According to The Kobeissi Letter, US employers announced 93,816 job cuts in May 2025, marking a 47% year-over-year increase and the highest level for any May since 2020. The services sector led with 22,492 layoffs, its highest in five years, followed by retail and technology at 11,483 and 10,598 cuts respectively (source: The Kobeissi Letter). Such widespread layoffs in key sectors can add pressure to traditional financial markets, often increasing volatility and risk-off sentiment among investors. Historically, labor market weakness has driven increased interest in alternative assets like Bitcoin and Ethereum as traders seek non-correlated opportunities. Short-term, traders should expect heightened volatility and potential inflows into crypto assets as macroeconomic uncertainty rises.