The crypto and finance sectors are navigating through a difficult phase, given high geopolitical tensions and a range of macroeconomic factors surrounding them. A recent report by the US JOLTS (survey by the Bureau of Labor Statistics) reveals that finance-related job openings are decreasing in numbers.
Although crypto is not directly part of this broader collapse in financial job openings, our focus is to discuss how crypto layoffs are developing, as this is a much-discussed topic within the industry.
Investor funding slows as institutional investors risk averse
One factor we are considering that affects the crypto industry is that institutional investors are becoming increasingly cautious and selective about crypto, although the total investment surged in 2025.
This happens due to risk-off sentiment. When risk-off sentiment prevails, less money flows into new crypto ventures, investors scrutinize firms, and a few investors back high-risk assets.
To note, institutional investors include venture capital (VC), ETFs, and hedge funds.
Cryptocurrencies are risky assets; a well-known fact. Chances are always high that these digital assets typically lean toward any impactful events in the world, meaning they get easily affected.
Anton Golub, the Founding Member of RWA Labs, recently noted in a LinkedIn post that “Crypto VC funding is dead. Spot Bitcoin ETF flows are down -$60 billion from peak.”
As Otavio Costa, CEO of Azuria Capital, noticed, the VC index is slowing down by over 30% from its peak. Due to this cooldown, he views that overall interest rates might fall heavily as central banks often lower interest rates, encouraging borrowing and investment.
Crypto VC funding hits the brakes as investors move to AI
AI, an inevitable factor, has created both positive and negative sentiments throughout major sectors of the world. Focusing more on the advantages, institutional investors are slowly shifting their attention from crypto to AI.
Last week, several crypto media platforms reported that crypto venture capital funding dipped significantly earlier this month, with capital flowing more into sectors that provide quick revenue potential. And one such sector is AI.
Also, the VC funding for crypto declined in 2026 when compared to 2025, with some weeks showing only $135 million raised.
Data from DefiLlama shows declining interest in crypto VC funding
Whatsoever, one thing readers should keep in mind is that crypto capital funding has gradually surged in 2025, but it has become more cautious and selective.
Crypto ETF flow signal inconsistency
In 2026, crypto exchange-traded funds (ETFs), especially Bitcoin ETFs, have been volatile, with large inflows noted in early January followed by renewed outflows mid-month. In other words, crypto ETF inflows are not stable as market sentiments swing rapidly.
Findings by data analytics platform Amberdata read that institutions are trading crypto for short-term positioning rather than long-term allocation. Coming to DefiLlama data, crypto ETF inflows from major coins like Bitcoin, Ethereum, and Solana have been less since November 2025.
However, this doesn’t mean that crypto ETF flows are weakening entirely, as the sector is experiencing unprecedented growth with more asset management platforms filing for crypto ETFs.
Now, what’s the ultimate result? Slow institutional investment, selective capital allocation, inconsistent crypto ETF flows, geopolitical tensions, and other factors can indirectly hit the crypto job sector. Even AI taking over jobs has caused crypto layoffs. The recent example shows Jack Dorsey’s Block reduced workforce due to AI-driven restructuring.
Finance job openings fall to the lowest since February 2012
According to the monthly survey by JOLTS, finance-related jobs, including insurance jobs, fell from 117,000 to 134,000 in December 2-25, which is the lowest level since February 2012.
This collapse reflects a broader shrinking in the financial sectors, a pattern that is mirrored in the crypto sector. In crypto, startups and other reputable firms are massively reducing their workforce as venture funding slows, ETF inflows slightly decline, and geopolitical tensions dominate.
However, there could happen this interesting move — slow hiring in traditional finance may cause talent migration. Several professionals from Wall Street may move to digital asset firms.
In brief, it is not just traditional finance that is laying off employees; crypto has already been experiencing multiple waves of layoffs during market crashes, geopolitical tensions, and the resulting volatile crypto inflows and lower institutional funds.
