Global Crypto VC Investment Q1 2019 - Q3 2024 (US$ Billion and Deal Count)

Since the U.S. presidential election results were confirmed, Bitcoin has surged past all-time highs, passing the US $100,000 mark for the first time. But the outlook for crypto venture capital (VC) investing—a sector closely tied to these bull markets—remains uncertain.

The regulatory landscape under President-elect Donald Trump’s second term may not resolve the crypto industry’s long-standing issues with enforcement-led oversight.

In Q3, crypto VC investment fell 31.1% quarter-over-quarter to US $1.7 billion reversing earlier momentum. Analysts attribute this decline partly to macroeconomic factors, including the persistent drag of higher interest rates.

While Bitcoin’s rally has traders speculating that Trump could push pro-crypto legislation, the correlation between crypto market performance and VC activity has weakened over time. Ongoing regulatory ambiguity and elevated rates have further complicated the picture.

Still, early signals suggest Trump-appointed financial regulators might craft a framework to address key industry needs—from federal tax reform on crypto trading to clearer processes for token registrations and crypto company incorporation.