Despite Bitcoin's recent surge nearing its all-time high and the introduction of crypto ETFs, the American crypto industry faced significant layoffs this week. Major firms, including Ethereum software giant Consensys, decentralized exchange DYdX, and Kraken, announced substantial workforce reductions. Experts suggest that while Bitcoin's price is rising, the influx of capital is favoring traditional finance companies over crypto-native firms. Investors are still cautious due to regulatory uncertainties and the upcoming presidential election, which may lead to clarity but has also contributed to a chill in activity and investment. Regulatory expenses, particularly from the SEC, have compounded issues, with companies like Consensys reporting millions spent on lawsuits. Experts believe many crypto-native companies might struggle to survive in a saturated market, suggesting a potential consolidation in the sector. Overall, while Bitcoin's performance remains strong, it does not guarantee industry-wide gains, with many questioning the sustainability of the current crypto landscape without fresh innovative use cases for blockchain technology.

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