Investment activity in the cryptocurrency sector experienced a sharp decline in May 2025, as revealed by Odaily. Only 62 funding rounds were successfully completed that month, marking a record low since January 2021. Despite this reduced number of deals, total funding reached a significant $909 million, making it the second-highest month for investment in the year to date, following March’s 78 rounds totaling $2.89 billion. Market analysts attribute the decline to several key factors: First, cryptocurrency prices have been highly volatile with Bitcoin experiencing fluctuations since peaking in January. This volatility was further exacerbated by concerns surrounding tariff policies that surfaced in late May. Second, a challenging macroeconomic environment has emerged as the Federal Reserve’s high-interest rate policy has put pressure on risk assets across the board. Finally, seasonal factors play a role as summer tends to be a slower period for investment.