CRYPTO FIRMS SLASH JOBS IN BEAR TRODDEN MARKET
In a recent statement by the New York Attorney General, Letitia James forewarning individuals to desist from investing in cryptocurrency, she clearly stated via a tweet:
“The cryptocurrency market is extremely unpredictable. Just last month, the market reached record lows and investors lost hundreds of billions”.
This isn’t the first of such warnings from government authorities, non crypto believers or investors. There’s no end to it, as it keeps coming at the slightest plunge in prices of crypto. The question is why?; Volatility!
Crypto Market and Volatility
Volatility can be termed as the rate at which the price of a crypto asset moves either up or down over a period of time. In the case of Cryptocurrency, volatility is very high, as the crypto market is very sensitive to the slightest changes in market conditions. The more volatile a crypto gets, the riskier it is as a choice of investment. But on the flip side of things, this volatility has proven to be a key reason why there are more potentials for high returns or gains over a period of time in the crypto market. As compared to a less volatile market structure — now you know why many are pointing fingers.
THE BEAR MARKET
When the decline in the prices of Cryptocurrency assets is persistent over a period of time, we refer to this as a bear market. Rather than a bull market where the prices of Cryptocurrency assets are rising over a period of time. Candle sticks are green, a few dips here and there and everyone loves is happy.
Due to the continuous downtrend in the crypto space, many companies who trade crypto, Exchange, lend, borrow, mint crypto etc. are announcing job slashes for a substantial amount of work staff and freezing some ongoing Job cycles
Thursday last week, The private owned cryptocurrency exchange which allows users to trade, buy, sell and also securely store bitcoin. With services for over 40 other Cryptocurrencies, issued a 10% job cut from its workforce due to a perceived market turbulence that might last for a long time.
This development cuts across several other cryptocurrency platforms, hitting exchanges majorly.
The popular crypto exchange Coinbase reiterated its intentions to pausing hiring, with an extension of this hiring pause until market conditions are more stable.
Many analysts have come forth to say the current market situation is most likely to last till Summer. Crypto users are advised to seek opportunities to get crypto better by reflecting on what can help the Crypto space and what the future holds.
EXCHANGES| FRONT LINE OF HIT
The role of exchanges in the adoption of cryptocurrency as the future of finance cannot be overemphasized. Crypto exchanges mostly rely on tradings of tokens and coins. And with a large amount of drop in Liquidity in the system, there’s a slowdown in the rate of transactions and tradings generally.
A few of these exchanges and companies laying off staff include
•Coinbase
•Gemini
•Bitso
•Rarible
•RobinHood
•BitMex
•2TM
What’s your take on the Bear market? What must have triggered it this time around. Is recovery looking near or bleak? Share your thoughts.
