According to a group of bank experts from Goldman Sachs led by Joseph Briggs, any impact of the crypto market’s collapse on US household spending should be minimal.
US household net worth share in crypto and equities
According to the Goldman Sachs team research, crypto holdings comprise a negligible part (only 0.3%) of US household net worth while the equities holdings comprise a significant portion (29%). The reason behind the minimal impact of the crypto market’s collapse is that the current decline is very minute relative to US household net worth.
Goldman Sachs research
The researchers from Goldman Sachs said that there is undoubtedly a degree of ambiguity around the bank’s assumptions in their research. For example, they are not having clarity on whether the tendency to spend out crypto holdings will be larger or smaller in comparison with equity markets as well as other types of assets.
However, the results of their research strongly suggest that the virtual currencies impact will be negligible relative to other aspects.
Current status of the crypto market and US economy
Anxiety over broader market circumstances, as well as the crash of TerraUSD (UST), has driven traders away from the cryptocurrency area. Furthermore, Bitcoin’s price has dropped by more than 35% since the commencement of the year.
This is raising concerns that the decrease in values in the fledgling market may have a negative influence on the US economy. Those concerns, at least, are exaggerated, according to a Goldman Sachs research report distributed to clients.
