FX.co ★ Crypto wealth lifts house prices, study finds

A group of American and British researchers have discovered a striking pattern. Based on their observations, a rally in cryptocurrencies boosts home prices in the United States.

Specialists have documented their studies in the paper entitled "The effects of cryptocurrency wealth on household consumption and investment". To analyze the impact of the cryptocurrency industry on the US economy, the researchers used data on financial transactions made by 60 million Americans between 2010 and 2023.

A stunning rally in Bitcoin contributed to wealth growth in some states, particularly in parts of California, Nevada, and Utah. The analysts found that home prices in crypto-wealthy regions grew 43 basis points faster, boosting the median house price by $2,000 over a year.

The report also stated that every dollar earned on digital currencies pushed the median home price up by 15 cents over the next three months. The researchers revealed that 5% of households that withdrew at least $5,000 from crypto accounts bought their first houses.

According to the study, Americans take cryptocurrencies seriously and spend profits from digital asset transactions wisely. "Our estimates suggest that household spending out of crypto gains is more like the patterns we see from traditional equity investments," Darren Aiello, one of the authors of the paper, said.