Bitcoin price recovery, blockchain industry ushered in new investment and financing opportunities

In the past period of time, the price of Bitcoin has experienced dramatic fluctuations, and its price has been fluctuating with the changes in market sentiment. However, the recent recovery of Bitcoin prices has not only excited investors, but also injected new vitality into the investment and financing activities of the entire blockchain industry. This phenomenon is not accidental, and there are profound market logic and economic backgrounds behind it. This article will explore in depth the reasons for the recovery of Bitcoin prices and how this trend will drive the continued recovery of investment and financing in the blockchain industry.

As a decentralized digital currency, Bitcoin was first born in 2009, and the blockchain technology behind it provides strong support for it. In recent years, with the gradual popularization of digital currencies, the price of Bitcoin has experienced several rounds of sharp rises and falls, and investors' expectations and disappointments for its market performance are intertwined. Especially in 2020 and 2021, the price of Bitcoin has repeatedly set new highs, attracting investors and institutions around the world to participate. However, after entering 2022, due to changes in the global economic environment, especially the impact of rising interest rates and inflation, the price of Bitcoin once fell to a low point.

Despite this, the recent recovery of Bitcoin prices has injected new hope into the market. According to market data, the price of Bitcoin has risen by more than 20% in just a few weeks. Behind this recovery, first of all, it benefits from the improvement of market sentiment. As the global economy gradually recovers from the shadow of the epidemic, investor confidence is also gradually recovering. At the same time, more and more institutional investors have begun to pay attention to Bitcoin again, believing that its value as a digital asset still exists. For example, a well-known investment company recently announced that it would increase its holdings of Bitcoin, believing that its long-term prospects are still optimistic, which has attracted widespread attention from the market.

Secondly, innovation and application at the technical level have also provided strong support for the recovery of Bitcoin. In recent years, the continuous development and improvement of blockchain technology has significantly improved the transaction efficiency and security of Bitcoin. For example, the launch of the Lightning Network provides Bitcoin with faster transaction confirmation time, which makes Bitcoin more practical in daily payments. With the advancement of technology, more and more merchants have begun to accept Bitcoin as a payment method, which not only improves the use scenarios of Bitcoin, but also provides a solid foundation for its price recovery.

As the price of Bitcoin recovers, investment and financing activities in the blockchain industry have also become active. According to relevant data, in the first quarter of 2023, the total investment and financing of the blockchain industry reached a record high, and many projects received millions or even tens of millions of dollars in investment in a short period of time. This phenomenon is worth pondering. What does the recovery of the blockchain industry mean?

First, the recovery of the blockchain industry indicates that the importance of technological innovation is becoming increasingly prominent. With the rise in the price of Bitcoin, more and more startups and projects have begun to emerge, and many emerging blockchain applications have gradually been recognized by the market. For example, emerging fields such as decentralized finance (DeFi) and non-fungible tokens (NFT) are attracting a large number of investors. These fields not only demonstrate the potential of blockchain technology, but also provide investors with new profit opportunities.

Second, the recovery of the blockchain industry also reflects the market's increasing recognition of digital assets. More and more institutional investors have begun to include digital assets in their investment portfolios, believing that digital currencies such as Bitcoin can be used as an effective tool to hedge inflation. Against this background, the investment and financing activities in the blockchain industry have continued to increase, attracting a large influx of funds.

However, despite the continued recovery of investment and financing activities in the blockchain industry, the market still faces many challenges. For example, the uncertainty of regulatory policies remains the focus of investors. Governments have different regulatory attitudes towards digital currencies, and some countries have even imposed strict bans on digital currencies, which will undoubtedly affect the stability of the market. Therefore, when participating in the investment and financing of the blockchain industry, investors need to remain vigilant and reasonably assess risks.

In addition, the rapid development of technology may also bring new competition and challenges. As more and more projects enter the market, the intensified competition requires investors to choose investment targets more carefully. Some projects may face the risk of failure due to immature technology or unclear business models. Therefore, in-depth analysis of the background, team and market prospects of the project will become the key to the success of investors.

