https://primexbt.com/?signup=565184
Cryptocurrency news
Trending

Stunning Cryptocurrency Report from Goldman Sachs: No impress!

While the cryptocurrency market is going through a difficult period, both the sharp correction and the collapse of the Terra (LUNA) project deeply affected the investors.

Stunning Cryptocurrency Report from Goldman Sachs: No impress!

While the cryptocurrency market is going through a difficult period, both the sharp correction and the collapse in Terra (LUNA) deeply affected the investors. So, how did this affect the US economy, which is home to a third of the cryptocurrency market?

Chaos Didn’t Affect the US Economy

The US economy is currently going through a period of great recession due to rising inflation and slowing growth. While experts are warning of a recession, there are fears that things could get worse in the short term. The approximately 55% depreciation of Bitcoin (BTC) from its peak and the chaos caused by the LUNA crisis has been a nightmare for many investors. While billions of dollars evaporated from the market, it was a matter of great curiosity how the US economy, which has a say in the crypto money market, was affected. But Wall Street banking giant Goldman Sachs doesn’t see much concern in this regard. The bank states that the recent crash in the cryptocurrency market will have little impact on the US economy.
Goldman Sachs economists announced that the total U.S. household net worth is $150 trillion, according to data from last year. On the other hand, the crypto market has lost $1 trillion in value over the past year. As such, economists believe this is a “too small” figure for the entire US household net worth. On Thursday, May 19, Goldman Sachs economists led by Jan Hatzius released the following statement:
We do not think that the impact of the collapse in the cryptocurrency market on the US public and economy will cause lasting damage in the long run.

Stocks, A Bigger Risk!

 During the last correction in the market, $7 trillion was vaporized from the US stock market. Economists are examining the impact of this sell-off in the stock and cryptocurrency market on the economy. Bloomberg cited a study that showed that every dollar lost in stocks leads to a 3-cent decrease in spending. Those five-month sales in 2022 represent a spending cut of over $300 billion.
According to research by Goldman Sachs, stocks account for 33% of total US household net worth by the end of 2021. On the other hand, cryptocurrencies make up only 0.3%. Goldman Sachs economists released the following statement:
 Fluctuations in stock prices have a greater impact on the US public and economy. Cryptocurrencies, on the other hand, have a smaller impact.

Samuel Hegi

Samuel Hegi , who first became acquainted with blockchain technology in 2014, is highly critical of blockchain technology. Samuel Hegi, a journalism graduate from the University of Brighton Theblockchainnew.com he is the editor-in-chief of the news portal. Blockchain is love.

Leave a Reply

Your email address will not be published.

Back to top button

Enter your email address:

Delivered by FeedBurner