US Households Own Roughly 1/3 of Global Crypto Market
By Senad Karaahmetovic
The value of the global cryptocurrency market has fallen to around 1 trillion since November’s selloff. (BTC) Prices have lost almost 60%.
Goldman Sachs’ Jan Hatzius has analyzed the impact of lower crypto prices on the US economy. According to them, US households hold about one third of the world’s crypto market. This means that the decline in crypto prices is “very small relative to US household net worth, which stood at $150tn as of last year.”
“We therefore expect any drag on aggregate spending from the recent declines in cryptocurrency prices to be very small as well,” Hatzius said in a client note.
Similarly, the Chief Economist at Goldman Sachs also sees “very limited scope for an increase in labor force participation due to crypto price declines.”
Hatzius predicts that spending and growth will slow in the US this year.