The price of bitcoin is in free-fall, having lost nearly $14,000 in worth since its 2017 peak. however whereas the cryptocurrency hovers around its lowest purpose of the year, a replacement $300 million fund dedicated to the crypto market has given investors contemporary optimism.
Leading risk capital firm Andreessen Vladimir Horowitz aforementioned its venture fund would be accustomed back firms within the area and like the emergent market. the corporate conjointly unconcealed it's no intention to sell any of its current cryptocurrency assets for a minimum of ensuing 5 years.
In a diary post description the $300m fund, Andreessen Vladimir Horowitz partner Chris Dixon said: "Although the bitcoin whitepaper is currently nearly ten years recent, we have a tendency to believe we have a tendency to area unit still early within the crypto movement.
He added: "We area unit semipermanent, patient investors. We’ve been finance in crypto assets for 5+ years. We’ve ne'er oversubscribed any of these investments, and don’t conceive to any time presently... If there's another 'crypto winter,' we’ll keep finance sharply."
The faith Andreessen Vladimir Horowitz has in cryptocurrency markets is all the additional vital considering the VC firm's track record: Since its origination in 2009 it's endowed in additional multi-billion greenback startups than the other company, together with AirBnB, Uber and Foursquare. it's conjointly been one in every of the foremost vital investors within the cryptocurrency area, having contributed to a $25 million funding spherical to the Coinbase exchange in 2013.
The cryptocurrency markets were additional boosted in the week by news that Facebook is reversing its call to ban adverts for bitcoin and different virtual currencies.
The move yet again stoked rumours that Facebook is designing either a significant acquisition within the area, or probably even its own cryptocurrency.
Facebook chief operating officer Mark Zuckerberg aforementioned at the start of two018 that he plans to "go deeper" with cryptocurrency technology Associate in Nursingd in could the social network – that boasts quite 2 billion users worldwide – launched an exploratory blockchain cluster.
Other analysts aforementioned that the lifting of Facebook's ban can facilitate reverse the value trend of bitcoin and different cryptocurrencies.
"The crypto market has been in bear territory over the last week approximately," Nigel inexperienced, founder and chief operating officer of monetary services firm deVere cluster, aforementioned in a very statement to The freelance.
"Facebook's step is expected to assist take it back towards the bulls... Savvy investors area unit gazing the larger image."
Looking at the 12-month value history of bitcoin, the cryptocurrency's current worth still represents a 260 per cent increase year-on-year.
According to Mr inexperienced, "the semipermanent mechanical phenomenon for cryptocurrencies is upward," citing four main reasons that embody interest from the likes of Andreessen Vladimir Horowitz.
"First, the planet desires and demands digital currencies in a very digital age," he said. "Second, cryptocurrencies area unit commencing to be adopted by established money establishments.
"Third, family name retail and institutional investors area unit jumping on board the crypto train. And fourth, regulation of the cryptocurrency sector is currently changing into inevitable."
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