Venture capital heavyweight Andreessen Horowitz (a16z) has launched a $2.2 billion crypto fund, doubling down on blockchain startups amid a surge in venture capital into artificial intelligence.

The new vehicle, called “Crypto Fund 5,” will invest in crypto entrepreneurs at all stages, with capital deployed over a decade, according to a company spokesperson. The firm said it is targeting founders building practical applications on crypto infrastructure, especially in areas like payments, financial services and decentralized systems.

The firm’s partners see the current crypto market as an opportunity to invest in founders building projects that are “durable” and lasting even when the hype cycle dies down.

“We’re at one of those quieter moments now. And the signal coming through is one of the most encouraging it has been in years,” according to a blog by the firm’s partners, published on Tuesday.

“The founders we’re backing with this $2.2 billion fund are working on the part of the cycle that gets less attention and produces more of the lasting value: turning new infrastructure into products people use every day,” according to the blog.

What the fund is investing in

The fund will focus on sectors where these capabilities translate into tangible and lasting products.

One of the areas where a16z is seeing that pattern is stablecoins. The digital dollar market, which recently surged to $320 billion in market cap, has seen its adoption continue to grow through downturns, with users relying on it for cross-border payments, savings, and everyday transactions. This is particularly true when compared to legacy systems, which are “slow, expensive, and unreliable,” a16z said.

Other areas that are seeing “meaningful growth” include perpetual futures, blockchain-based lending, prediction markets and tokenized assets.

The new fund is launching at a time when venture capital firms are recalibrating their strategies amid an AI funding boom. Recent industry trends show generalist investors shifting capital toward AI startups, forcing crypto-focused funds to sharpen their positioning.

And this is where a16z is seeing the use of crypto’s role as a financial and coordination layer for AI systems, more important than ever.

“Software is getting more complex and harder to trust. AI systems are powerful and largely opaque. The infrastructure the internet runs on is more consolidated than ever. In that environment, the properties that crypto networks were designed to provide become more valuable, not less,” the blog said.

While the new fund is almost half the size of its fourth fund, which raised $4.5 billion in 2023, it’s still larger than the recent $1 billion raised by Huan Ventures (founded by a former a16z partner) and $650 million raised by another prominent crypto VC firm, Dragonfly Capital.

These recent raises are likely signs that, while sentiment is not running as high as it did in the 2021 bull market, there is a gap between the hype and underlying activity.

“We believe while sentiment may be low, the fundamentals of the crypto industry are at an all-time high,” according to the spokesperson.

Key Highlights

• The cryptocurrency exchange is eliminating 700 positions, representing a 14% workforce reduction
• Chief Executive Brian Armstrong attributed the decision to cryptocurrency market turbulence and artificial intelligence transformation
• Shares of COIN gained more than 4% during premarket hours Tuesday
• The company projects restructuring expenses between $50M and $60M, affecting second-quarter results
• First-quarter financial results are scheduled for Thursday, with projections showing adjusted EBITDA declining 50% from last year

Shares of Coinbase (COIN) advanced more than 4% during Tuesday’s premarket session following the cryptocurrency platform’s disclosure that it would eliminate approximately 700 positions, representing roughly 14% of its total employee base.

Coinbase Global, Inc., COIN

The digital asset exchange stated that these workforce reductions are intended to control operational costs amid prevailing market dynamics and to position the organization for what executives describe as the “artificial intelligence age.”

Chief Executive Brian Armstrong communicated the announcement through a memorandum published on X, characterizing the decision as essential to maintaining Coinbase’s competitive position during challenging cryptocurrency market conditions.

“We find ourselves navigating a declining market environment and must recalibrate our expense framework immediately to ensure we exit this phase more streamlined, agile, and productive,” Armstrong stated.

He identified two primary catalysts behind the restructuring: deteriorating cryptocurrency market conditions and the transformative impact of artificial intelligence on business operations.

