Connect with us

Uncategorized

Crypto Gains Let Poor People Buy Houses, U.S. Research Finds, But Risks May Lurk

Published

on

Crypto investing may have allowed lower-income Americans to buy their own homes at a higher rate than the rest of the population, according to a paper released Tuesday by the U.S. Treasury’s Office of Financial Research.

The rise in cryptocurrency investment in recent years came with a pronounced uptick in debt — most notably mortgages — sought in the areas where digital assets activity was highest, according to the research conducted by the Treasury’s independent arm that sniffs out U.S. economic hazards. It was looking for evidence that such financial stretching may be a danger to U.S. stability, but so far the researchers found that delinquency rates in those places have remained low.

«Low-income consumers in high-crypto exposure areas are disproportionately more likely to take out a mortgage, and the average mortgage size is large relative to pre-2020 average income,» the paper concluded.

«There is little or no evidence of higher levels of distress in mortgage, auto, or credit card debt among consumers in high-crypto exposure neighborhoods,» according to the report. «If anything, delinquency rates remain relatively low.»

This potentially sunny piece of federal research could further bolster the case of incoming presidential administration officials who seek to clear a path for greater U.S. crypto adoptions. President-elect Donald Trump is expected to appoint financial regulators who favor friendly regulations and lighter enforcement in the digital assets sector.

The OFR paper cautioned that these crypto households will warrant close observation in a financial downturn to see if such stresses expose them as a risk to the U.S. mortgage market. Cryptocurrencies have remained a much more volatile investment than most other asset classes.

«An important takeaway for future monitoring is the increased debt balances and leverage among low-income households with crypto exposure,» the report noted. «Rising distress in this group could cause future financial stress, especially if exposure to these types of high-leverage, high-risk consumers is concentrated in systemically important institutions.»

The OFR’s numbers suggested a 274% increase in mortgages in high-crypto, low-income areas between 2020 and 2024, and the average mortgage balances were much higher than low-income zones with less digital assets activity. They were even significantly higher than in middle-income areas.

«Crypto sales may have supported access to larger mortgages through bigger down payments,» according to the findings.

The study relied on U.S. tax data to find crypto concentrations, and because the latest available data was from 2021, the crypto sales would likely have been at the height of the market before the industry’s 2022 collapse – meaning sales were more likely to result in significant gains. The investors apparently used those gains to back their other financial moves, including much higher purchase of homes and cars. But the OFR’s credit data was as recent as this year.

Read More: Crypto Ghosted in U.S. Treasury Department’s New Strategy on Financial Inclusion

Continue Reading
Click to comment

Leave a Reply

Ваш адрес email не будет опубликован. Обязательные поля помечены *

Uncategorized

Ethereum Surges After Holding $2,477, Fueled by Very Heavy Trading Volume

Published

on

By

Global economic tensions and trade disputes continue to influence cryptocurrency markets, with ETH showing resilience despite broader market uncertainty.

The second-largest cryptocurrency is currently navigating a critical technical zone between $2,500-$2,530, which analysts identify as immediate resistance that must be overcome for continued upward movement.

Institutional interest remains strong, with spot Ethereum ETFs recording consecutive days of positive inflows, signaling growing confidence from larger investors despite the recent volatility.

Technical Analysis Highlights

  • 24-hour ETH price action revealed a substantial 3.5% range ($99.85).
  • Sharp sell-off during midnight hour saw price plummet to $2,477.40, establishing a key support zone.
  • Extraordinary volume (291,395 units, nearly 3x average) confirmed the significance of the support level.
  • Buyers stepped in at the $2,467-$2,480 support band, confirmed by high-volume accumulation during the 08:00-09:00 period.
  • Recent price action shows bullish momentum with ETH reclaiming the $2,515 level.
  • Potential higher low pattern suggests the correction may have found its bottom.
  • $2,520-$2,530 area remains the immediate resistance to overcome for continued upward movement.
  • Significant bullish surge at 13:35 saw price jump from $2,515.85 to $2,521.79, accompanied by exceptional volume (5,839 units).
  • Sharp reversal occurred at 14:00, with price dropping 5.07 points to $2,508.02 on heavy volume (4,043 units).
  • Hourly range of 14.46 points ($2,508.02-$2,522.48) demonstrates market indecision.

