A recent phenomenon worth paying close attention to: the pessimistic sentiment in the crypto market has spread from retail investors in the secondary market to professional investment circles.

I’ve seen many industry insiders express the same concerns. Kyle Samani, co-founder of Multicoin Capital, choosing to leave his position, is a clear signal in itself. Following that, the CEO of DeFiance also publicly stated that the crypto venture capital model has reached its end, and in the future, they will only focus on projects with actual cash flow.

What’s even more interesting is that Simon Dedic, founder of Moonrock Capital, shared his recent observations. He said that just this week, he had over five conversations with major investors and industry leaders, and their attitudes basically split into two camps: one skeptical about whether the market can truly recover, and the other has already exited the crypto space altogether, shifting their investments to AI and traditional tech stocks.

What does this indicate? It shows that the market downturn expectations have evolved from retail sentiment into institutional judgment. When professional investors like VCs start to turn pessimistic, it indicates that their outlook for the future market trend is indeed not optimistic. This shift in sentiment from the secondary market to the primary market, and then to the entire investment community, reflects a deeper cognitive change regarding market cycles.

This recent wave of market decline has indeed caused many to reevaluate their investment strategies.