Goldman Sachs: The collapse of the cryptocurrency market does not threaten the US economy

Investment giant Goldman Sachs sees no reason to panic about the fall in the crypto asset market, as it will not have a significant impact on the US economy.

The US economy is under significant inflationary pressure due to negative growth and sharp increases in the prices of fuels, goods and services. Some politicians have even announced that they expect a recession in the near future. Another factor affecting the economic situation in the country is the fall of the cryptocurrency market amid the collapse of Terra projects.

However, Goldman Sachs chief US economist Jan Hatzius adheres to a different opinion. The investment bank is confident that despite the fact that the United States accounts for about a third of the global digital asset market, and the decrease in the capitalization of the crypto industry over the past year amounted to almost $1 trillion, this will have little effect on the overall economic situation in the country.

“Therefore, we expect the slowdown in aggregate spending due to the recent decline in cryptocurrency prices to be very small. When considering the impact of the cryptocurrency rollback on the US economy, the main danger is that most of the crypto assets are owned by citizens from other countries,” the chief economist said in his report.

According to Hatzius, the total net worth of US households has reached a record high of $150 trillion, which almost eliminates the negative impact of the fall in the cryptocurrency market.

A study by Goldman Sachs showed that the largest share of 33% of the total net worth of US households was in stocks, while less than 0.3% is allocated to cryptocurrencies.

At the end of April, the American investment bank Goldman Sachs issued its first loan secured in bitcoins.