🚨 U.S. Layoffs Flash Recession Warning — Here’s Why $BTC Dumped to $63K 📉

U.S. employers announced 108,435 job cuts in January 2026, according to Challenger data — a 118% spike vs January 2025 and a 205% surge from December.

📉 This marks the worst January for layoffs since 2009, during the Global Financial Crisis.

⚠️ Why This Matters for Crypto

Crypto didn’t crash because of layoffs directly — it crashed because of what layoffs signal.

When job cuts surge, markets start pricing in:

❌ Slowing economic growth

❌ Falling liquidity

❌ Rising recession risk

❌ Risk-off investor behavior

Cryptocurrencies are high-risk assets, and in risk-off environments, capital exits first.

📊 Market Reaction

As recession fears spread across Wall Street:

Bitcoin ($BTC) dumped to ~$63,000

Ethereum ($ETH) slid to ~$1,842

Equities and crypto sold off together

🧠 The Big Picture

Layoffs don’t move crypto by themselves.

They reshape sentiment, liquidity, and monetary policy expectations — and that is what drives price.

📌 Short-term pain = macro-driven volatility
📌 Long-term trend = still policy & liquidity dependent

Markets don’t crash on fear — they crash when fear meets tightening liquidity.
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