Goldman Sachs: Crypto-market decline had little impact on the US economy

Declines in stock and bond prices have mattered more for US household savings than the negative revaluation of cryptocurrencies, Goldman Sachs analysts said, CoinDesk reports.

The impact of Bitcoin’s price drop and other digital assets on aggregate demand will be limited given the scale of such investments.

Analysts estimate that Americans own roughly a third of the crypto market’s total capitalization of $1.3 trillion. Net household wealth stood at $150 trillion (as of Q4 2021).

The ongoing price decline has likely reduced the valuation of digital assets by roughly $300 billion. Their share now amounts to just 0.3%, analysts estimate. For comparison: stocks accounted for about 33% of net wealth. The fall in the value of securities left shareholders $8 trillion poorer in total.

Earlier, U.S. Treasury Secretary Janet Yellen said that there were no risks to financial stability from the TerraUSD incident.

Earlier, Chainalysis researchers estimated $47 billion in profits for U.S. residents from cryptocurrency investments in 2021.

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