COIN has declined approximately 10% year-to-date, pressured by a wider cryptocurrency market downturn that has erased roughly $1.6 trillion in aggregate market capitalization throughout the year.

Armstrong emphasized that Coinbase remains committed to the cryptocurrency sector. He highlighted stablecoins, prediction markets, and asset tokenization as critical catalysts for the “subsequent adoption cycle.”

Financial Impact and Upcoming Earnings

The organization anticipates total restructuring-related charges ranging from $50 million to $60 million, predominantly attributed to employee severance packages and termination benefits. Coinbase plans to recognize these expenses entirely during the second quarter.

Coinbase is scheduled to release first-quarter financial results on Thursday. Wall Street analysts polled by Bloomberg anticipate adjusted EBITDA will drop 50% year-over-year.

Armstrong additionally revealed plans to streamline the company’s organizational hierarchy, limiting management levels to a maximum of five tiers between executive leadership and the approximately 4,300 remaining employees.

History of Workforce Adjustments

This marks another instance of Coinbase reducing headcount during market downturns. The platform implemented substantial workforce reductions throughout the 2022 cryptocurrency market collapse.

The current announcement reflects broader trends throughout the technology sector. Companies including Block, Pinterest, CrowdStrike, and Chegg have recently announced workforce reductions, with multiple organizations referencing artificial intelligence as a contributing factor.

Armstrong emphasized that the objective centers on transforming Coinbase into a more efficient, AI-focused enterprise rather than retreating from cryptocurrency markets. “We must recapture the velocity and concentration of our entrepreneurial origins, with artificial intelligence as our foundation,” he remarked.

At the May 4 market close, COIN traded at $202.99, representing a 6.14% daily gain.

Standard Chartered PLC’s (STAN) venture capital division SC Ventures invested in GSR, as the London-based multinational bank seeks to further expand its digital asset services, the crypto capital market’s firm announced Tuesday.

The investment agreement, which according to Bloomberg was $150 million at a valuation of more than $1 billion, is the first external stake into the crypto capital markets and liquidity partner firm since its founding in 2013 by former Goldman Sachs traders.

GSR and SC Ventures did not immediately respond to a CoinDesk request for comment.

In its statement, GSR said the deal is part of a broader partnership to bridge traditional finance and digital assets, and to expand access to tokenization.

“Institutional digital asset markets are maturing rapidly, and the firms best positioned to lead will be those that combine deep capital markets expertise with trusted banking infrastructure,” said Xin Son, CEO at GSR.

SC Ventures and GSR plan to develop scalable market infrastructure in light of increasing institutional demand for regulated crypto services.

“The next phase of the digital asset evolution will be defined by the strength of infrastructure,” said Alex Manson, CEO at SC Ventures.

Standard Chartered has recently made financial investments aimed at expanding its digital asset footprint. In January 2025, it launched its own digital asset custody services out of Luxembourg and introduced crypto trading for institutional clients last summer, becoming one of the first global banks to offer spot bitcoin and ether trading. Standard Chartered was recently reportedly seeking to fully acquire Zodia Custody Ltd.

In March, GSR, which claims to have over 300 liquidity partners and over $1 trillion traded since its inception, announced the $57 million acquisition of Autonomous and Architech, a move aimed at significantly expanding the firm’s tokenization services division.

• BNB price is looking to defend $620 amid Bitcoin’s retreat from $81,000 highs.
• Supply dynamics highlight $570 as potential support.
• Upside catalysts could include BNB Chain ecosystem strengths and capital inflows.

BNB hovers near a key support area as bulls defend gains following retreat below the $630 level, with cautious sentiment prevailing as weak momentum shows across altcoins.

The Binance Coin’s price thus remains under pressure amid overall caution in risk appetite. But what could trigger renewed momentum?

BNB price sees slight retreat to support

BNB’s price hovered around $627 at the time of writing, as largely flat action in the past 24 hours kept bulls off intraday highs of $638 reached on Monday.

This pullback aligns with Bitcoin’s partial unwind from its recent spike above $81,000, where the leading cryptocurrency briefly tested resistance before cooling off.

