Goldman Sachs says the crypto crash will have a small impact on the U.S.

2022-5-21 00:30

Analysts at banking behemoth Goldman Sachs believe the recent crypto crash will have little impact on U.S. households.

Michael S. Derby, a special reporter from Wall Street Journal, shared this information through a Twitter screenshot on May 19. The bank’s analysts, led by Jan Hatzius, estimated that U.S. households hold approximately one-third of the global crypto market.

Goldman Sachs: Cryptocurrency bloodbath should have little impact on overall U.S. financial conditions and spending ability. pic.twitter.com/LKibj32CSv

— Michael S. Derby (@michaelsderby) May 19, 2022

Explaining why they don’t believe the crash will have a massive impact on U.S. households, the analysts said the recent decline is very small relative to the net worth of U.S. households. Additionally, Goldman Sachs’ analysts do not expect the spending habits of Americans to change. 

Young American men were most likely to suffer from the crash

The analysts further predicted that there would be limited scope for an increase in labor force participation due to the decline in crypto prices. According to them, this is because crypto holdings form a small share of household wealth.

Additionally, the labor force participation rate of young men, which was the most susceptible demographic,  has already fully recovered to its pre-pandemic level.

While Hatzius and his team believe crypto alone will not alter the spending habits of Americans, they said,

“Taken together, we continue to expect that tighter financial conditions will lead to a sharp slowdown in growth and spending this year, and declines in household wealth may very well incentivize some workers that left the labor market during the pandemic to return. However, any incremental impact from the recent declines in cryptocurrency prices will likely be modest.”

This news comes as the crypto market continues posting a mediocre performance following the collapse of TerraUSD (UST) and Terra (LUNA). At the time of writing, Bitcoin (BTC), the leading crypto by capitalization, is trading at $29,332.22 after losing 3.04% over the past 24 hours. 

The altcoin market is also performing poorly, with Ethereum (ETH) changing hands at $1,968.09 after losing 2.11% in the day.

The post Goldman Sachs says the crypto crash will have a small impact on the U.S. appeared first on CryptoSlate.

Similar to Notcoin - TapSwap on Solana Airdrops In 2024

origin »

Impact (IMX) на Currencies.ru

$ 0.0005193 (+0.00%)
Объем 24H $0
Изменеия 24h: 0.00 %, 7d: -34.78 %
Cегодня L: $0.0005193 - H: $0.0005193
Капитализация $57.451k Rank 99999
Доступно / Всего 110.631m IMX

crash crypto sachs goldman impact small says

Источник: cryptoslate.com

crash crypto → Результатов: 126


Фото:

Crypto Price Analysis April 21: BTC, ETH, XRP, BCH, BSV, LTC, BNB, EOS, XTZ, LINK

April 21 brought a new milestone to the Bitcoin (BTC) price. It was worth more than 7000 barrels of oil, significantly more than at any other point in history. However, this was not caused by an increase in the cryptocurrency’s price but rather a complete crash in the price of oil — which, at one […] The post Crypto Price Analysis April 21: BTC, ETH, XRP, BCH, BSV, LTC, BNB, EOS, XTZ, LINK appeared first on BeInCrypto.

2020-4-22 22:49


After The Crypto Price Crash During COVID-19, BTC Mining Hash Rate Has Regained 34%

A North American Bitcoin mining operator Bitfarms shared that they continued to mine BTC despite the violent sell-off triggered by investors' fear over the COVID-19. Interim CEO and Chief Strategy Officer, Emiliano Grodzki said, “We are pleased to see that, despite the challenges to traditional markets, our scale and quality of operations has allowed us […]

2020-4-8 21:28


Фото:

Coinbase Reports ‘Record-Breaking’ Trading Activity During Bitcoin Crash on March 12

Major cryptocurrency exchange Coinbase has said that there was an interesting spike on its Bitcoin purchase volume when the king coin crashed on March 12. In a recent report titled “On Crypto Markets and Bitcoin’s Value Proposition”, Coinbase said a lot of its customers took advantage of the plunge and bought into the market when […]

2020-4-1 21:32


Japanese BTC Retail Investors Bought the Dip During Recent Price Crash: Report

During the recent price crash, Japanese retail crypto investors bought the dip, according to a market analyst at Japanese cryptocurrency exchange BitBank, Yuya Hasegawa. Despite the price of bitcoin tanking, the situation is “vastly” different from the time before the Crypto Winter of 2019 as the volume and change in the number of accounts indicates […]

2020-3-26 20:15


Фото:

Crypto Analyst Says Bitcoin Price Still Depends on Stock Market as Correlation still Intact

Bitcoin experienced a severe crash last week alongside the stock market which was responding to the COVID-19 pandemic that has led to record crashes in stock prices. The crash in BTC price suggested its correlation with the stock market although some have argued that this is not the case. The number one cryptocurrency was on […]

2020-3-23 00:42


Фото:

This news proves the crypto industry isn’t dead even after Bitcoin’s 50% crash last week

Glancing at Bitcoin’s price performance over the past week, punctuated by a 50 percent decline on the days Mar. 12 and 13, it’s easy to say that “crypto is dead.” Case in point: Peter Brandt, a long-time commodities trader that once said BTC could hit $50,000 and beyond, recently argued that if he looks at […] The post This news proves the crypto industry isn’t dead even after Bitcoin’s 50% crash last week appeared first on CryptoSlate.

2020-3-18 03:30


дальше еще 77 новостей →

Партнеры Currencies.ru

Реклама на Currencies.ru

Самое свежее на Currencies.ru

Stablecoins see reduced activity amidst market uncertainty: What now?

The stablecoins activity has taken a hit in recent weeks. The dominance chart reflected reluctance from market participants to buy assets. Bitcoin [BTC] was under pressure in the lower timefThe post Stablecoins see reduced activity amidst market uncertainty: What now? appeared first on AMBCrypto.

Ripple CEO Brad Garlinghouse defends Tether stance: What did he say?

Garlinghouse criticizes the SEC and the U.S. government regarding Tether. Tether maintained dominance despite controversies, indicating resilience. In a recent development, Ripple [XRP] CEO The post Ripple CEO Brad Garlinghouse defends Tether stance: What did he say? appeared first on AMBCrypto.

USDC surpasses Tether USDT - A sign of stablecoins' future?

USDC surpasses USDT, indicating a shift in stablecoin market dynamics. Leaders stress aligning stablecoins with democratic values and transparent regulations. In a surprising development, CiThe post USDC surpasses Tether USDT - A sign of stablecoins' future? appeared first on AMBCrypto.

Why USDT dominates 70% of the stablecoin market

The stablecoin market capitalization was trending upward once again One metric hinted at negative sentiment and selling pressure in the market Stablecoins are integral to the crypto ecosysteThe post Why USDT dominates 70% of the stablecoin market appeared first on AMBCrypto.