There is a weird disconnect out there in venture capital land, particularly in crypto. Gigantic funds get announced every week, and yet startups are being told to look for ways to extend their runways and tighten belts.

Why it matters: Money in crypto VC funds is like a runway for the whole industry.

Situational awareness: Despite their well-resourced benefactors, crypto startups tell Axios that they are expecting leaner days ahead.

Zooming out: Just this week we've learned about Andreessen Horowitz raising a new $4.5 billion crypto fund and Standard Crypto closing a $500 million fund.

Which makes all of this weird 👇

What they're saying: Joseph Kelly, CEO of bitcoin-backed lender Unchained Capital, tells Axios that his firm isn't raising funds now, but, "I can confirm that firms I've spoken with have either a) seen bitcoin or crypto deals where term sheets have been pulled and b) are prioritizing existing portfolio companies for the time being over new deal flow."

Beyond just crypto, Sequoia Capital (which has a lot of money set aside for crypto) has been advising firms that we're headed for a long downturn and that policymakers can't help this time.

The bottom line: "I can sometimes feel like I'm swimming in an ocean but dying for thirst," Leighton Cusack, creator of PoolTogether, the lottery where no one loses. (Really. It's a savings game.) "That is, I'm surrounded by lots of money, but it's hard to actually get money for a specific thing."