Venture capital firm reportedly invests in leading cryptocurrencies, signaling confidence in the market.
Founders Fund, led by tech investor Peter Thiel, reportedly invested $200 million in Bitcoin and Ethereum last year, a move suggesting continued belief in the potential of cryptocurrencies despite recent market downturns. This news could boost investor confidence, but caution and individual research remain crucial in the volatile crypto space.
Late Summer Investment
Founders Fund, the venture capital firm co-founded by tech billionaire Peter Thiel, has made a significant bet on the cryptocurrency market, investing $200 million in Bitcoin and Ethereum (ETH) last year, as reported by Reuters. This move underscores the continued interest of prominent investors in the crypto space despite recent market downturns.
The $200 million investment was split evenly between Bitcoin and Ethereum, with the timing of the investment occurring from late summer to early fall 2023 when Bitcoin was trading below $30,000. This allocation highlights Founders Fund’s confidence in both leading cryptocurrencies and their long-term potential.
Thiel’s History with Crypto
Peter Thiel, a well-known figure in the tech industry and an early investor in Facebook, has been a vocal advocate for Bitcoin for many years. He previously referred to Bitcoin as “digital gold” and made an initial investment in the cryptocurrency through Founders Fund back in 2014. Thiel’s continued involvement in the crypto market demonstrates his ongoing belief in its transformative potential.
The investment from Founders Fund could bolster investor confidence in the cryptocurrency market, particularly in Bitcoin and Ethereum, which are considered two of the most established and widely adopted cryptocurrencies. The decision to invest during a period of market uncertainty suggests a bullish outlook from Thiel and Founders Fund.
However, it’s essential to recognize that the crypto market remains highly volatile, and individual investment decisions should be made with caution. While some experts anticipate a potential rebound in prices, others remain cautious about the market’s unpredictability.
Details about the exact source and nature of Founders Fund’s investment remain undisclosed, as the Reuters report relies on unnamed sources. Bitcoin’s current price hovers around $50,000, while Ethereum is trading at approximately $2,680. These figures indicate a significant increase in value since the time of Founders Fund’s investment.