Bitcoin Could Bounce From 50% Crash — Here's What Record Layoffs Just Changed

Core Insights - Bitcoin surged 6% as U.S. planned layoffs tripled in January, raising hopes for Federal Reserve rate cuts to support the economy and risk assets [1][4] Group 1: Layoff Data - U.S. companies announced plans to cut 108,435 jobs in January, a 205% increase from the previous month and the highest level in 17 years [2] - Year-over-year, announced job cuts rose by 118%, indicating a significant weakening in the labor market [2] - Most layoffs are planned for the end of 2025, reflecting employer pessimism about 2026 [2] Group 2: Economic Indicators - Private reports are signaling potential cracks in the labor market, contrasting with the Bureau of Labor Statistics' resilient payrolls report [3] - Real-time inflation data from Truflation shows inflation dropping below 1%, while official CPI remains above the Fed's 2% target, suggesting weakening growth [4] Group 3: Federal Reserve Rate Cuts - Expectations for Federal Reserve rate cuts are divided, with some banks predicting at least two 25-basis-point cuts this year [5] - JPMorgan Chase expects rates to remain unchanged through 2026, with increases anticipated in 2027 [5] - An economist predicts a potential 100 basis points cut before the November midterm elections [5] Group 4: Bitcoin Price Outlook - Bitcoin is recovering from extreme oversold conditions, bouncing from support levels of $60,000-$62,000 [6] - Critical resistance levels are identified at $75,000-$80,000, which Bitcoin must overcome to regain upward momentum [6] - The Relative Strength Index (RSI) at 25.14 indicates a bounce from oversold territory, but overall momentum remains bearish [7]