Could Labor Market Shock Overtake Inflation as Bitcoin’s Next Macro?
The post Could Labor Market Shock Overtake Inflation as Bitcoin’s Next Macro? appeared on BitcoinEthereumNews.com.
A fresh wave of layoffs is sweeping across industries in 2025, signaling that the labor market may enter its most turbulent phase since the pandemic-era downturn. This adds to the list of US macroeconomic indicators with crypto implications. Job cuts are no longer isolated to tech giants or government agencies, and the real economy is flashing red. Equity markets are also treading water, and crypto investors are clinging to rate cut hopes. Crypto Eyes Labor Market as Layoffs Spike 80% in 2025—Is Inflation No Longer the Main Threat? Employment and jobs data are progressively gaining influence as one of the US economic indicators with crypto implications. The layoff wave that rattled markets in 2022–2023 is making a sharp return in 2025. Reportedly, US-based companies announced more job cuts in the first five months of 2025 than in any equivalent period over the past four years. “Tariffs, funding cuts, consumer spending, and overall economic pessimism are putting intense pressure on companies’ workforces. Companies are spending less, slowing hiring, and sending layoff notices,” wrote Forex Analytix, citing Andrew Challenger, Senior Vice President of Challenger, Gray & Christmas. Data also shows deterioration in the US labor market. According to Challenger, Gray & Christmas, May 2025 job cuts are up 47% over the same month last year. Year-to-date (YTD) cuts are also up 80% over 2024. “Cuts are spreading to other sectors than Government, for other reasons than budget cuts and Dogecoin crashes,” the outplacement firm noted. Challenger Job Cuts January to May 2018 to 2025. Source: Challenger, Gray & Christmas Andrew Challenger, Senior Vice President at the firm, offered a blunt assessment. He noted that Trump’s tariffs, funding cuts, consumer spending, and overall economic pessimism put intense pressure on companies’ workforces. Thursday’s data reinforces the trend, with US initial jobless claims rising by 8,000…
Filed under: News - @ June 6, 2025 3:26 pm