Bhoomika Singh
On Tuesday, the top cryptocurrency Bitcoin (BTC) fell further to around US$ 21,000 per coin, a level it last saw five years ago. As the global crypto market crashed due to a weak macroeconomic environment and systemic risk from within the crypto space, it was hovering around Rs 20,000-Rs 21,000 per bitcoin.
Bitcoin has dropped for nearly 12 weeks in a row, from nearly US$49,000 in March to around US$21,000 today. This time, Bitcoin fell after cryptocurrency lending platform Celsius announced that it was suspending all withdrawals due to “extreme market conditions.”
Not only bitcoin, but Ethereum prices fell to US$1,158 per coin, bringing the world’s second-largest digital asset back below its 2018 peak.
As we look at the aftereffects of the Cryptocrash, trading and lending exchanges BlockFi and crypto.com have laid off hundreds of employees after the global crypto market was battered due to a “dramatic shift” in macroeconomic conditions.
According to sources, BlockFi CEO Zac Prince stated that the company is reducing headcount by approximately 20 per cent, which will affect every team at the company. This 20 per cent workforce reduction will result in the layoff of 170 to 200 people from its 850-person workforce.
The macroeconomic environment has shifted dramatically since Q1 2022, causing a significant pullback in equity and cryptocurrency markets.
Earlier, crypto.com announced it’s laying off around 260 employees, or nearly 5 per cent of its workforce. “The markets will turn, and when they do, you can be sure that we will be ready to drive and capture the next wave of growth for cryptocurrency adoption,” said crypto.com CEO Marszalek.
Similarly, Coinbase announced slow hiring and reportedly rescinded over 300 job offers. The crypto distress doesn’t stop here, as analysts predict that Bitcoin may hit a grim US$14,000 this year at this rate.
Analysing the situation, VentureFounder, a Twitter account and contributor to on-chain analytics platform CryptoQuant tweeted, “In the next 670 days, BTC will capitulate in the next six months and hit cycle bottom ($14-21k), then chop around $28-40k in most of 2023 and be at $40k again by next halving,”
