US banking giant Goldman Sachs has released a research note on concerns that the decline in the crypto market could have a spillover effect on the US economy.
According to a report by The Block, Goldman Sachs addressed spillover concerns, which have been frequently voiced recently, in a recent note to customers. Accordingly, it was stated that the decline in the cryptocurrency market, triggered by a number of factors such as macroeconomic concerns, the collapse in the IHR, should have a very limited impact on US spending. The reason for this was that the recent decline in the market was very small compared to the US household net worth. Bitcoin has dropped 35% since the beginning of this year.
According to the bank, cryptocurrency assets as a percentage of net worth represent only 0.3% of US household net worth. On the other hand, this rate is 29% for US stocks. The researchers stated in the report:
“While there is a lot of uncertainty around our assumptions, our results show that the impact of the crypto market is likely to be limited relative to other factors.”
