Crypto Bear Market No Effect on US Consumers, Goldman Sachs Reports
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.”
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.”
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Source: igaming
