News hardware Bitcoin plummets, crypto firms lay off massively
After a monumental rise in 2021, Bitcoin saw its price melt down to €21,000 this week. A fall that generates a disastrous human toll since some of the largest companies specializing in cryptos have already started to lay off massively.
The bitcoin roller coaster
It surely did not escape you, bitcoin and other cryptocurrencies have experienced a meteoric rise in the last two years.
In 2020, when the first confinement was announced, the price of Bitcoin had spat up to €4,000. A buying opportunity that proved successful for some since after this event, Bitcoin reached an all-time high of €56,000 in November 2021.
As the true leader of the entire crypto ecosystem, as with the rise of 2017, Bitcoin trumped all other cryptocurrencies in a price surge.
Following this highlighting, some have seen their capital multiplied by hundreds, creating wealth in SHIBA or DOGE…
With the rise of this capitalization, some of the crypto platforms have experienced a meteoric rise in their turnover, ranking them for some of them in the top of the biggest companies in the world. A significant activity which has been able to develop the total capitalization of cryptocurrencies, reaching 2,700 billion euros at its highest.
Thus many companies related to cryptos have been able to seize this opportunity to develop their team in order to improve their product.
But this upward correlation is also downward….
The winter of bitcoin and cryptocurrencies
The price of bitcoin, which has been falling since November 2021, is also dragging down all other cryptocurrencies.
By going from €56,000 to €21,000, it creates a significant loss of interest causing the entire capitalization of cryptocurrencies to fall.
For some, the cryptocurrency market is entering its usual bear market cycle (long-term bear market).
In view of the arrival of a bear market, many companies are already making arrangements.
Crypto winter is coming…
Massive layoffs by crypto platforms
Companies in the sector have grown a little too fast…
This is the case of BlockFi, a cryptocurrency lending and borrowing platform that has grown from 150 employees to around 850 in one year. To rebalance the balance, it announced the dismissal of 20% of its workforce to cope with the fall in the market.
But she’s not the only one…
The Crypto.com platform, which you have surely seen on the UFC organization’s jersey, has also announced the dismissal of some of its employees. The platform is trying to limit the breakage and claims that the company will reduce its workforce by 5%, around 260 people.
Followed by Coinbase, the largest cryptocurrency buying and selling platform, which announced that it would lay off 1,100 employees, or around 18% of its total workforce, starting this month.
Nevertheless, some of them intend to face the storm
This is the case of FTX, a cryptocurrency exchange platform wishing to curb recruitment in this bear market context.
A way of remembering that it is Bitcoin that decides in this market where everything is going very fast, up and down…