The cryptocurrency market is struggling with extreme instability caused by economic and geopolitical uncertainties, including rising inflation and the effects of the war in Ukraine. The price of bitcoin, which is the best known and largest cryptocurrency by market capitalization, has dropped by almost a third.
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Bitcoin traded at CZK 476,520 on Wednesday morning, and the exchange rate rose to CZK 498,640 in the afternoon. A week ago, however, the value of the most famous cryptocurrency in the world was CZK 700,360, at the end of March it was CZK 1,054,470.
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“We are entering a recession after more than a decade of economic prosperity. The recession could cause another cryptocurrency winter and could last longer, ”Armstrong said.
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“In the case of a pessimistic development, we can expect a move up to around $ 12,000 (CZK 283,030), where there is a significant consolidation area with the potential to end corrective effects and reverse the trend. The further development on the American stock markets will play an important role here, as bitcoin strongly correlates with the development of especially technological stock titles, “added Martin Kysela, an analyst from the Trhy.cz portal.
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The company did not provide any further details on which departments would be affected by the redundancies. Armstrong only said that employees would receive an e-mail from the human resources department informing them if the redundancies affected them.
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5000 employees will remain
According to Coinbas, the total cost of the restructuring should be between 40 and 45 million USD and will largely be related to the severance pay for employees. The restructuring is largely expected to be completed in the second quarter, and the company is expected to have a total of about 5,000 employees at the end of June.
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Last month, the company said its total revenues for the first three months of this year had fallen 35 percent to $ 1.17 billion. They fell short of analysts’ expectations, Reuters reported. The number of active monthly users decreased by 19 percent, mainly due to a decrease in the value of cryptocurrencies. Cryptocurrency exchanges receive money from fees for transactions with digital currencies, but the number of transactions decreases significantly during the downturn.
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