External References

Continue Reading

Uncategorized

XRP Plunges Below $2.30 Amid Heavy Selling Pressure

Published

on

By

Global economic tensions are weighing heavily on cryptocurrency markets as XRP experiences a significant correction amid heavy selling pressure.

The recent announcement of potential 50% tariffs on European Union imports by the US government has triggered widespread market uncertainty, with XRP falling alongside most major cryptocurrencies despite Bitcoin recently reaching new all-time highs.

Technical analysts point to critical support at the $2.25-$2.26 range, with market watchers warning that a break below this level could trigger deeper corrections toward the $1.55-$1.90 zone.

Meanwhile, institutional interest remains strong with Volatility Shares launching an XRP futures ETF and leveraged ETF inflows surging despite the price dip, suggesting Wall Street continues accumulating positions during market weakness.

Technical Analysis Highlights

  • XRP underwent a notable 3.46% correction over the 24-hour period, with price declining from $2.361 to $2.303, creating an overall range of $0.084 (3.57%).
  • The most significant price action occurred during the midnight hour (00:00), when XRP plummeted to $2.297 on exceptionally high volume (37.1M), establishing a strong volume-based support zone.
  • A secondary sell-off at 08:00 saw price touch the period low of $2.280 with the highest volume spike (39.9M), confirming a double-bottom formation.
  • In the last hour, XRP experienced significant volatility with a recovery attempt following the earlier correction.
  • After reaching a low of $2.297 at 13:11, price formed a base around $2.298 before staging a substantial rally beginning at 13:27, peaking at $2.307 at 13:36-13:39 with exceptionally high volume (627K-480K).
  • This bullish momentum created a clear resistance zone at $2.307, which was tested multiple times.
  • The final 15 minutes saw profit-taking pressure emerge, with price retracing to $2.300, establishing a short-term support level that aligns with the psychological $2.30 threshold.

External References

Continue Reading

Uncategorized

Bitcoin Drops Below $107.5K as Trump Tariff Threat Triggers Crypto Sell-Off

Published

on

By

Bitcoin’s recent pullback has established strong volume-based resistance near $108,300, with support forming in the $106,700-$107,000 zone.

The correction accelerated with a notable price surge from $107,373 to $107,671 between 13:06-13:36, followed by a sharp reversal.

Technical analysis suggests Bitcoin is now trading within a compression zone, trapped between two major fair value gaps that will determine the upcoming market direction.

If bulls reclaim the $109K to $110K area, price could push toward resistance beyond $112K, while a break below $107,000 might test liquidity around $106K.

Technical Analysis Breakdown

  • The decline accelerated during the 22:00-23:00 hour on May 24th with exceptionally high volume (16,335 BTC), establishing a strong volume-based resistance near $108,300.
  • Support has formed in the $106,700-$107,000 zone where buyers emerged during the 09:00-10:00 period on May 25th, though recovery attempts have been modest with price consolidating around $107,500.
  • The overall technical structure suggests a short-term bearish trend with potential for further consolidation before directional clarity emerges.
  • Bitcoin experienced significant volatility with a notable price surge from $107,373 to $107,671 between 13:06-13:36, followed by a sharp reversal that saw prices decline to $107,393 by 14:00.
  • The most substantial price movement occurred during the 13:35 minute candle where BTC jumped nearly $150 with exceptionally high volume (148.76 BTC), establishing temporary resistance around $107,630.
  • Support formed near $107,400 where buyers emerged during the final minutes of the period, though the overall technical structure suggests continued consolidation within the broader correction from the $109,239 high.

External References

Continue Reading

Trending

Copyright © 2017 Zox News Theme. Theme by MVP Themes, powered by WordPress.