Analysts at banking giant Goldman Sachs believe the recent cryptocurrency crash will have little impact on American households.

Michael S. Derby, special reporter for the Wall Street Journal, shared this information via a Twitter screenshot on May 19. The bank’s analysts, led by Jan Hatzius, estimated that US households own about a third of the global crypto market.

Explaining why they don’t think the drop will have a massive impact on American households, the analysts said the recent drop is very small relative to the net worth of American households. Additionally, Goldman Sachs analysts don’t expect Americans’ spending habits to change.

Young American men were more likely to have the accident

Analysts further predicted that there would be limited scope for an increase in workforce participation due to declining cryptocurrency prices. According to them, this is because cryptocurrencies form a small part of household wealth.

In addition, the labor participation rate of young men, which was the most susceptible demographic group, has already fully recovered to its pre-pandemic level.

While Hatzius and his team believe that cryptocurrencies alone will not alter the spending habits of Americans, they said:

“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 well incentivize the return of some workers who left the labor market during the pandemic. However, any incremental impact from recent cryptocurrency price declines will likely be modest.”

This news comes as the crypto market continues to post lackluster performance following the to collapse from Earth USD (UST) and land (MOON). At the time of writing, Bitcoin (BTC), the leading cryptocurrency by capitalization, is trading at $29,332.22 after losing 3.04% in the last 24 hours.

The altcoin market is also performing poorly, with Ethereal (ETH) changing hands at $1,968.09 after losing 2.11% on the day.

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This post Goldman Sachs says the crypto crash will have little impact on the US.

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