The wave of layoffs hits the US, and recession expectations rise: How will Bitcoin and cryptocurrencies perform?

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January 29 News, the US labor market is signaling a clear slowdown. Major companies such as Amazon, Pinterest, UPS, and Nike have announced layoffs one after another, with Amazon alone cutting approximately 16,000 jobs in January 2026. Data shows that US employers have reduced about 1.2 million positions over the past year, marking the highest layoffs since the pandemic, and the recession outlook has quickly intensified.

According to Global Markets Investor forecasts, US layoffs are expected to surge by 58% year-over-year in 2025, making it one of the most severe years since the 2008 financial crisis. The average job search duration for unemployed individuals has extended to about 11 weeks, the longest since 2021. Meanwhile, the probability of finding a new job has dropped to 43.1%, further weakening market confidence. Creative Planning strategist Charlie Bilello pointed out that in the past three months, the US has seen an average monthly reduction of 22,000 jobs, and similar historical situations have almost always been accompanied by recessions. Swissblock Chief Macroeconomist Henrik Zeberg also warned that the US economy is accelerating its descent into a downturn.

Macroeconomic pressures have begun to impact asset allocation. Funds are increasingly flowing into traditional safe-haven assets such as precious metals, while Bitcoin and other digital assets are under pressure and fluctuating. The weak employment environment indicates slowing income and consumption growth, which typically suppresses demand for high-volatility assets, making it difficult for the crypto market to sustain a rebound in the short term.

However, some believe that if the economy continues to weaken, expectations of monetary easing will gradually rise, and rate cuts along with liquidity releases could create new support for cryptocurrencies in the medium to long term. Once risk appetite recovers, Bitcoin may once again become an important choice for funds to re-enter risk markets.

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