The crypto market shed trillions of dollars in value over the past couple of weeks, inducing fears it could hurt the larger economy. But Goldman Sachs economists are not worried about any possible impacts on US households.in a note said that US households own about one-third of the global cryptocurrencies market, in which case, “the recent decline is very small relative to US household net worth.
Even as younger men were estimated to be the worst hit demographic in the recent bloodbath, the economists do not believe that this will trigger a spike in labor force participation among them. In fact, Goldman asserted that such scope is limited, citing that this demographic has already recovered to its pre-pandemic level. The letter further pointed out,
“Taken together, we continue to expect that tighter financial conditions will lead to a sharp slowdown in growth and spending this year, and declines in household wealth may very well incentivize some workers that left the labor market during the pandemic to return. However, any incremental impact from the recent declines in cryptocurrency prices will likely be modest.
Shit. 12 month bear market confirmed then.
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Source: FXStreetNews - 🏆 14. / 72 Read more »