ 10 million, and you see big VCs coming in and bidding for a higher valuation. This often happens to companies in the early stages, say, $ 5 million to $ 20 million – prices get inflated. “
Crypto deals are heating up
Crypto deals are on an upward trend triggered by a surge in this market. For example, Bitcoin (BTC) rose to the psychological level of $ 40,000 after recently hitting lows of $ 29.5,000.
As a result, the BTC futures market heated up as funding rates turned positive on major exchanges, indicating the opening of significant long positions.
In addition, the Bitcoin derivatives market showed bullish signs such as the volume of perpetual swaps of over $ 86 billion and rising open interests.
On the other hand, the upward momentum of the BTC market has resulted in some traders getting into massive liquidation. As a result, total liquidations in the cryptocurrency ecosystem exceeded $ 1 billion.
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