Why the $2 trillion crypto market crash won’t kill the economy
Francesco Carta Fotografo | Moment | Getty Images
Carnage in the crypto market won’t let up, as token prices plummet, companies lay off employees in waves, and some of the most popular names in the industry go belly up. The chaos has spooked investors, erasing more than $2 trillion in value in a matter of months — and wiping out the life savings of retail traders who bet big on crypto projects billed as safe investments.
The sudden drop in wealth has stoked fears that the crypto crash might help trigger a broader recession.
The crypto market’s sub $1 trillion market cap (which is less than half that of Apple’s) is tiny compared to the country’s $21 trillion GDP or $43 trillion housing market. But U.S. households own one-third of the global crypto market, according to estimates from Goldman Sachs, and a Pew Research Center survey also found that 16% of U.S. adults said they had invested in, traded, or used a cryptocurrency. So there…