Goldman Sachs has pointed out that the recent crash in the crypto market will have little effect on the United States economy in the long run. The country is working tirelessly to evade recession as inflation has taken the reins amid the deceleration of growth in the economy. Meanwhile, the crypto market has been a significant source of worry for top echelons in the country as it houses a massive number of crypto holders.
US households have lost $1 trillion to the crypto market
In a recent statement, Goldman Sachs mentioned that there is no worry regarding the crypto market in connection to the US economy. The firm pointed out that the current turmoil in the market will have a minor impact on the country’s economy. In the statement, Goldman Sachs mentioned that households in the US boast a cumulative $150 trillion in net worth. This is compared to the $1 trillion that the crypto market has lost. The analysts at the firm compared the two figures and argued the likely effects on US citizens. According to the analysts, they expect that any impact that the market crash will have on the US will not be noticeable.
Goldman Sachs breaks down the figures
This recent overall market crash has been bad for all financial market sectors. The crash has spanned days, with some assets coming up and losing majorly at intervals. Although people state that the recent LUNA crash triggered the market decline, there have been concerns about a market downfall before it occurred. Asides from the crypto market, the United States equity market has also tumbled, losing $7 trillion in the process. On a broader scale, experts are still looking at the impact that they will have on the general US economy.
According to a recent Bloomberg report, about 3 cents is erased from spending from every $1 that traders lose to stocks decline. The recent crash has cumulatively resulted in the loss of nothing less than $300 billion. A recent Goldman Sachs study shows that about 33% of the households in the US hold at least one stock or another. Meanwhile, only 0.3% of homes in the country had a form of crypto. The numbers show that equity will do a better job dragging down the net worth of households in the US compared to what crypto will do. The report also noted that the population of the US holding crypto is in the younger brackets.
Source: https://www.cryptopolitan.com/goldman-sachs-crash-effect-on-the-us-economy/