{"id":18965,"date":"2024-11-27T16:24:40","date_gmt":"2024-11-27T14:24:40","guid":{"rendered":"https:\/\/forklog.com\/en\/study-reveals-increased-mortgage-borrowing-among-us-cryptocurrency-holders\/"},"modified":"2024-11-27T16:24:40","modified_gmt":"2024-11-27T14:24:40","slug":"study-reveals-increased-mortgage-borrowing-among-us-cryptocurrency-holders","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/study-reveals-increased-mortgage-borrowing-among-us-cryptocurrency-holders\/","title":{"rendered":"Study Reveals Increased Mortgage Borrowing Among US Cryptocurrency Holders"},"content":{"rendered":"<p>Proceeds from cryptocurrency sales are enabling low-income households to secure larger mortgage loans, thereby introducing financial risks. This conclusion was shared by researchers from the <span data-descr=\"Office of Financial Research\" class=\"old_tooltip\">OFR<\/span> in a recent report.\u00a0<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">A new OFR Brief examines the relationship between crypto exposure and the increase in household debt since the COVID-19 pandemic.<a href=\"https:\/\/t.co\/0h1aCfqhFh\">https:\/\/t.co\/0h1aCfqhFh<\/a><\/p>\n<p>\u2014 Office of Financial Research (OFR) (@OFRgov) <a href=\"https:\/\/twitter.com\/OFRgov\/status\/1861423032532713841?ref_src=twsrc%5Etfw\">November 26, 2024<\/a><\/p><\/blockquote>\n<p> <script async=\"\" src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>The researchers analyzed credit and taxation data in the US from 2020 to 2024. Taxpayers were categorized by annual income: low income was considered $50,000 or less, middle income $50,000\u2013100,000, and high income over $100,000.\u00a0<\/p>\n<p>Regions were grouped by postal codes and classified by the degree of cryptocurrency usage: regions with low usage were those where less than 2% of households mentioned cryptocurrencies in tax returns; medium usage was 2\u20136%; high usage was more than 6%.<\/p>\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/lh7-qw.googleusercontent.com\/docsz\/AD_4nXde8mVe99p5-TsypILs-wkKAzYLt0aYkqUPGTVbzd9oOCb-uBJt1Gx02Y2aWG-LUE4EQlsI1H6b4mrUX0BGXXY1KnTQ2UM1pNE9ltf4mejgviwJGiJE2dp3EJV8TxcoZ067nK3dog?key=fJrdc2c-OgN20mcvuGYDnr-g\" alt=\"Study: Cryptocurrency Holders in the US Take More Mortgages\"\/><figcaption class=\"wp-element-caption\">Distribution of regions by cryptocurrency usage among low-income households in 2021. Data: <a href=\"https:\/\/www.financialresearch.gov\/briefs\/files\/OFRBrief-24-08-crypto-exposure-and-household-financial-outcomes.pdf\">OFP<\/a>.<\/figcaption><\/figure>\n<p>According to the researchers&#8217; findings, cryptocurrencies are prompting less affluent Americans to take on more loans\u2014in regions with high cryptocurrency popularity, the number of low-income households taking out mortgages or car loans increased by 250% compared to 2020. The average loan balance rose by 150%.<\/p>\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/lh7-qw.googleusercontent.com\/docsz\/AD_4nXcaQXauVm9rwwfK-JuBCwGWKz2aN4kIf4eT0c535NNvkFH4DHjtlkkOtbdsTt5Q06rJY8GxRfWS9ru9TDt7MAT0mIv8n9HMua9wOwRMPYyUBnned4WWMRG8dy3JtAV_j2PeFtfIBA?key=fJrdc2c-OgN20mcvuGYDnr-g\" alt=\"Study: Cryptocurrency Holders in the US Take More Mortgages\"\/><figcaption class=\"wp-element-caption\">Share of mortgage participants among households and loan balances for 2020 and 2024. Data: <a href=\"https:\/\/www.financialresearch.gov\/briefs\/files\/OFRBrief-24-08-crypto-exposure-and-household-financial-outcomes.pdf\">OFP<\/a>.<\/figcaption><\/figure>\n<p>The debt-to-income ratio in such households, according to the report, significantly exceeds recommended levels.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\"><p>\n<cite>\u201c[Cryptocurrency usage] may be associated with behaviors that contribute to financial instability,\u201d the researchers noted.<\/cite><\/p><\/blockquote>\n<p>Although during the period under review, the number of payment delinquencies in this group did not exceed the norm, the researchers emphasized that under stress, the number of loans could become a vulnerability:<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\"><p>\n<cite>\u201cIncreasing stress in this group could trigger future financial stress, especially if the exposure of such consumers [\u2026] is concentrated in systemically important institutions.\u201d<\/cite><\/p><\/blockquote>\n<p>As reported in the Crypto Wealth Report 2024, since August 2023, the number of crypto millionaires <a href=\"https:\/\/u1f987.com\/en\/news\/crypto-millionaires-surge-by-95-amid-2024-bull-run\">increased<\/a> by 95%.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Proceeds from cryptocurrency sales are enabling low-income households to secure larger mortgage loans, thereby introducing financial risks. This conclusion was shared by researchers from the OFR in a recent report.\u00a0 A new OFR Brief examines the relationship between crypto exposure and the increase in household debt since the COVID-19 pandemic.https:\/\/t.co\/0h1aCfqhFh \u2014 Office of Financial Research [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":18964,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"","news_style_id":"","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[167,26],"class_list":["post-18965","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-research","tag-usa"],"aioseo_notices":[],"amp_enabled":true,"views":"15","promo_type":"","layout_type":"","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/18965","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=18965"}],"version-history":[{"count":0,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/18965\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/18964"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=18965"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=18965"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=18965"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}