While a technical correction is brewing in the crypto market, especially given the rally seen earlier this year, software giant Microsoft has announced that it is closing one of its largest Industrial Metaverse Core groups. The company reportedly laid off its entire Industrial Metaverse Core group of 100 employees. This came as part of an announced layoff of 10,000 people in January.
Microsoft, the Washington-based software giant, abandons the metaverse in favor of other initiatives. According to The Information, the company has disbanded the Industrial Metaverse Core group, a division of the company dedicated to bringing the metaverse into an industrial environment. The group was created just four months ago and was expected to serve as a bridge to implement metaverse interfaces to control power plants, industrial robotics, and transportation networks. The division was part of the efforts directed to bring the metaverse to industrial environments by bridging software to this initiative.
"Microsoft remains committed to the industrial metaverse. We are applying our focus to the areas of the industrial metaverse that matter most to our customers and they will see no change in how they are supported. We look forward to sharing additional information in the future," the tech giant's spokesperson said.
According to experts, this suggests that Microsoft will now use some of its resources from metaverse initiatives and pour them into other areas, such as artificial intelligence. Earlier reports show that Microsoft's cuts have affected other metaverse projects, as well as employees of the Altspacevr metaverse platform, which announced its closure by March of this year. Since January of this year, Microsoft has been actively investing in AI-based start-ups. Thus, against the backdrop of the crypto winter, it is not surprising that the company shut down a number of non-core projects and refocused on more alternative directions.
Most likely, once the crypto industry "rises from the ashes," which will affect the emergence of new start-ups, including in the metaverse, it will be easier for Microsoft to invest in them at an early stage than to spend money and maintain their development.
As for bitcoin, the pressure on it remains quite high. If BTC drops below $21,700, it may face another major sell-off. We can talk about the return of bulls to the market only after the return and fixation at $22,580, which will return the bullish trend with the prospect of hitting $23,350 and $24,000. The next target is located at $25,034, where a rather large profit-taking and a bitcoin pullback may occur. If the pressure on the trading instrument persists, bulls will have to protect $21,700, a breakthrough of which will be a blow to the asset. That will bring the pressure back on bitcoin, pushing the price down to $20,740. Breaking through this level, the world's first cryptocurrency may plummet deeper to the area of $19,770.
Buyers of ether are now focused on returning the price back to the resistance of $1,521, which they failed to protect earlier this week. This will be enough to weather the drawdown and prevent a new sell-off in the asset. The price may hit the highs and continue its bullish trend only after getting above $1,604 and $1,690, which will bring the ether back in balance, with the prospect of rising to a high of $1,758. The next target is located in the area of $1,819. If the pressure on the trading instrument remains and the price declines, ether is likely to touch $1,410 and $1320. If these levels are pierced, the trading instrument may reach a low of $1,260, which would be quite painful for cryptocurrency holders.
