In a strategic move to bolster the Web3 ecosystem, venture capital firm Lemniscap has unveiled a new $70 million fund aimed at early-stage blockchain startups. Announced on August 28, this latest initiative marks a significant expansion of Lemniscap’s commitment to nurturing blockchain innovation across multiple sectors.
The newly established fund is set to allocate resources to a diverse array of Web3 projects, including zero-knowledge infrastructure, consumer applications, emerging Bitcoin ecosystems, security, and decentralized physical infrastructure (DePIN). Notably, the fund has garnered support from Accolade Partners, a prominent fund of funds known for its focus on early-stage blockchain ventures.
Lemniscap, a veteran in the venture capital space, has been a key player in the blockchain industry since launching its first fund in 2017, just before the 2018 crypto market downturn. The firm has since established a robust track record, investing in over 130 Web3 projects and backing notable protocols such as Avalanche, Fairblock, Celestia, and Axelar. Lemniscap’s investment philosophy emphasizes long-term success over immediate gains, providing not just financial backing but also strategic guidance to its portfolio companies.
The Web3 startup ecosystem is showing signs of revival in 2024, following a challenging year marked by bankruptcies, regulatory hurdles, and a decline in crypto token prices. According to Pitchbook, crypto startups raised a substantial $2.7 billion in the second quarter of this year, with infrastructure projects like Monad and BeraChain leading the charge. Despite a 12.5% decrease in the number of deals, the increased capital per deal suggests a more selective but optimistic investor outlook.
In 2023, the crypto sector secured $10.1 billion in investments, and current trends indicate a potential increase to $10.8 billion by the end of 2024. This growth underscores the ongoing interest and confidence in blockchain technology, with investors focusing on projects with robust potential for long-term impact.
As Lemniscap’s new fund prepares to deploy capital, it stands as a testament to the enduring promise of Web3 innovation and the evolving landscape of venture capital in the blockchain space.
The crypto market shows positive signs in the second half of April 2025. Several divergence signals have appeared, suggesting a potential recovery for Bitcoin and altcoins.
Divergence is a key concept in data analysis. It happens when the values of two metrics suddenly shift and move in opposite directions compared to their previous trend. This often signals a change in price momentum. Based on expert analysis and market data, this article highlights five major divergence signals—three for Bitcoin and two for altcoins—to help investors better understand the market outlook.
3 Divergence Signals in April Point to a Bitcoin Price Rally
Historically, Bitcoin and the DXY Index (US Dollar Index) move in opposite directions. When DXY rises, Bitcoin tends to fall, and vice versa. But from September 2024 to March 2025, Bitcoin and the DXY moved in the same direction.
Joe Consorti, Head of Growth at TheyaBitcoin, noted that Bitcoin started decoupling from the US dollar after the announcement of the sweeping tariff regime. A chart from his post shows that in April, while the DXY fell sharply from 103.5 to 98.5, Bitcoin surged from around $75,000 to over $91,000.
Divergence Between BTC And USD. Source: Joe Consorti
This divergence may reflect investors turning to Bitcoin as a safe-haven asset amid global economic uncertainty caused by the tariffs.
“Bitcoin has been diverging from the US dollar since the US announced its sweeping tariff regime. Amidst this global economic reordering, gold and bitcoin are shining,” Joe Consorti predicted.
Another key divergence comes from Tuur Demeester, an advisor to Blockstream. He pointed out a separation between Bitcoin and the NASDAQ Index, which represents tech stocks. Historically, Bitcoin closely followed the NASDAQ due to its ties to tech and macroeconomic sentiment.
But in April 2025, Bitcoin started showing independent growth. It no longer moves in sync with the NASDAQ. While some, like Ecoinometrics, argue that this divergence isn’t necessarily bullish, Demeester remains optimistic.
Divergence Between Bitcoin And NASDAQ. Source: Ecoinometrics
“Bitcoin divergence” and “Bitcoin decoupling” will be dominant headlines for 2025,” Tuur Demeester said.
Specifically, NASDAQ has faced downward pressure from interest rate concerns and slowing growth. Meanwhile, Bitcoin has shown strength, with significant price gains. This suggests that Bitcoin is cementing its role as a standalone asset less tied to traditional markets.
Data from CryptoQuant highlights another divergence—this time in investor behavior. Long-term Bitcoin holders (LTH, those who’ve held BTC for over 155 days) began accumulating again after the recent local peak.
In contrast, short-term holders (STH) are selling off. This divergence often signals the early stage of a re-accumulation phase and hints at a future price rebound.
Bitcoin Long Term Holder Net Position Change. Source: CryptoQuant.
