Brief: Crypto Exposure and Household Financial Conditions

Office of Financial Research sent this bulletin at 11/26/2024 09:52 AM EST

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Crypto Exposure and Household Financial Conditions

Authors: Samuel Hughes, Francisco Ilabaca, Jacob Lockwood, Kevin Zhao

A new OFR Brief answers the question: Are crypto asset gains leading to households taking on more leverage? This brief analyzes the potential for systemic financial risks arising from household balance sheet changes because of crypto exposure. Zip codes with the highest crypto exposure in 2021 saw the largest increase in mortgage and auto loan originations and outstanding balances over subsequent years. As of Q1 2024, the increased use of leverage among these groups has not resulted in higher delinquency rates.

Read the Brief

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