Despite the recent turmoil in the cryptocurrency market, Goldman Sachs is optimistic about the future.
The crypto market has lost trillions of dollars over the past few weeks. This has alarmed investors. Goldman Sachs economists are not worried about this.
Goldman Sachs Weighs In
Goldman Sachs economists said that US households own about a third of the global cryptocurrency market. “The recent decline is very small relative to US household net worth.” used the phrases. He stated that the recent decline in the cryptocurrency market has not affected the spending habits of Americans much.
Taken together, we continue to expect tighter financial conditions to lead to a sharp slowdown in growth and spending this year, and declines in household wealth may encourage some workers who left the labor market during the pandemic to return. However, any incremental impact from the recent drops in cryptocurrency prices will likely be modest.
Crypto Market Recovers Ground
The sell-off caused significant pessimism in the crypto market, but many experts believe there are no signs of contagion that could affect the larger economy than the drop.
Joshua Gans recently noted that most banks and other traditional financial institutions are only just starting to take an interest in this issue.
The cryptocurrency market has regained some of its lost ground.
After hitting the lowest position since the end of 2020, Bitcoin hit $30,000 this week. Ethereum also crossed $2,000 as the week ended.
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