Crypto Firms Cut 3,000 Jobs
It’s been a tough month for crypto employees, with at least 14 firms announcing staff cuts in January.
Cryptocurrency companies tightened their wallets in 2023. Also, at least 2,900 crypto staff left 14 crypto firms in January.
The latest company to begin layoffs is crypto infrastructure provider Prime Trust. The firm has reportedly cut a third of its workforce.
The cuts equate to 100 staff cuts, as Prime had 312 employees on LinkedIn at the time of writing. The biggest layoff of the month for January was at crypto exchange Coinbase. It significantly reduced its headcount by around 1,000 on January 10.
Crypto.com, Luno, and Huobi also had notable cuts of roughly 500, 350, and 320 employees, respectively.
Rounding out the list were 200 employees laid off by crypto bank Silvergate, 120 employees cut from the Blockchain.com exchange, and 96 employees from MetaMask’s parent company ConsenSys.
Meanwhile, unsurprisingly 20 employees have been laid off from the non-fungible token (NFT) marketplace SuperRare.
Surprisingly, it is worth noting that this staff reduction came despite Bitcoin (BTC) performing solidly for the month, targeting near $25,000 as institutional demand continues to increase.
However, large-scale crypto industry layoffs were not appropriate. If we look at the statistics in January alone, about 50,000 people were laid off from just four companies: Google, Amazon, Microsoft, and Salesforce.
Big Investors For Bitcoin Will Be Wading Into The Crypto Waters Again Soon.
Digital asset investment products, often favored by institutional investors, saw inflows of more than $119 million last week. This was arguably the biggest weekly increase since last July, based on the statistics.
Market watchers said stocks, another relatively risky asset class, would largely boost bitcoin prices in the week ahead, particularly the performance of interest-rate-sensitive tech stocks.
Bitcoin’s correlation with the Nasdaq is 0.95, the highest since May 2022.