Despite shedding gains to under $630, traders note that BNB has successfully held the zone as critical support.

A key factor supporting this resilience is the BNB Foundation’s recent 35th quarterly token burn, which eliminated over 1.56 million BNB tokens worth roughly $1.02 billion at the time.

This deflationary mechanism has trimmed the total BNB supply to about 134.7 million, enhancing scarcity and providing a floor against downside pressure.

Meanwhile, on-chain data reveals trading with reduced volume.

This comes as long-term holders accumulate amid the consolidation. Per CoinMarketCap, daily volume was down 9% to $1.74 billion.

Leverage ‘still adjusting’

BNB has traded in a more subdued manner since plummeting to $570 in early April, with the level key as the main support from the bloodbath in February.

Year-to-date declines have erased substantial gains.

The downturn wiped most of the explosive pump to $1,376 highs in October 2025, which occurred amid elevated leverage across the Binance ecosystem.

CoinGlass data shows that over the past 24 hours, BNB spot trading volume stood at over $109 million while BNB futures trading volume hovered around $667 million.

During this period, about $234,082 in BNB futures positions were liquidated as open interest of BNB lingered at just over $1 billion.

Analysts say the data suggest that leverage is still adjusting.

BNB price- support/resistance levels

Should prices slip below $600, analysts warn of a potential retest of deeper demand zones around $550-$570, where institutional reloads could materialize.

This negative outlook might strengthen if oil prices remain above $110 a barrel, with de-risking likely to explode if the global economy suffers amid rising inflation.

Conversely, upside potential remains. However, it could hinge on multiple catalysts.

Broader market conditions, such as sustained Bitcoin strength above $80,000, could propel BNB toward the $650-$670 resistance.

Network developments, including tokenization traction and scalability upgrades, could also act as tailwinds. A similar sentiment is likely amid fresh capital inflows as geopolitical tensions ease.

Expectations around U.S. monetary policy are shifting, but bitcoin BTC$80,592.79 appears increasingly indifferent. The cryptocurrency has pushed past the $80,000 mark, signaling that macro headwinds tied to interest rates may be losing their grip on price action.

A growing number of major brokerages now expect the Federal Reserve to hold rates steady through the year, a marked change from the earlier expectations of at least two rate cuts. Barclays joined peers in scrapping its earlier forecast for a rate cut on Monday, pointing to persistently high energy prices linked to geopolitical tensions involving Iran as an inflationary development. Other global firms, including JPMorgan, have similarly pushed back against expectations of policy easing.

Under normal circumstances, a higher-for-longer rate outlook would weigh on risk assets. Still, BTC continues to gain ground. Some analysts argue the asset is increasingly being treated as a hedge against inflation, supported by continued inflows into spot ETFs even as inflation fears mount. Others remain skeptical, attributing the rally more to strength in equities than to any structural shift in crypto demand.

For now, momentum appears to favor the bulls.

“From a market structure standpoint, we are seeing traders closely watch the $81,500 resistance level, while the CME futures gap around $84,000 remains a key zone for potential upside. These technical levels, combined with macro developments, will likely guide near-term price action,” said Ashish Singhal, co-founder of the FIU-registered CoinSwitch exchange.

Technical indicators reinforce that view. The 200-day simple moving average (SMA), which is often seen as a dividing line between longer-term bearish and bullish trends, is located near $83,430. So, a decisive move above it could strengthen the case for further upside.

The broader market is also showing signs of selective strength. Bitcoin’s roughly 2% gain to around $80,700 has been accompanied by outsized moves in certain altcoins. Toncoin (TON) has surged about 35%, while MORPHO and PENGU have gained 11% and 9%, respectively. On the weaker side, Dash has slipped slightly. Larger tokens such as ether, XRP, and solana have largely tracked bitcoin’s modest advance.

At the same time, sentiment is sitting at a critical juncture. The Crypto Fear and Greed Index has climbed to 50, right at the midpoint of its range, a level last seen in mid-January.

