"Frozen jobs data could actually be a tailwind for digital assets"

As signs of a slowdown in the U.S. labor market become clearer, an analysis suggests that such employment indicators could help create a supportive backdrop for digital assets such as Bitcoin (BTC).

On the 6th (Korea time), digital-asset news outlet CoinDesk, citing data from global outplacement firm Challenger, Gray & Christmas (CG&C), reported that U.S. companies’ January layoffs totaled 108,435, up 205% from the previous month. That marked the largest level in 17 years since January 2009, and was also up 118% from a year earlier.

By sector, technology (IT) accounted for the most layoffs at 22,291, with Amazon making up a significant portion of planned cuts. Logistics company UPS also announced plans to cut 31,243 jobs. Experts said the figure was unusually large even after factoring in that January is typically a seasonal lull for hiring.

Initial jobless claims released the previous day by the U.S. Department of Labor also came in above market expectations. According to the department, last week’s initial claims totaled 231,000—about 20,000 higher than Wall Street forecasts (212,000).

CoinDesk said that “as employment indicators cool, expectations are growing that the Federal Reserve could move to cut rates to support the economy,” adding that “if rate cuts materialize, inflows into high-risk assets such as Bitcoin could resume.”