The downturn in the crypto market will not threaten the US economy – cryptocurrencies are too small so far

The major US investment bank Goldman Sachs does not think that the fall in cryptocurrency prices may have a negative impact on the US economy.

A leading Wall Street bank claims that “the recent decline in cryptocurrencies is very small compared to the net asset value of US households” and is therefore very unlikely to cause more serious damage to the market.

BTC is currently over 57%, ETH 60%, Binance Coin 55%, XRP 88%, Solana 80%, Dogecoin 89% or Cardano 82% away from historical highs. In other words, investors who bought cryptocurrencies during the period of the greatest madness have either made large losses or currently have significant unrealized losses. The recent collapse of the “sister” cryptocurrencies Terra (LUNA) and the UST was further intensified by the cryptocurrency declines, when the stable coin UST lost its ability to fixate against the US dollar.

Goldman Sachs analysts say that although billions of dollars have disappeared from the cryptocurrency market in recent months, there is no cause for serious concern. “This crash has raised questions about whether this decline in wealth may affect spending and labor supply in the United States. Our rough estimate is that US households own about one-third of the global crypt market. If true, the recent decline is very small compared to net household assets in the United States, which was $ 150 trillion last year. “ pointed out that the crypto market is, in fact, still very young and small, because its current market capitalization does not represent a single percentage of the assets that are “in the hands” of American households.