Bitcoin Enters $35,000‥Largest Cryptocurrency Fund Launches Despite JP Morgan Warning

JP Morgan Warns of Further Decline
Andersen Horowitz Launches $2.2 Billion Fund

[Image source=Yonhap News]

[Asia Economy New York=Correspondent Baek Jong-min] Cryptocurrency Bitcoin is showing stability as it aims to enter the $35,000 range. On this day, the market received news of the launch of the largest-ever fund investing in cryptocurrency startup companies, along with warnings of further declines.

As of 3:20 PM Eastern Time on the 24th (local time), according to CoinMarketCap, the price of Bitcoin is recording $34,800, up 4% compared to 24 hours ago. Bitcoin briefly recovered to $35,000 around 2 PM on the same day.

Ethereum is trading at $2,014, up 2.8%, and Dogecoin is up 13% at 25 cents.

On this day, the famous venture capital firm Andreessen Horowitz formed a $2.2 billion cryptocurrency investment fund. Named 'Crypto Fund III,' this fund is the largest-ever venture fund related to cryptocurrency.

The fund plans to focus its investments intensively on blockchain and cryptocurrency-related startup companies.

Despite Bitcoin's recent extreme volatility, Andreessen Horowitz did not hide its expectations and proceeded with the investment.

The company stated, "The size of this fund shows the scale of the opportunity ahead of us. Cryptocurrency is the future of finance and, like the early internet, will transform every aspect of our lives."

Andreessen Horowitz also mentioned, "We believe the next wave of computing innovation will be driven by cryptocurrency. We are very optimistic about the potential of cryptocurrency."

Mark Andreessen, co-founder of Andreessen Horowitz, is the developer of Netscape, an early browser of the internet era. Companies such as Facebook, Instagram, and Lyft have grown with investments from Andreessen Horowitz.

On this day, JP Morgan predicted that the Grayscale Bitcoin Trust (GBTC) could induce a decline in Bitcoin prices.

Analyst Nikolaos Panigirtzoglou said, "Although Bitcoin's situation has somewhat improved, we are still approaching cautiously." He forecasted that Bitcoin prices could fluctuate significantly when the six-month GBTC stock sale suspension period ends in July.

It is analyzed that if GBTC investors start selling stocks, GBTC may sell the Bitcoins it holds. GBTC currently holds 654,600 Bitcoins, which is more than 3% of the total Bitcoins.

Contrary to JP Morgan's concerns, Ark Asset Management, operated by 'Money Tree Sister' Cathie Wood, is known to have additionally purchased a large amount of GBTC stocks following the recent Bitcoin crash.