Crypto Job Postings Decline Sharply, Although Market Is Preparing For New Price Increase

Key Points:

• LinkedIn reports a 57% YoY decline in December crypto job postings, indicating a slower contraction post-November’s 71% drop.
• A recovery in coin prices boosts trading volumes, pointing towards a more optimistic outlook for both the crypto market and job opportunities.

In the wake of the recent cryptocurrency rally driven by expectations of US exchange-traded fund approval for Bitcoin, the crypto job market is exhibiting signs of stabilization, though not at the pace witnessed in the market surge.

Crypto Job Postings: Resilience Amidst Challenges

LinkedIn reports a 57% year-over-year decline in crypto job postings in December, reflecting a slowdown from the 71% drop in November. This suggests an industry in transition, navigating a period of adjustment and potential consolidation.

According to a report from job platform Indeed, crypto job postings for related positions experienced a 64.2% decrease in India, accompanied by a 15.2% drop in job searches between August 2022 and 2023. The industry underwent widespread layoffs throughout much of 2023, notably by companies like Gemini Trust and Binance.US, responding to both regulatory scrutiny and months of low trading volumes impacting revenues.

According to The Block data, venture capital investments in the crypto space witnessed a sharp 68% decline, totaling $10.7 billion in 2023 compared to the previous year’s $33.3 billion, leading to layoffs and hiring freezes in many startups. Despite the challenges, the recent surge in Bitcoin‘s price, which rose by 57% between November and year-end, according to Bloomberg data, signals a potential turnaround.

While major exchanges like Coinbase Global and Gemini slashed staff during the industry’s turbulent times, they now list over 70 and 60 open positions, respectively, on their websites. The recovery in coin prices in recent months has contributed to increased trading volumes, offering a hopeful outlook for both the industry and employment opportunities. As the crypto market continues to adapt to evolving dynamics, signs of resilience are emerging, hinting at a more stable phase in the near future.