“The market is approaching a significant turning point. Since last October, there have been only brief surges in sentiment to higher levels, but these have provided excellent opportunities for bears to sell at higher prices,” said Alex Kuptsikevich, chief market analyst at FxPro. Stay alert!

Read more: For analysis of today’s activity in altcoins and derivatives, see Crypto Markets Today . For a comprehensive list of events this week, see CoinDesk’s “Crypto Week Ahead.”

What’s trending

Brent holds near $114 a barrel as Middle East tensions rage on (Reuters): Brent crude futures eased 93 ​cents, or 0.8%, to $113.51 per barrel after settling up 5.8% on Monday. West Texas Intermediate crude fell $2.16, or 2%, to $104.26, after gaining 4.4% in the ⁠previous session.

Maersk says ship passed through Strait of Hormuz under U.S. military protection (CNBC): Maersk said one of its commercial vessels, stranded at sea since the start of the war on Feb. 28, successfully transited through the strategically vital Strait of Hormuz under U.S. military protection.

‘A deal is a deal’: Von der Leyen hits back at Trump’s latest tariff threat (euronews): The European Union is “prepared for every scenario” if Donald Trump unilaterally hikes tariffs on EU-made cars, says Ursula von der Leyen.

China steps up U.S. sanctions fight, defying blacklisting over Iranian oil (The Wall Street Journal): China escalated its fight against the U.S. over Iranian oil, defying American sanctions in a show of resistance ahead of President Trump’s visit to Beijing planned for next week.

Today’s signal

After a sharp sell-off to nearly $60,000 earlier this year, bitcoin has steadily climbed back above $80,000 within a well-defined, textbook rising channel, marked by a consistent pattern of higher lows and higher highs.

Prices are now pushing against the upper boundary of that channel, a level that can act as short-term resistance where rallies can stall or pull back.

A decisive breakout above the upper boundary could trigger stronger momentum and potential speculative frenzy toward $100,000. However, repeated rejection at this level could send prices back toward $70,000 or lower.

In short, bulls are in control right now, with prices nearing a key technical test.

Brian Armstrong, CEO and co-founder of Coinbase, announced Tuesday on X that his company is slashing its workforce by roughly 14%, or 660 employees, citing negative market conditions and AI challenges.

“Today I’ve made the difficult decision to reduce the size of Coinbase by ~14%,” said Armstrong in an X post he said was also the email sent to all the crypto exchange’s employees. In it, he explained the “two forces” that converged in his firm’s decision to slash staff.

“While we’ve managed through that cyclicality many times before and come out stronger on the other side, we’re currently in a down market and need to adjust our cost structure now so that we emerge from this period leaner, faster, and more efficient for our next phase of growth,” said the CEO of the Nasdaq-listed company.

The second reason is AI, and how it is changing the way Coinbase operates, he said. “Over the past year, I’ve watched engineers use AI to ship in days what used to take a team weeks,” Armstrong stated, adding that “the pace of what’s possible with a small, focused team has changed dramatically, and it’s accelerating every day.”

The Coinbase CEO said that employees laid off in the U.S. will receive a minimum of 16 weeks’ base pay, plus 2 weeks of severance pay for every year they were employed by the company. He also said that those not in the U.S. would receive similar support under local law.

“Over the past 13 years, we have weathered four crypto winters, gone public, and built the most trusted platform in our industry,” he said.

A wave of crypto layoffs this year has highlighted the gap between two convenient narratives: macro headwinds and AI transformation. Algorand cut its staff by 25% in late March, citing “the uncertain global macro environment” and a broader crypto downturn. In February, Gemini Space Station (GEMI) said it would eliminate roughly 200 positions, about a quarter of its staff, a figure that had grown to 30% by mid-March. On Thursday, Crypto.com said it is trimming 12% of its workforce, about 180 roles.

All but Algorand pointed directly to macro conditions, weak token prices and a pivot toward greater use of AI in the workflow.