A report by ‘Big Four’ accounting firm PwC has detailed how the cryptocurrency industry struggled to attract investment in 2019.
The value of cryptocurrency mergers and acquisitions (M&As) fell by 76% from $1.9 billion in 2018 to just $451 million in 2019, a sharp decline considering Bitcoin rallied from $3,500 to $14,000 in the second two quarters of last year.
“The rise in the price of Bitcoin in Q2 and Q3 2019, and the associated interest in crypto assets did not yet materialise by way of increased new capital into the industry,” the report said, as quoted by Bloomberg.
Crypto freeze continued last year as deals plunged, PwC says https://t.co/Qk2RqnVbv5 pic.twitter.com/nt6tZ8sbPO
— Bloomberg (@business) April 6, 2020
The report goes on to state that crypto assets are “not immune” to global crises including the topical coronavirus pandemic, which caused Bitcoin to slide from $10,500 to $3,600 in March.
“The crypto industry is not immune to the global headwinds and the number and value of crypto fund-raising and M&A deals may be impacted in 2020,” said Henri Arslanian, PwC global crypto leader and one of the authors of the report.
While the report depicts a rather negative view on cryptocurrency investments it does expect more Asian and Middle Eastern family offices in 2020 as global equity markets continue to suffer.
“We expect to see more APAC and EMEA based family offices looking at the market turbulence as a good time to invest in promising crypto companies,” the report concludes. “We expect to see further consolidation in 2020.”
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