“Why This Divergence Matters? LTH behavior is generally associated with macro conviction, not speculative moves. STH activity is often emotional and reactive, driven by price volatility and fear. When LTH accumulation meets STH capitulation, it tends to signal early stages of a re-accumulation phase,” IT Tech, an analyst at CryptoQuant, predicted.
Altcoin Recovery Round the Corner
Divergence signals also appeared for altcoins, indicating a positive short-term outlook.
Jamie Coutts, Chief Crypto Analyst at Realvision, pointed to a key divergence using the “365-day new lows” indicator. This metric tracks how many altcoins hit their lowest point in the past year.
In April 2025, although altcoin market capitalization dropped to a new low, the number of altcoins hitting new 365-day lows decreased significantly. Historically, this pattern often precedes a recovery in altcoin market caps.
“Divergence shows downside momentum was exhausted,” Jamie Coutts said.
In simpler terms, fewer altcoins hitting rock bottom means less panic-selling. It suggests that negative market sentiment is weakening. At the same time, rising prices show renewed buying interest. These factors hint that altcoins may be gearing up for a recovery—or even an “altcoin season,” a period when altcoins outperform Bitcoin.
Another technical divergence comes from the RSI (Relative Strength Index) on the Bitcoin Dominance chart (BTC.D), noted by analyst Merlijn The Trader. This chart reflects Bitcoin’s share of the total crypto market capitalization.
“Bearish Divergence Spotted on BTC.D. Higher highs on the chart. Lower highs on RSI. This setup doesn’t lie. Altcoin strength is brewing. Watch for trade setups,” Merlijn said.
This pure technical divergence suggests that BTC.D might soon undergo a strong correction. If that happens, investors may shift more capital into altcoins.
The altcoin market cap (TOTAL3) rebounded by 20% in April, from $660 billion to over $800 billion. The divergence signals discussed above suggest that this recovery could continue.
The US Dollar Index (DXY) has dropped to a three-year low amid reports that President Donald Trump is considering removing Federal Reserve Chairman Jerome Powell.
Meanwhile, the development positively affected Bitcoin’s (BTC) price, pushing it to its highest level since President Trump’s Liberation Day.
Trump’s Push Against Powell Adds Pressure on the Dollar
According to the latest data, DXY has plunged below 99. At press time, it stood at 98.2, representing the lowest value since March 2022.
Economist Peter Schiff highlighted the severity of the situation in the latest post on X (formerly Twitter).
“Gold is up over $50, hitting a record high of $3,380. The euro is above $1.15. The dollar has also fallen below 141 Japanese yen and .81 Swiss francs (a new 14-year low, just 3% above a record low). The dollar Index is below 98.5, a new three-year low. This is getting serious,” Schiff posted.
The dollar’s steep fall comes amid the latest comments made by National Economic Council Director Kevin Hassett on Friday, April 18. Hassett revealed that Trump and his team are actively exploring the possibility of ousting Powell.
His statement was in response to a reporter’s question about whether removing Powell was an option.
“The president and his team will continue to study that matter,” Hassett replied.
In addition, he called out the Federal Reserve for politically motivated actions under Powell’s leadership. Specifically, Hassett criticized the Fed for raising interest rates shortly after Trump’s election and cutting them ahead of the election, moves he claims favored the Democratic Party.
Recently, Trump also blamed the Fed Chair for being slow to act on interest rate cuts. In a post on social media, Trump compared Powell’s actions unfavorably to the European Central Bank (ECB), which is set to implement its seventh interest rate cut.
Trump argued that Powell, whom he described as “always too late and wrong,” should have taken similar measures long ago to address economic conditions.
“Powell’s termination cannot come fast enough!” the President wrote.
The Fed Chair’s potential removal raises serious questions about the Federal Reserve’s independence and its implications for global markets. Powell, whose term as chair extends to May 2026, has previously stated that legal protections prevent his removal and that he intends to serve out his term.
Will Dollar Weakness Drive Bitcoin to New Heights?
Nonetheless, it’s worth noting that if Powell is removed and President Trump successfully persuades the Federal Reserve to cut interest rates, it could likely lead to a crypto market rally. Generally, when the Fed lowers interest rates, the US dollar tends to weaken.
Therefore, investors prefer cryptocurrencies, especially Bitcoin, which is often seen as a hedge against inflation and the weakening of fiat currencies. The inverse relation between the DXY and BTC further solidifies the case for a rally if the dollar depreciates.
At the time of writing, BTC was trading at $87,586. BeInCrypto data showed that this represented an appreciation of 3.5% over the past day. As markets celebrate these gains, the focus remains on Trump’s next moves and their broader economic consequences.
