Goldman sees little economic impact from crypto market downturn

• Crypto drop is ‘very small’ relative to overall household net worth

• ‘Expect any drag on aggregate spending from the recent declines in cryptocurrency prices to be very small’ - Hatzius

The continuous downturn in the cryptocurrency market will not have any significant effect on the economy, even though US households own about one-third of the global digital assets, Goldman Sachs said in a report.

Although the overall crypto market value slumped to about $1.3 trillion, down from $2.3 trillion late last year, the recent selloff is “very small” relative to overall household net worth, which stood at $150 trillion in 2021.