As reported by Bloomberg, US banking giant Goldman Sachs notes that the latest crypto market crash had almost no effect on the financial well-being of US consumers.
Goldman Sachs analysts note that the recent crypto correction is “very small” in relation to US households’ overall net worth, which in 2021 totaled $150 trillion.
For reference, during the latest correction, the total crypto market cap dipped from $2.3 trillion to $1.28 trillion currently according to CoinMarketCap data.
The report also says that a crypto bear market will have a minimal impact on US aggregate spending. As cited by Bloomberg:
“We therefore expect any drag on aggregate spending from the recent declines in cryptocurrency prices to be very small as well.”
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The banking giant highlights that by the end of 2021, crypto accounted for just 0.3% of US household net wort, while the the equity market was good for 33% of household net worth:
“These patterns imply that equity price fluctuations are the main driver of changes in household net worth, while cryptocurrencies are only a marginal contributor.”