Moonrock Capital's CEO and partner, Simon Dedic, has raised a red flag about the mounting uncertainty and anxiety gripping venture capitalists (VC) regarding the future of the crypto market.
Dedic highlighted that the divergence in viewpoints on the forthcoming trajectories has never been as stark. In a recent announcement, he emphasized that the crypto industry is traversing through a murky phase that could shape its history profoundly.
Engagements with key industry figures like prominent VCs, market influencers, top founders, and exchanges have unveiled a deep-seated schism within the sector about its future course.
"In all my years, I've never witnessed such a stark contrast in opinions on the path ahead. The level of indecision and apprehension among insiders and professionals is unparalleled," Dedic articulated.
The CEO underscored that a notable proportion of market participants have either exited or are contemplating doing so. Simultaneously, others grapple with the fallout of strategic misjudgments, resulting in substantial hurdles.
Furthermore, he noted a diminishing belief in the crypto market among an expanding group. RootData's latest insights reflect this uncertainty, indicating a noticeable decrease in VC investments in the crypto realm over the past month vis-à-vis the previous two months.
The data reveals a doubling in the percentage of VCs abstaining from investments, along with a similar trend among those making 1 to 4 investments.
Additionally, the analysis highlighted that more than half of active VCs have refrained from making any or just one investment, showcasing a cautious and risk-averse attitude in the market.
"The funding stall implies a potential deepening of the bear market phase," RootData cautioned.
Nonetheless, not everyone is jumping ship. Dedic pointed out that a faction remains steadfast, believing that a strong altcoin season still looms ahead.
"This phase will separate the champions from the rest," he remarked.
Industry experts have deliberated on the distinctiveness of the ongoing cycle. The influx of new token launches has led to liquidity fragmentation, further prolonging the awaited alt season.
Nonetheless, analysts have highlighted potential signs of an altcoin season, citing a prospective decline in Bitcoin (BTC) dominance and the gradual detachment of certain altcoins from BTC.