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February 13, 2024

Silicon Valley's Founders Fund Reinvests in Bitcoin and Ethereum, Sparking Cryptocurrency Resurgence

Aria Mitchell
Written byAria MitchellWriter
Researched byNikos PapadopoulosResearcher

According to Reuters, billionaire Peter Thiel's venture capital firm, Founders Fund, is once again investing in Bitcoin and Ethereum, indicating a resurgence of interest in the cryptocurrency markets in Silicon Valley.

Silicon Valley's Founders Fund Reinvests in Bitcoin and Ethereum, Sparking Cryptocurrency Resurgence

The fund allocated $200 million between late summer and early fall last year to acquire crypto assets, with half of the investment in Bitcoin and the other half in Ethereum, the two largest cryptocurrencies. This information was reported by Reuters, citing reliable sources.

Founders Fund, being one of the pioneering institutional investors in cryptocurrency, began aggressively purchasing Bitcoin in 2014. However, it sold off its holdings before the crypto market experienced a downturn in 2022, resulting in gains of over $1.8 billion. In 2022, the price of Bitcoin dropped to approximately $15,000, the lowest it had been since 2020.

During the summer of last year, Founders Fund resumed buying Bitcoin when its price was below $30,000, and it continued to invest in Bitcoin and Ethereum for several months.

Peter Thiel, a co-founder of PayPal and Palantir, has publicly endorsed Bitcoin, describing it as a store of value similar to gold and a hedge against central bank monetary policy.

Over the past year, the prices of Bitcoin and Ethereum have steadily risen. This week, Bitcoin surpassed $50,000 for the first time in over two years, although it still fell short of its peak of $69,000 in November 2021.

Bitcoin investors have had a successful year so far, with the BTC market reaching new multi-year highs of $50,200 and a year-to-date return of 18.5%. Only 141 days in 2021 have seen a daily closing price higher than $50,200, accounting for 2.84% of Bitcoin's trading history.

Bitcoin has also experienced a 130% increase in the past 12 months and a growth of over 207% since the lows of November 2022. However, it is currently trading 28.6% below its all-time high.

At the time of writing, Bitcoin has retraced from its recent highs and has only risen by 1.54% in the last 24 hours to reach $49,064. Ethereum, the second-largest cryptocurrency by market capitalization, has seen a 5.93% increase in the previous 24 hours, reaching $2,649.

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Aria Mitchell
Aria Mitchell
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From Rotorua's scenic landscapes, Aria Mitchell shines as New Zealand's leading expert in localizing online casino content. Marrying Kiwi essence with global gaming insights, she's the name trusted nationwide.

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