Originally published on: April 09, 2024
The latest data shows a significant downturn in global fintech funding, hitting its lowest point in seven years in the first quarter of 2024. Despite a reported 11% increase in overall venture funding, fintech ventures experienced a 16% decline compared to the previous quarter.
According to the quarterly report by CB Insights, the venture capital market in Q1 2024 showcased a mix of positive and negative trends. While overall funding reached $58.4 billion, showing an 11% increase from the previous quarter, the fintech sector struggled to maintain its momentum and is now on par with 2017 levels.
During this period, the United States, a key player in fintech venture funding, faced growing scrutiny from regulatory bodies like the Federal Deposit Insurance Corporation, especially concerning banking relationships with fintech firms.
On the other hand, the cryptocurrency market experienced a surge in Q1 2024. Bitcoin hit record highs, with a market cap surpassing $2.9 trillion before easing back to $2.71 trillion. This upward trend comes as the next Bitcoin halving event approaches, with analysts predicting a potential 160% increase in price, reaching around $150,000.
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