To reenter the cryptocurrency market, billionaire investor Peter Thiel’s venture capital firm, Founders Fund, has made a sizeable $200 million investment in bitcoin and ethereum. This move suggests that Silicon Valley is once again interested in digital assets.

A Clever Step During the Market Rebound

Between late summer and early fall of the previous year, Founders Fund made this substantial investment, dividing the money in half and giving it to ether, the other major cryptocurrency by market capitalization, and bitcoin. The action is a calculated gamble that the bitcoin industry would rebound after a turbulent 2022.

This undisclosed investment by Founders Fund is indicative of a larger pattern in which institutional investors are gradually making their way back into the cryptocurrency market. The collapse of FTX, a prominent cryptocurrency exchange, and other failures in 2022 caused a regulatory crackdown and a subsequent drop in market prices for the once popular investment idea.

A Resurrection in Crypto

The $200 million investment from The Founders Fund represents a recovery for the cryptocurrency markets, which saw a significant decline in 2022. The price of the main cryptocurrencies fell precipitously as a result of the industry’s lack of trust following the failure of FTX and other events.

The price of bitcoin fell to about $15,000 in 2022, the lowest level since 2020. But during the course of the last year, ether and bitcoin have both gradually recovered. Since its peak of $69,000 in November 2021, Bitcoin has achieved important milestones, most notably breaking the $50,000 mark.

The History of Founders Fund in Crypto

Founders Fund was one of the first institutional investors to enter the cryptocurrency field and made a significant purchase of bitcoin in 2014. They did, however, sell their shares prior to the 2022 crypto market meltdown, collecting profits of almost $1.8 billion.

Founder’s Fund bought bitcoin last summer at a discount to its market value of under $30,000. Taking advantage of favorable market conditions, the company kept accumulating ether and bitcoin over the ensuing months. As of right now, the average cost of these purchases is unknown.

Peter Thiel’s Continued Backing of Bitcoin

Co-founder of Palantir and PayPal Peter Thiel has been a strong supporter of bitcoin. Thiel sees bitcoin as a hedge against the monetary actions of central banks and compares it to gold as a great store of value. Thiel’s open endorsement of bitcoin lends legitimacy to Founders Fund’s most recent cryptocurrency venture.

A representative for Founders Fund declined to comment on the specifics of their latest cryptocurrency investments, keeping the precise nature of their calculated move a secret despite the recent spike.