The entire cryptocurrency market landscape looked very different a year ago, during which prices were skyrocketing, and fresh all-time highs (ATHs) were frequently being made.
The so-called crypto winter is currently operating at full capacity due to several adverse macroeconomic factors and a slew of notable industry bankruptcies, like Terra and FTX.
A change in investor sentiment can be inferred from several data, including falling trade volumes and Google searches, which were likely predictable. The crypto exchange market is one of the segments suffering the most from these debilitating "winter" chills.
Crypto Winter Taking Its Toll
Because the crypto winter does not appear to be ending any time soon, the staff of the controlled cryptocurrency exchange Bybit has been given their walking papers. The decision comes after the corporation reduced its Workforce in June of this year.
Ben Zhou, the CEO of Bybit, asserted on Sunday that job cuts are a portion of the ongoing restructuring of the cryptocurrency exchange firm based in Singapore, stating that the main priority of the business is to keep the business running smoothly as well as secure client monies.
The fact that Bitcoin could not break the $18,000 barrier illustrates that the crypto winter is still in the minds of the general public, which is harmful to local businesses. The cryptocurrency markets have managed a small increase of 1.5 percent over the past 24 hours. Despite this, the overall outlook continues to be quite negative.
Consequently, cryptocurrency miners and exchanges were subject to a disproportionate amount of market volatility. Bybit is the latest casualty to follow the pattern of trading platforms, resulting in many of those platforms' employees losing their jobs.
Zhou has expressed his regrets to everyone who may be adversely affected by this decision and clarified that it was necessary to take this action to make it through the crypto winter.
Cascading Effect?
Bloomberg cited Zhou as saying (1) in a report that the cryptocurrency exchange must have the proper structure and resources "to navigate the market downturn and is nimble enough to seize the many opportunities ahead."
Zhou further stated,
"that we are entering an even colder winter than anticipated from both an industry and market standpoint." based on the persistent fall of cryptocurrency prices and the difficulties experienced by organizations such as the bankrupt cryptocurrency lender BlockFi and the troubled cryptocurrency brokerage Genesis.
Bybit, which is placed in the top top 10 crypto exchanges both for CoinMarketCap and CoinGecko in terms of volume as well as trust in the stated volumes, isn't the first bitcoin exchange to take such stringent safety measures.
Both CryptoCom & Coinbase were the first companies to do so; according to some estimates, CryptoCom terminated the employment of several hundred of its staff members. Coinbase, an American multinational company, reduced its Workforce by 18% in the month of June.
