MicroStrategy's Significant Bitcoin Impairment Losses May Mislead: Berenberg
Turkish Crypto Exchange Thodex CEO Faruk Özer Sentenced to 11,196 Years in Prison for Collapse
DeFi and Credit Risk
According to Goldman Sachs (GS), any impact on aggregate US expenditure from the recent collapse in the cryptocurrency market is likely to be minor. Because of the decreases, there is also very little room for an increase in labor force participation, according to the report.
The percentage of crypto wealth held by investors in other nations, according to the bank, is an essential factor. According to Goldman, US consumers possess about one-third of the $1.3 trillion worldwide crypto market worth. This suggests that the recent market value fall is insignificant in comparison to US family net worth, which was $150 trillion in the fourth quarter of 2021.
Recent crypto price falls are estimated to have lowered U.S. crypto assets by $300 billion, accounting for only 0.3 percent of household net worth, according to the note.
Equities, on the other hand, accounted for roughly 33% of household net worth at the end of last year, and the current stock market decline has likely lowered household net worth by $8 trillion, according to the note.
Tighter financial circumstances will cause a quick slowdown in growth and spending this year, according to the analysis, although any incremental impact from the recent drop in crypto prices will be "minimal."
======
