Bitcoin (BTC) has dropped 7.6% since it almost — but not quite — touched the psychological wall of $100,000 on Nov. 22.

That’s the biggest drop since Donald Trump won the U.S. presidential election, sparking a rally that sent the largest cryptocurrency by market capitalization soaring from a level of around $66,000 through its record high.

Even so, the slide isn’t out of the ordinary. In bull markets bitcoin typically tumbles as much as 20% or even 30%, so-called corrections that tend to flush out leverage in an overheated market.

A large part of the reason the bitcoin price didn’t get to $100,000 was the amount of profit-taking that took place. A record dollar value of $10.5 billion of profit-taking took place on Nov. 21, according to Glassnode data, the biggest day of profit-taking ever witnessed in bitcoin.

At the root of the action are the long-term holders (LTH), a group Glassnode defines as having held their bitcoin for more than 155 days. These investors are considered “smart money” because they tend to buy when the BTC price is depressed and sell in times of greed or euphoria.

From September to November 2024, these investors have sold 549,119 BTC, or about 3.85% of their holdings. Their sales, which started in October and have accelerated since, even outweighed buying from the likes of MicroStrategy (MSTR) and the U.S. spot-listed exchange-traded funds (ETFs).

How long is this selling pressure going to last?

What’s noticeable from patterns in previous bull markets in 2017, 2021 and early 2024, is that the percentage drop gets smaller each cycle.

In 2017, the percentage drop was 25.3%, in 2021 it reached 13.4% and earlier this year it was 6.51%. It’s currently 3.85%. If this rate of decline were to continue, that would see another 1.19% drop or 163,031 BTC, which would take the cohort’s supply to 13.54 million BTC.

Each time, the long-term investors’ supply makes higher lows and higher highs, so this would also be in line with the trend.

Bitcoin (BTC) has already changed the world, and as it gains traction, its potential to reshape the job market is becoming increasingly apparent. Even though recently we saw layoffs by big companies like Consensys and Kraken, it must be due to the industry’s maturing nature where companies are not yet certain about hiring principals.

The real story is that Bitcoin and its associated technologies will drive long-term job growth and create new roles. Unlike traditional assets, Bitcoin is decentralized. So, it fosters innovation and creates jobs in software development, cybersecurity, and financial services.

Even despite the not well-regulated environment, it already attracts different professionals. By this, Bitcoin boosts local economies and increases tax revenues, so not only people benefit but governments as well.

A new frontier for jobs—but not without growing pains

To start with, Bitcoin was the first-ever cryptocurrency. It came as a novelty that wasn’t accepted right away. However, later on, as people were getting more into it, more companies started launching their crypto tokens. To do this, they, of course, needed people who had already gained certain knowledge about Bitcoin.

It’s been 16 years since its invention, and crypto is no longer an unexplored phenomenon. Little by little, it becomes an integral part of our lives—the future is digital, as they say. From blockchain development and data security to market analysis and customer support, the skill sets needed in the crypto industry are expanding.

However, the industry is not fully mature, so there are no set hiring standards yet. At first, companies rushed to hire employees, anticipating the massive growth they predicted. But this has sometimes led to overhiring as companies face difficulty estimating the precise number of employees needed.

So, this boom in hiring has recently faced setbacks. Major players in the crypto industry, such as Consensys, Kraken, and dYdX, have all laid off significant portions of their workforces in recent weeks. They let go of 20%, 15%, and 35% of their employees, respectively. However, it only shows that the crypto industry as a whole is still defining its optimal workforce size.

A closer look at the layoffs reveals a more nuanced reality. Crypto companies are rather re-strategizing—they are shifting to smaller company types. Why? Because they think that companies with fewer but highly specialized employees who use web3 tools and AI function more efficiently.

In this sense, Bitcoin and its associated technologies are not just creating traditional roles but are increasing the demand for a workforce with cross-functional and adaptable skill sets. Companies need more and more roles that can be dynamic and evolve along with the industry.

Also, the volatility of the crypto market means that hiring trends tend to rise and fall depending on the Bitcoin prices and overall market sentiment: During bullish periods, companies have higher profits and often expand their workforce. In contrast, bear markets, regulatory challenges, and internal restructurings can lead to workforce reductions. This is what we see with the recent layoffs.

