Crypto funding dropped 30%, is this a bearish sign ?

[Firstfrost]

Crypto funding reportedly fell by about 30% in August, even though many projects showed solid growth. Some traders viewed this as a bearish signal, stating that VCs are pulling back because they expect weaker conditions ahead. Others argue it could actually be bullish, since less funding pumped into the market often forces weaker projects out, leaving the stronger ones to thrive.

That makes me wonder whether the slowdown is simply part of the cycle setting up for the next rally or if it’s could be capital shifting toward other industries such as AI.

Personally, I see it as two ways; the pullback could hurt short-term growth but it might also create a healthier foundation for the next bull run. What’s your take, could this decline in funding be a bearish warning or the pullback before another breakout ?

[asriloni]

It looks like something big ahead. Maybe they know something we don't. 



I won't deny that caused by chart showed how less funds is being invested in the new projects. However, this is normal in the crypto when less reliable project exist. VCs will hold their fund rather than investing their funds to the shitty project. Sometimes, i think the slowdown in the crypto fundraise refer to the bearish trend that may come soon.

As far as i know, VCs being more active investing when we're heading to the bullish season, but slowdown their movement when we're heading the bearish season.

[Dunamisx]

Am not to argue on whether this is true or not, but once we say that there are opportunities in cryptocurrency and we also know how volatile it is, we cant always expect for an uptrend each time, at least sometimes this has to be that some of the investors may shift in to other investment when they are dumping to later pump it back, whereas having an uptrend on most of the market prices are also more convincing that people should not just opt out like that, you wont be surprised if the investors suddenly came back and continue buying and buying the more.

[Firstfrost]

Am not to argue on whether this is true or not, but once we say that there are opportunities in cryptocurrency and we also know how volatile it is, we cant always expect for an uptrend each time, at least sometimes this has to be that some of the investors may shift in to other investment when they are dumping to later pump it back, whereas having an uptrend on most of the market prices are also more convincing that people should not just opt out like that, you wont be surprised if the investors suddenly came back and continue buying and buying the more.

I hope this is the case (a temporary cool down) and not an early signal for a deeper bearish cycle. If this is one of those phases where the market is shaking out weak hands before stronger projects get bigger capital, then it would be great. Really want to new ATHs before this cycle ends.

[Odusko]

Am not to argue on whether this is true or not, but once we say that there are opportunities in cryptocurrency and we also know how volatile it is, we cant always expect for an uptrend each time, at least sometimes this has to be that some of the investors may shift in to other investment when they are dumping to later pump it back, whereas having an uptrend on most of the market prices are also more convincing that people should not just opt out like that, you wont be surprised if the investors suddenly came back and continue buying and buying the more.

I hope this is the case (a temporary cool down) and not an early signal for a deeper bearish cycle. If this is one of those phases where the market is shaking out weak hands before stronger projects get bigger capital, then it would be great. Really want to new ATHs before this cycle ends.

Cool off time is for more buyer's to take position on those assets, alot of time we need not to worry too much when bearish events occurs, sometimes we will be in luck to have an available cash to buy into the market but other times we may be upset to see that a project we invested in have fallen behind sharply.

[andywolfer]

Sounds more like a normal cycle to me. Short-term it’s a bit of a drag, but long-term it’s actually healthy — weak projects fade out and the stronger ones stick around. Could be laying the groundwork for the next run rather than a real warning sign.

[LOVER BOY 422]

A 30% drop in cryptocurrency prices  is not nessarrly a bearish sign and could be a healthy correction within a larger bull market ,as seen in past cycle , analyst suggest that will a 30% drop is significant,the overall market trend can remain bullish if other indicators,such as a higher "low pattern emerging or long term holder support remain strong,however it's important to remember that crypto market are volatile and external factors can influence the trend.

[o48o]

Sounds more like a normal cycle to me. Short-term it’s a bit of a drag, but long-term it’s actually healthy — weak projects fade out and the stronger ones stick around. Could be laying the groundwork for the next run rather than a real warning sign.

Weak projects like what? This tariff announcement affected to most high cap cryptocurrency projects. Weeding out some smaller weak projects probably wouldn't even show in any news cycles, or in your radar, unless you were holding them, as everyone knows they are fluctuating so much. That's not news.

And sure, every drop is healthy when we are in this market, even the ones they don't recover from. And that said, i don't think that most pumps are healthy.