Key Insights
- •Bitcoin news highlights that U.S. employers have announced 1.17 million job cuts in 2025, marking the second-highest total in 16 years and on pace to match 2008 crisis levels.
- •Layoffs are now impacting every demographic, with college-educated workers comprising a record 25.3% of the unemployed population.
- •With 60% of Americans believing the country is already in recession and the Federal Reserve poised for another rate cut, Bitcoin's resilience underscores cryptocurrency's growing role as a financial hedge.
Economic Paradox: Job Cuts vs. Market Gains
Bitcoin news on December 8, 2025, revealed a striking economic paradox as U.S. employers announced 1,170,821 job cuts for the year, the second-highest figure in 16 years and nearing the levels seen during the 2008 crisis.
A detailed analysis by The Kobeissi Letter captured the prevailing sentiment, noting that 60% of Americans perceive the country to be in a recession, attributing this to inflation and strains on family finances. Concurrently, the S&P 500 has seen a significant increase of $17 trillion since April and is approaching its 29th record high.
For Bitcoin, this divergence signals resilience. Glassnode's Market Pulse report from the afternoon of December 8 indicated a dip in spot Coin Days Destroyed (CVD) and open interest due to ETF outflows. However, on-chain fundamentals strengthened, positioning BTC above $91,500 with potential to reach $94,000 if downside hedging eases.
Labor Market Fracture: Widespread Job Losses
November alone saw 71,321 job cuts, the third-highest monthly total on record, according to figures from Challenger, Gray & Christmas, as detailed in The Kobeissi Letter's analysis.
This surge has pushed the 2025 total to approximately 1.2 million, surpassing pandemic-era peaks for the first time since 2020. A bar chart within the analysis illustrates this trend, showing job cut announcements climbing from 500,000 in 2019 to over 1.2 million currently.
The impact of these layoffs is being felt across all demographics. Individuals with four-year college degrees now constitute 25.3% of the unemployed, a rate that is double the 2008 figure and higher than 2020 levels, based on cross-referenced Bureau of Labor Statistics data.
Public opinion surveys reflect this widespread concern. A CNBC poll noted on December 8 indicated that 68% of respondents cite inflation and rising costs as triggers for recession, while 50% report that family members are expressing worries about finances.
Bitcoin's Technical Strength Amidst Economic Gloom
Offering a counterpoint to the economic downturn, Bitcoin news points to positive technical indicators. As observed by @im_BrokeDoomer on December 8, BTC price broke its downtrend pattern on larger timeframes and is targeting $92,150 after escaping a bullish pennant formation, with charts showing a clear breakout above prior resistance levels.
This technical shift aligns with historical patterns where labor market weakness has led to increased retail investment in cryptocurrency. Chainalysis data indicates a 15% rise in U.S. transaction volume during the tech layoffs of 2022.
On-Chain Fundamentals Strengthen Despite Off-Chain Caution
Glassnode's update on December 8 provided a nuanced view of Bitcoin's market signals. While Bitcoin USD rebounded to the $90,000 range with rising momentum and volumes, spot Coin Days Destroyed (CVD) and open interest saw declines, suggesting softer market conviction.
The options markets indicated increased hedging against downside risk, and ETF outflows totaling $150 million last week, according to Farside Investors, tempered speculative appetite.
In contrast, on-chain metrics presented a more positive outlook. Fundamentals and profit/loss states showed improvement with increased activity, although capital flows softened as value rotation eased, Glassnode reported.
Bitcoin USD price maintained levels above $91,500, testing the upper boundary of the pennant formation, as highlighted by @im_BrokeDoomer, where the risk-reward ratio favored long positions at 1:3.
This resilience is reminiscent of past market cycles. During the 2020 period, which saw 22 million unemployment claims, BTC experienced a 300% rally as a hedge against economic uncertainty, according to CoinMetrics data.
Currently, with Polymarket data showing recession odds at 33%—an 11-point decrease since October—Bitcoin news emphasizes its growing potential to act independently of traditional economic downturns.
