A Goldman Sachs report looked at how the decline in Crypto would affect household spending and young male employment. Goldman’s analysis found there would likely be a modest effect whereby some of the young men who were invested in crypto during the boom may now return to the workforce, and liquidate some assets where they had chosen to store their wealth, due to the crypto market decline.

However they speculated the effect would be modest, and given the low percentage of household wealth that was made up of crypto, any effect on the economy would be negligible. They did add,

“Taken together, we continue to expect that tighter financial conditions will lead to a sharp slowdown in growth and spending this year, and declines in household wealth may very well incentivize some workers that left the labor market during the pandemic to return. However, any incremental impact from the recent declines in cryptocurrency prices will likely be modest.”