Despite Bitcoin surpassing $100,000 in the 2025 bull market, crypto venture capital (VC) firms are experiencing a downturn. Firms like ABCDE have halted fundraising efforts, and primary market investments have significantly decreased. VCs, once seen as trendsetters, now find themselves at the ecosystem's periphery, struggling with profitability and capital acquisition. Market makers and key opinion leaders (KOLs) are capturing opportunities, leaving VCs with diminished bargaining power. In response, some VCs are pivoting towards AI investments, secondary markets, or structured funds, while others are transforming into service providers. New limited partners (LPs) prioritize compliance and cash flow, rendering traditional narratives ineffective. To overcome these challenges, crypto VCs must redefine their roles, enhance research capabilities, and support projects with real revenue, evolving into a new breed of crypto investment banks that combine investment and empowerment capabilities.