Cryptocurrency is witnessing a tough phase globally, and ups and downs have always been part of its journey. Crypto has not fallen for the first time but for the fifth time in history. All the falls led to an increase in price-market capitalization. So, once again, history has repeated itself. Well, it’s a loss for many, but some still believe that it will rise again.
So, let’s look at what Goldman Sachs says about the U.S. economy and the Crypto crash.
What Goldman Sachs has to Say?
The leading e Goldman Sachs Group, Inc. is a global investment banking, securities, and investment management firm that reacted to the Crypto failure. So, the group said that the drop in cryptocurrency prices would not affect the U.S. economy.
New York City-based multinational, in the report, said that the fall of cryptocurrency is quite small compared to the net worth of America’s household and thus doubtful to generate severe harm.
They further added that we estimate that U.S. households possess about one-third of the global crypto market. If so, the current downhill is very little compared to U.S. household net worth, which was $150 trillion as of last year. We, therefore, anticipate any drag on aggregate spending from the current falls in cryptocurrency prices to be very miniature as well.
“This [the downfall] has prompted questions about whether this drop in wealth might affect spending and labor supply in the U.S.,” the note said.
They further stated that the U.S. labor force participation rate would be low because the labor force participation rate of younger men—who mostly hold cryptocurrencies—has already fully recovered to its pre-pandemic level.
What Led to Turbulence in Cryptocurrency Value?
Everyone knows that the cryptocurrency market saw a huge fa,l recently. Bitcoin is the largest digital element by market cap and currently trading for lower than $26,000. However, the value is 57.83% lower than its November 2021 all-time high of $68,789.63.
Crypto was making advancements in every field by launching crypto trading bots, and it is still on its way to rising again.
Su Zhu of Three Arrows Capital tweeted that LUNA’s failure was due to its execution, not its fundamental value proposition. However, Zhu proudly shows the #LUNA hashtag on his Twitter profile.
How Will Crypto Make a Comeback?
There are many interesting crypto predictions to watch out for In 2022 as it may believe that the industry has seen many ups and downs and still come back stronger.
The great news is that despite the downfall, the many investors are not panicking as they were aware of the scenario revolving around Luna and Terra. Many investors were withdrawing money. Even after a rough week, the market has overcome the shock and gradually returned and learned from the mistakes.
In Last Words
Crypto has seen its share of ups and downs, but the industry has many advantages. With nearly 12,000 different kinds of cryptocurrency, the sector will come back more reliable and strong and learn from its mistakes. So, keep reading to know every update about cryptocurrency and crypto crash here!
