Venture capital investment in the cryptocurrency space slumped in the third quarter before U.S. President-elect Donald Trump's election boom revived industry sentiment, according to Bloomberg. Cryptocurrency startups attracted $1.70 billion in investment in the three months ended Sept. 30, down 31.3 percent from the previous quarter, according to PitchBook data. The number of deals struck fell 25.3 percent to 392. "We believe this correction is a natural and necessary component of a healthy cryptocurrency market," Robert Le, senior analyst at PitchBook, wrote in the report. Le attributed the decline in cryptocurrency venture capital trading to macroeconomic factors, including heightened market volatility and fears of a U.S. recession. As in the previous quarter, infrastructure projects such as new blockchains continued to gain traction among venture capitalists in the third quarter. Le said he expects further consolidation between cryptocurrency exchanges, custodians, and infrastructure companies in the future.