The pace of corporate bankruptcies in the US is now flashing recession warning signals. Through 2025, a record 2,221 individuals and small business owners have already filed for bankruptcy protection under Subchapter V—the legal framework designed for smaller entities. That's the highest count ever recorded in this category, and we're not even through Q1.



This matters because small-firm distress typically precedes broader economic strain. When sole proprietors and modest-sized operations start hitting the wall simultaneously, it usually means cash flow is drying up across the board. Consumers are tightening spending, credit conditions are tightening, and the runway for marginal businesses is shrinking fast.

For crypto and digital asset investors, economic recession cycles have historically created volatility windows. Risk assets get repriced sharply when macro conditions deteriorate, but they also eventually attract fresh capital looking for asymmetric upside. Keep an eye on this bankruptcy metric—it's essentially a real-time gauge of economic pressure at the ground level.
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RugPullSurvivorvip
· 12-27 01:31
The wave of bankruptcies is coming, small and micro enterprises can't hold on first, the opportunity in the crypto world has arrived --- Damn, the number of bankruptcies hit a new high before Q1 even finished, this pace is a bit fierce --- The wave of small business closures = the night before a major adjustment, it's time to stockpile coins --- Is the economy really going to collapse... I haven't even exchanged my fiat currency yet --- These data look grim, quickly transfer your money onto the chain --- If you have the skills, you can understand; recession is knocking, it's time to buy the dip, buddy --- Small business owners can't hold on anymore, ordinary people will have a harder time --- No way, just over a month and it set a record, how can it get better later? --- If the economy keeps playing like this, BTC is really going to take off --- The data is speaking, monetary policy should loosen, good news for risk assets --- Small and micro bankruptcy numbers hit a record, now it's retail investors' turn to buy the dip
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GasFeeNightmarevip
· 12-27 01:31
The wave of bankruptcies is coming, small businesses can't hold on anymore --- Q1 hasn't even finished yet, and there are 2221 companies, this data is quite intense --- Wait, will this really hit crypto? Or is it another signal to get on board? --- Cash flow drying up... feels like it's not far from us --- Small businesses die first, big capital withdraws later, an old trick --- So is it time to bottom out or continue to wait and see? Hard to say --- Remember, everyone, don't wait until you're bankrupt to realize the recession has arrived --- This might actually be the best window for institutions to buy the dip --- The entire economy is sounding the alarm, let's see how the crypto world reacts --- Here comes another round of "the worst time is the best time" talk
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POAPlectionistvip
· 12-27 01:28
The wave of bankruptcies is coming, small businesses are the first to fall, is a major collapse still far away... --- Damn, Q1 hasn't even passed and there are already 2221 cases, this data is a bit scary --- I've said it before, if small businesses can't hold up, the economy is finished, and now it's finally happening --- So should the crypto market start bottoming out? Or keep waiting and watching... --- Honestly, I think this is a signal before a bear market, no doubt --- Feels like this year will be very tough, friends around me are all having trouble running their businesses --- Small business bankruptcy wave = opportunity window? I agree with this logic --- But on the other hand, the US stock market is still hitting new highs, which doesn't seem right --- Wait, what does this mean? Is liquidity becoming tight? --- This indicator looks promising, more accurate than official data --- This is how it always happens before an economic recession; history always repeats itself
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RetailTherapistvip
· 12-27 01:27
The wave of bankruptcies is coming, will small retail investors be the first to die? Now it's our turn to buy the dip, right? --- Q1 just passed and these are the numbers, I really can't hold on anymore. --- Wait, is this another buying opportunity... The crypto world loves these big drops. --- The wave of small business closures is actually the earliest signal; consumers are already out of money. --- Oh my God, another round of sharp decline is coming. Where are my positions, huh huh huh? --- The number 2221 is outrageous; how much was it last year in total? --- So should we now enter the market and wait for the recession bottom? Or continue to observe? --- Watching the show, small merchants can't survive anymore, big capital is coming to buy the dip. --- If this wave of bankruptcies really happens, the crypto market might be bottoming out again. --- To be honest, economic downturns might actually be our opportunity window.
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GateUser-9ad11037vip
· 12-27 01:23
The wave of small business bankruptcies has begun. Now the institutions should be panicking, right?
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