Bitcoin and Ethereum correct as Bitzlato take down, tech layoffs and economic worries dominate headlines

Published at: Jan. 18, 2023

Bitcoin (BTC) price and the wider crypto market corrected as news of coordinated “international cryptocurrency enforcement action” stirred up uncertainty among traders. 

Given the number of black swan events and the proliferation of crypto-oriented scams in 2022, most investors expect United States and global regulators to eventually lay down a strong hammer on centalized exchanges and other businesses connected with the crypto sector.

At the time of writing, BTC price had dipped to an intraday low at $20,400, and Ether (ETH) gave back its daily gains to trade as low as $1,500.

As shown by the charts below, the revelation that Bitzlato had been shuttered and its founder arrested was a lighter blow than expected by the market and the daily candles reflect a bit of indecision as traders decide whether to re-enter the market.

Additional pressure on crypto assets could also be coming from a dim outlook of the U.S. and global economy in 2023 being issued by banks attending Davos and the escalating trend of big tech companies laying off staff.

Recent headlines from Cointelegraph and CNBC detail Microsoft, Amazon, and financial technology companies laying off more than 60,000 employees in the last year, and on Jan. 18, Microsoft announced another wave of layoffs to the tune of 10,000 employees.

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