Posted May 21, 2022
By Matt Insley
Economic Impact of A Crypto Crash
According to Goldman Sachs, the collapse in cryptocurrency prices is unlikely to have an impact on the US economy.
The company’s head economist, Jan Hatzius, along with his team, said crypto HODLers in the United States have lost around $300 billion in the last six months. That may seem like a large sum, but it only accounts for 0.3% of American household wealth.
Bitcoin, the most valuable cryptocurrency, is down roughly 37% year to far, with performing even worse. The devastation in lesser alt-coins, and the collapse of TerraUSD earlier this month have left investors with understandable concerns.
Although billions of dollars in investor funds have been lost, and U.S. individuals own a significant amount of cryptocurrency, researchers at the investment bank say there is no reason to be concerned.
Goldman Sachs believes the current haemorrhage will have little influence on the economy.
"Any incremental impact from the recent declines in cryptocurrency prices will likely be modest…" -Goldman's chief economist Jan Hatzius