HomeNewsBillionaire Peter Thiel's Crypto Confidence: Bitcoin and Ethereum at $30,000

Billionaire Peter Thiel’s Crypto Confidence: Bitcoin and Ethereum at $30,000

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  • Founders Fund invests $200 million in Bitcoin and Ether, indicating a bullish stance on cryptocurrencies.
  • The investment reflects a broader trend of institutional investors returning to the cryptocurrency market.

In a move that marks Silicon Valley’s heightened re-engagement with the cryptocurrency market, Founders Fund, the venture capital firm established by billionaire entrepreneur Peter Thiel, has made a significant investment in Bitcoin and Ether, the two leading cryptocurrencies by market capitalization. This news was shared by a well-known crypto journalist from China, Wu Blockchain.

Renewed Investment in Crypto

This strategic investment, amounting to $200 million, was split evenly between Bitcoin and Ether and took place from late summer to early fall of the previous year. This decision, informed by direct sources familiar with the matter, underscores a broader trend of institutional investors returning to the crypto space, a sector that had previously seen a dramatic downturn in 2022.

The investment by Founders Fund, a prominent entity in the venture capital landscape known for its early backing of revolutionary companies like SpaceX and Meta, is particularly noteworthy given the firm’s history with cryptocurrency investments.

As one of the pioneer institutional investors to delve into Bitcoin in 2014, Founders Fund had strategically liquidated its holdings before the market downturn in 2022, securing approximately $1.8 billion in returns.

The recent re-investment signals a robust comeback for crypto markets, which experienced significant turmoil last year following the collapse of major players such as the FTX exchange, leading to plummeting prices and a stringent regulatory crackdown.

Strategic Move by Founders Fund

In 2022, the crypto market witnessed a stark decline, with Bitcoin’s price falling to nearly $15,000, marking its lowest since 2020. However, over the past year, the prices of Bitcoin and Ether have shown resilience, with Bitcoin notably reaching $50,000 for the first time in over two years this week, despite remaining below its all-time high of $69,000 in November 2021.

The timing and scale of Founders Fund’s investment reflect a broader conviction in the potential of cryptocurrencies to serve as viable investment assets.

Peter Thiel, a co-founder of PayPal and Palantir and a known advocate for Bitcoin, has consistently praised the digital currency for its potential to act as a store of value akin to gold, as well as a hedge against the monetary policies of central banks.

His support for cryptocurrencies aligns with his libertarian views, emphasizing the importance of small government and innovation in technology.

Founders Fund’s decision to re-enter the cryptocurrency market was facilitated by the hiring of Joey Krug as a partner in April 2023, with a focus on crypto investing. This move signifies the firm’s ongoing commitment to exploring the frontiers of technology and finance, leveraging its substantial assets under management, which now exceed $12 billion.

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Syofri is an active forex and crypto trader who has been diligently writing the latest news related to the digital asset sector for the past six years. He enjoys maintaining a balance between investing, playing music, and observing how the world evolves. Business Email: info@ethnews.com Phone: +49 160 92211628