Bernstein's latest analysis, shared by VanEck's Matthew Sigel, suggests that the Bitcoin cycle has deviated from its typical four-year pattern due to sustained institutional buying, which has absorbed retail panic. This is evidenced by less than 5% ETF outflows during a recent 30% market correction.
Consequently, Bernstein forecasts Bitcoin reaching $150,000 by the end of 2026, peaking at $200,000 in 2027, and potentially reaching $1 million by 2033.
AI Boom Masks Underlying Economic Weakness
While GDP expanded by 3.8% year-over-year in Q2 2025 and 1.6% in the first half, The Kobeissi Letter explained that 63% of this growth was attributable to AI spending, indicating that the rest of the economy is "far weaker."
Data center investments have tripled since the launch of ChatGPT in November 2022, according to U.S. Census construction statistics. In contrast, investments in non-data center structures have declined by 20% from their 2023 highs.
The Federal Reserve's third rate cut of 2025, anticipated on December 18, is aimed at supporting consumers amidst 3.1% core PCE inflation. The top 10 stocks now represent 76% of the S&P's market capitalization, driving the index toward 7,000. This disparity, often described as a "two economies" rift between Wall Street's prosperity and Main Street's struggles, amplifies Bitcoin's appeal.
In the context of Bitcoin news, this liquidity infusion historically benefits cryptocurrencies. Following job cuts in 2019, BTC experienced a doubling in price over several months as M2 money supply grew by 25%, according to Federal Reserve records.
Bernstein's assertion that institutional flows are "elongating" the bull cycle further supports this, suggesting that traditional halving-driven peaks are being superseded by sustained demand, even as retail investors express concerns over job security.
Stagflationary Environment and Bitcoin as a Hedge
The prospect of rate cuts occurring within a stagflationary environment suggests "more nominal appreciation in assets," according to The Kobeissi Letter, which quoted, "Own assets or be left behind."
While commodities like gold have reached approximately $2,700 per ounce and 10-year Treasury bonds yield 4.2%, BTC's year-to-date gain of 145% to reach $90,000 significantly outshines these traditional assets.
Glassnode's observation of softening off-chain indicators, including reduced futures leverage and increased hedging, points to market caution. Nevertheless, spot market strength persists. The sentiment captured by @im_BrokeDoomer's call to action—"don’t watch from sidelines, earn f**kin money"—reflects retail investor sentiment. Bitcoin's dominance stood at 54% with a total market capitalization of $3.1 trillion on December 8, as reported by CoinMarketCap.
Original data from Dune Analytics reveals a daily on-chain volume of $4.2 billion last week, representing a 12% increase, which is partly attributed to synergies between AI and cryptocurrency, such as tokenized data.
For the 25.3% of the population facing unemployment with college degrees, Bitcoin staking offers yields of 4-5% through platforms like Lido, providing an income source absent in traditional savings accounts, which currently yield around 0.5%.
Bernstein's projection of a $200,000 peak by 2027 suggests even greater potential upside for those hedging their assets now, especially as institutional demand helps to moderate market corrections.
Bitcoin news concludes with an uncertain outlook. A decisive break above $92,773, as charted by @im_BrokeDoomer, could lead to a price of $94,000. However, ETF flows and options market skews warrant caution and attention to levels below $91,000.
With the S&P 500 experiencing its sixth rally of 35% in six months over the past 30 years, BTC's price action mirrors the resilience seen in mega-cap stocks. Traders are closely monitoring the Federal Reserve's economic projections for indications on the pace of future rate cuts; a more aggressive easing policy could mirror the 150% BTC surge observed in 2021.
Bernstein's thesis of an elongated bull cycle, set against a backdrop of recessionary fears, positions Bitcoin not merely as a cyclical asset but as a maturing asset class, with $150,000 now considered a new baseline target.
In this fragmented economic landscape, Bitcoin USD is demonstrating its ability to not only withstand challenges but also to serve as a key asset for individuals impacted by economic downturns, combining technical advancements with prevailing macroeconomic trends. As articulated by The Kobeissi Letter, the current financial revolution is impacting "stocks, commodities, bonds, and crypto." The immediate focus remains on whether Bitcoin can break through the $94,000 mark.