In this era full of opportunities and challenges, how will the future of the blockchain industry develop? The recovery of Bitcoin prices has undoubtedly brought new hope to the industry, but investors should also remain rational and examine market changes while chasing opportunities. Only through in-depth research and analysis can we be invincible in this rapidly changing market.

In general, the recovery of Bitcoin prices has injected new vitality into the investment and financing activities of the blockchain industry. With the improvement of the market environment and the advancement of technology, more and more investors have begun to pay attention to this field again. Although the market still faces many challenges, in the long run, the blockchain industry still has broad development prospects. While seizing opportunities, investors need to remain rational and make prudent decisions to achieve sustainable returns on investment. The future blockchain industry will not only be a stage for digital currency, but also a hotbed for technological innovation and business model innovation.

The four most famous international exchanges:

Binance INTL	OKX INTL	Gate.io INTL	Huobi INTL
China Line　APP DL	China Line　APP DL	China Line　APP DL	China Line　APP DL

Note: The above exchange logo is the official website registration link, and the text is the APP download link.

In July, which just ended, the investment and financing environment, which was still cold, did not change. According to data from Qingke Private Equity, about 173 funds completed fundraising in July, raising a total of 27.26 billion yuan. However, the new funds under Joy Capital and Huaxing Capital raised nearly 5 billion yuan and 6.5 billion yuan respectively, and the fundraising amount of the two funds accounted for 42% of the total fundraising in July.

In terms of investment, the number of investments in the blockchain industry has increased significantly, and the investment and financing of the blockchain industry is linked to the secondary market. Since 2019, Bitcoin has experienced a transition from a bear market to a bull market.

After the price of Bitcoin plummeted by 50% in the fourth quarter of 2018, it hit a two-year low in early January 2019. After nearly half a year of silence, Bitcoin made a strong push in April and ran all the way. The release of the Libra white paper by Facebook, an Internet social giant with 2.7 billion users, has injected a shot in the arm to the entire industry. At the same time, Bitcoin also reached a high of more than 88,000 yuan, driving other mainstream currencies to rise.

According to the reporter's statistics, there is a certain correlation between blockchain investment and financing events and Bitcoin price fluctuations. In the first quarter of 2019, only 49 blockchain companies received investment, which was the quarter with the fewest blockchain investment events since 2018. However, this data soon changed. In the second quarter of 2019, a total of 70 blockchain companies received investment; in the past July, 33 blockchain companies received investment, and it is expected to return to the level of the first quarter of 2018 in the third quarter.

In the first half of 2019, the total investment amount of 75 blockchain projects with disclosed investment amounts reached 4.9 billion yuan, of which strategic investment, A round and seed round investment were the largest, reaching 35, 23 and 21 respectively. The average financing amount per project was 65 million yuan, and the four major areas with the most financing were social DApp, protocol, public chain and comprehensive management of digital assets.

In July this year, 12 blockchain projects with disclosed investment amounts raised a total of 450 million yuan, with an average financing amount of 37.5 million yuan per project. The project with the most financing was still digital currency.

Ant Financial and Japan's SoftBank frequently make investments

In the first half of 2019, many traditional large institutions and large enterprises appeared among the 283 investors, including IDG, Ant Financial, and Japan's SoftBank.

In February this year, Sequoia Capital India invested in community tool developer Band Protocol; in February, Fidelity International invested in cryptocurrency data provider Coin Metrics; in April, Paypal invested in digital identity authentication provider Cambridge Blockchain; in May, Ant Financial invested in Israeli privacy technology developer QEDIT; in May, Japan's SoftBank invested in blockchain animation project Myou.

The latest data shows that Ant Financial's blockchain project has so far landed more than 40 application scenarios, involving public welfare, cross-border remittances, financing for small and micro enterprises, genuine product traceability, rental housing traceability and other fields.

Not only traditional large institutions favor blockchain investment, but many individual investors in traditional fields have also set their sights on blockchain projects.

In July, Cai Wensheng, Chairman of Meitu, made a strategic investment in the MXC exchange in his personal name. Founded in April 2018, the MXC exchange has 2 million registered users, more than 200,000 daily active users, and a daily trading volume of more than US$600 million.