Banking mogul Goldman Sachs said the most recent cryptocurrency market crash had little effect on the financial well-being of US consumers.
according to new report According to Bloomberg, Goldman Sachs economists say the latest cryptocurrency correction is “very small” compared to the total net worth of US households, which was $150 trillion in 2021.
In comparison, the cryptocurrency market plummeted from $2.3 trillion to $1.3 trillion during the recent sell-off period.
Economists also expect a bearish cryptocurrency market to have a limited impact on total spending, despite Americans owning a third of the global cryptocurrency market.
A panel of economists led by Jan Haztius, cited by Bloomberg, says:
“Therefore, we expect the burden on total spending from the recent drop in cryptocurrency prices to be very small.”
By the end of last year, cryptocurrencies accounted for only 0.3% of U.S. household net worth, according to the giant bank. In contrast, the stock market accounted for 33% of household net worth at the end of 2021.
“These patterns mean that stock price movements are the main driver of changes in household net worth, while cryptocurrencies make a minor contribution.”
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