On Thursday, the global outplacement company Challenger, Gray & Christmas released data that may shed light on the recent decline in bitcoin prices.
Layoffs Reach a Sobering Threshold: Nearly 1.2 Million Jobs Lost and Rising
A Chicago-based firm specializing in job transitions quietly revealed a concerning statistic that has largely escaped public attention: nearly 1.2 million American workers have been laid off so far in 2025. This number is alarming, as the last time layoffs reached such heights outside of the pandemic was during the Great Recession sixteen years ago, when approximately 1.24 million jobs were cut.
The report from Challenger, Gray & Christmas (CGC) indicated that November saw 71,321 job cuts—53% fewer than October’s staggering figure of 153,074 but still significantly higher than November 2024’s total of 57,727 layoffs. This announcement followed closely on another bleak report from Philadelphia-based HR firm ADP on Wednesday showing an unexpected loss of 32,000 private sector jobs.
However, CGC’s November numbers are just one piece of a larger picture. Economists have focused primarily on the cumulative total for January through November: an eye-opening tally of 1,170,821 job losses compared to only 761,358 during the same period last year. While experts debate various factors influencing bitcoin’s poor performance recently, it is undeniable that an economy hemorrhaging nearly one and a quarter million jobs will struggle to inspire investor confidence.
The CGC report highlights this trend as well: “Since tracking began in 1993,” it states “this marks only the sixth instance where layoffs through November have exceeded one million.” The data also notes that layoff levels remained high until around 2009 and stayed below seventy thousand per month until disrupted by pandemic-related upheavals.
Don’t Blame Artificial Intelligence
The leading cause behind these widespread cuts was attributed to government efficiency initiatives which resulted in nearly three hundred thousand federal employees losing their positions. Following closely were dismissals linked to broad market and economic conditions accounting for about two hundred fifty thousand job losses. Contrary to popular belief blaming AI for massive unemployment waves due to automation fears—AI-related layoffs accounted for fewer than fifty-five thousand cases this year alone—even when combined with technology upgrade categories this figure remains under seventy-five thousand.
The report clarifies further: “In November alone artificial intelligence caused just over six thousand job eliminations.” Since first being cited as a reason back in early-2023 AI has contributed toward roughly seventy-one thousand announced cuts nationwide.”
Market Snapshot
At reporting time Bitcoin was valued at $90,146.16, marking a daily decrease of approximately -1.57%, though it had gained close to +5.88%
during weekly trading according to Coinmarketcap figures.
The cryptocurrency fluctuated between lows near $89,068.19 and highs above $92,267.
Total daily trading volume surged by thirty-one percent within twenty-four hours reaching $57. 49 billion mainly driven by expected post-weekend activity.
Meanwhile market capitalization declined slightly settling at around $1&period79 trillion while Bitcoin dominance slipped marginally downwards by about -0&period61%, now standing at approximately sixty percent.
Total open interest across bitcoin futures barely moved upward registering less than one tenth percent increase totaling roughly $57 .95 billion according Coinglass data.
Lately liquidations dropped below hundred million dollars mark after several days reaching exactly ninety point five eight million dollars lost overall.
Bulls suffered heavier losses wiping out more than fifty three point eight three millions while shorts faced smaller liquidation amounts totaling thirty six point seven five millions respectively.
Frequently Asked Questions ⚡
Why are layoffs nearing almost one point two million so far into twenty twenty five?
An economic slowdown combined with government-mandated workforce reductions explains why layoff numbers are climbing toward levels unseen since two thousand nine.
How significant were employment cuts during november?
  Around seventy-one-thousand workers lost their jobs — less severe compared with october but considerably above previous year benchmarks..
Certain voices blame artificial intelligence—is AI responsible for most dismissals?
No,&nbps;<u>AI accounts for under fifty-five-thousand terminations which pales beside those triggered directly or indirectly by governmental policies or unfavorable economic conditions.
<StrongWhat impact might these trends exert upon bitcoin markets?
A labor environment shedding upwards close-to twelve-hundred-thousand roles fuels recession concerns potentially weighing heavily against risk assets including cryptocurrencies like bitcoin..