JPMorgan: Sluggish venture capital inflows could pose downside risk to the market

JPMorgan analysts noted that despite the recent recovery in the cryptocurrency market, the relative lack of venture capital flowing into the crypto industry this year could pose a downside risk. "Compared to previous years, our various cryptocurrency venture capital inflows appear to be relatively subdued so far this year... We have previously argued that a recovery in cryptocurrency venture capital inflows is a necessary condition for a sustained recovery in the cryptocurrency market, so the relatively subdued venture capital inflows so far pose a downside risk in our view," the team led by JPMorgan analyst Nikolaos Panigirtzoglou wrote in a report. (The Block)