The bigger picture: long-term growth despite setbacks

The picture of crypto industry employment trends is much wider than it might be seen at first sight. Despite the recent flow of layoffs, crypto-related jobs still seem attractive to the masses—demand for crypto-related roles continues to rise.

The supply also remains in a positive trend. The biggest increase in positions is tracked in blockchain development and product management. There is also a need for individuals skilled in, for example, decentralized finance, digital asset custody, or blockchain law. And it is very interesting, as such a tendency represents the diversity and growth of the job market around Bitcoin.

To provide the future workforce, the introduction of educational programs and certifications in crypto and blockchain prepare new generations for work in this new economy. Education around crypto has become more common, so job seekers have become better equipped with the skills necessary for roles in this sector. This, in turn, reduces the need for companies to hire large teams.

Adapting to the sector

Since the market hasn’t reached its full maturity, there will be a need for adaptability. Many of the roles in the crypto industry didn’t exist a decade ago, and even more new roles will continue to emerge. Some professionals might find themselves in positions that didn’t exist when they entered the job market.

Continuous education and upskilling are essential as never before. The Bitcoin job market requires a mix of technical expertise and regulatory understanding. Companies are definitely going to experiment with different business models and will have to navigate regulatory challenges. To do all these, they will need employees who can adjust quickly to changes and operate efficiently.

Arthur Azizov

Arthur Azizov is the CEO of B2BINPAY, an all-in-one crypto ecosystem for businesses. A thought leader and visionary with a global view, he launched his first business, a payment terminal company, in 2007, boasting over 15 years of practical entrepreneurial experience since then. Before B2BINPAY, he founded and scaled an international broker company, B2Broker Group, with over 450 employees and a $70M valuation.

Ripple CLO Stuart Alderoty slammed the U.S. Securities and Exchange Commission (SEC) for bragging about enforcement actions and raising record fines. Stuart Alderoty has challenged the bragging rights of the US SEC, highlighting the flawed approach the government agency has taken in lawsuits.

Ripple CLO Slams US SEC For Boasting About Fines Collection

Ripple CLO Stuart Alderoty reacted to the U.S. Securities and Exchange Commission’s (SEC) post on X about collecting record fines in the history of the agency.

Alderoty lambasted the US SEC for bragging about record fines collection. He compared it with a professor boasting about their highest-ever class failure rate and the most cheating scandals.

Furthermore, he added that the SEC’s oversight has gone wrong, driven by perverse incentives. Notably, the agency has also failed to provide clarity to the crypto community about rules and regulations. “It’s not a measure of success,” he added.

“We announced that the SEC filed 583 total enforcement actions in fiscal year 2024 while obtaining orders for $8.2 billion in financial remedies, the highest amount in SEC history, said the US SEC.

The government agency also boasted about the success of the Division of Enforcement under SEC Chair Gary Gensler. It claims the enforcement division has helped promote the integrity of capital markets to benefit investors.

However, investors claimed the agency has harmed investors more and Gary Gensler is the least effective SEC Chairman in American history.

$4.5 Billion budget. $8.2 billion fines. $1 Trillion damage to capital markets. Solid taxpayer ROI.

— Gabor Gurbacs (@gaborgurbacs) November 26, 2024

Ripple Launches Tokenized Money Market Fund

Ripple has introduced its first tokenized money market fund in partnership with UK-based asset manager abrdn and crypto exchange Archax. The fund, available on the XRP Ledger (XRPL), aims to enhance financial accessibility and liquidity.

Meanwhile, XRP futures open interest surpassed $2.50 billion, signaling growing trader activity. Whale accumulation also continues, with over 250 million XRP purchased during recent price dips. This has fueled speculation of a rally toward $20 as XRP shows strong market demand.

Currently, XRP price trades at $1.33, down 10% in the last 24 hours. Its market cap stands at $75 billion, with $10 billion in trading volume.

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Varinder Singh

Varinder has over 10 years of experience in the Fintech sector, with over 5 years dedicated to blockchain, crypto, and Web3 developments. Being a technology enthusiast and analytical thinker, he has shared his knowledge of disruptive technologies in over 5000+ news, articles, and papers. With CoinGape Media, Varinder believes in the huge potential of these innovative future technologies. He is currently leading the news team to cover latest updates and developments in the crypto industry.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.