Cryptocurrencies represent a very small share of the total household wealth, according to Goldman Sachs
In a recent note, Goldman Sachs analysts conclude that the cryptocurrency crash should have little impact on Americans.
The banking giant estimates that about a third of the global cryptocurrency market is owned by US households.
Considering that total household wealth topped $150 trillion for the first time earlier this year, the recent downturn in the cryptocurrency market will not affect Americans’ spending habits in any meaningful way.
Moreover, Goldman doesn’t expect the ongoing market correction to cause a major spike in labor force participation among young men, the demographic group that is the most likely to suffer from declining prices.
That said, the bank does believe that more people will be incentivized to return to work due to tighter financial conditions.
Federal Reserve Chairman Jerome Powell recently said that he would not hesitate to raise rates despite the fact that both stocks and crypto have taken a severe beating due to the central bank’s hawkishness.
Bitcoin is trading slightly below $30,000 at press time, failing to stage a convincing comeback.
As reported by U.Today, Goldman Sachs CEO David Solomon recently said that he didn’t care about cryptocurrency prices.