The post An Ominous Sign – Crypto Lay-offs Are Growing appeared on BitcoinEthereumNews.com.

Several major U.S. crypto firms have announced layoffs this week, hinting that challenges in the industry may be growing The American crypto industry had reason for optimism, with Bitcoin’s price nearly reaching an all-time high, crypto ETFs hitting new milestones on Wall Street, and a presidential election next week that could boost the sector regardless of the outcome. But underneath this apparent success, it’s been one of the roughest weeks for America’s leading crypto companies. Crypto Layoffs Bite On Tuesday, Ethereum software giant Consensys announced layoffs impacting 20% of its global workforce. Just hours later, DYdX, a decentralized exchange based in New York, reduced its team by 35%. By Wednesday morning, Kraken, one of the largest crypto exchanges in the U.S., trimmed its headcount by 15%. To end the week, Coinbase posted a disappointing third quarter, with customer engagement falling short of expectations. Coinbase, a major player in cryptocurrency exchange, experienced an 18% drop in shares after releasing its third-quarter report. Source: BNC Bitcoin Liquid Index Bitcoin has performed well and is up 57% year to day. So, what’s driving this paradox between a surging Bitcoin and a struggling crypto industry? The challenges go beyond mere market fluctuations, touching on regulatory concerns and questions over the future role of crypto-native firms as traditional finance giants muscle into the space. Some have called it the most bearish bull market of all time. Although Bitcoin is rising, it’s increasingly seen as operating separately from the broader crypto market. Crypto firms like Coinbase and Kraken, which have built their businesses around direct digital asset transactions, are finding it harder to compete with Wall Street titans, whose ETFs and investment products are proving attractive to mainstream investors. For companies with strong ties to Ethereum and other cryptocurrencies, like Consensys, the situation may be even…

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Filed under: News - @ November 3, 2024 1:23 am