The U.S. labor market showed clear signs of weakening through 2025, marking what leading economists are calling a hiring recession. While official unemployment figures painted one picture, the reality beneath the surface revealed significant hiring slowdown across sectors. This shift has meaningful implications for asset allocation strategies—economic contraction typically reshapes investor risk appetite, influencing capital flows toward alternative assets including digital currencies. When traditional employment growth stalls, it often triggers defensive repositioning in portfolios, making this cycle worth monitoring closely for market participants.