BTC briefly broke through $41,000 before falling. Data shows that crypto investment is still attractive

On March 16, BTC rose briefly, quickly breaking through $41,000, with a daily increase of 5.86%, but then fell back below $40,000.

In recent times, the crypto market has been volatile and market concerns have increased. Many people believe that the next trend of Bitcoin should be losses rather than profits. At the same time, market concerns about possible US regulation have exacerbated market tensions.

On March 16, former CIA employee Edward Snowden said at the Camp Ethereal 2022 summit that the government sees cryptocurrency as an "evolving threat." Snowden said Ethereum has the same privacy issues as Bitcoin, but he still called the Bitcoin blockchain a fair competitive environment and saw the power of cryptocurrency and decentralized technology.

In addition, the U.S. SEC also issued an investor announcement as early as February, warning investors to be wary of the risks of interest-bearing accounts with crypto assets. The announcement mentioned that interest-bearing accounts with crypto assets should not be expected to have the same safety, security, and robustness as bank or credit union deposits. At the same time, crypto assets held in interest-bearing accounts can be used to invest in various crypto-related products, programs, or other activities, including lending programs that lend crypto assets to borrowers. These investment activities may bring many risks, including volatility and illiquidity in the crypto asset market; the risk that the company holding your crypto assets may go out of business or go bankrupt; and regulatory changes by federal, state, or foreign governments that may restrict the use and exchange of crypto assets.

As the market cools down and investment sentiment continues to decline, the TVL of DeFi across the entire network has also continued to decline. As of now, the total locked volume of DeFi across the entire network is US$154.4 billion, a decrease of 1.48% month-on-month; it is 29.6% lower than the historical high of US$219.47 billion (January 19, 2022).

But despite this, long-term investors and institutional investors continue to be optimistic about the crypto market. Brett Munster of Blockforce Capital said that as long as the price of Bitcoin falls, long-term investors will enter the market.

In addition, Oppenheimer's stock research analyst Owen Lau also gave a "hidden value" evaluation to companies that continue to invest in the encryption field. In a report to clients, Owen Lau said that the venture capital business of the cryptocurrency exchange Coinbase is underestimated and has "hidden value" in its Coinbase Ventures department, which investors have not yet fully realized.

Meanwhile, investment in the crypto space continues to grow. On March 16, research firm Fundstrat said in its latest report to clients that the industry has attracted an average of $800 million to about $2 billion in investment per week since the beginning of the year. In the last three weeks of February, venture capital buyers invested about $4 billion in the cryptocurrency space, and data showed that venture capital firms invested another $400 million in startups in the space last week.

According to data from Lipper, a fund analysis firm under Refinitiv, U.S. investors withdrew a net $7.8 billion from bond funds in the week ending March 9, while global investors are actively investing in cryptocurrency funds and companies.