The proportion of low-income households in the United States using cryptocurrency speculation to borrow money to buy houses has increased significantly. The Ministry of Finance warns that this may become a fuse for financial crisis.

The latest research from the U.S. Treasury Department shows that more and more low-income households are using cryptocurrency investments to make down payments on their mortgages, and debt levels are gradually expanding. In this regard, the report pointed out that although the default rate of these loans is still low, such highly leveraged loans may introduce risks when the economic environment deteriorates. (Synopsis: Microstrategy increases the position again $5.4 billion to buy 55,000 BTC: BTC 97,000 is not expensive!) (Background added: Arthur Hayes: Bull Market should remain rational and cash out in a timely manner, BTC looks at $250,000 by the end of next year) Under the CryptocurrencyBull Market, which was led by BTC in November, many crypto world investors came to their spring, through Spot holding, contract leverage to obtain high returns. However, according to a recent study by the U.S. Department of the Treasury, among low-income households, the group involved in cryptocurrency investment is higher, and the number of applications and outstanding amounts of their home loans and auto loans have increased significantly, which seems to be a more leveraged financial allocation after the investment is profitable, which makes the author vaguely feel a little uneasy. According to the economists of the US Treasury Department's Financial Research Office released a research report on cryptocurrency yesterday (26), the report pointed out that more and more low-income households are using the profits from cryptocurrency investments to pay their mortgages, and they may sell the proceeds of cryptocurrency to pay higher down payments. to get a larger mortgage line. If they can consistently keep yields high, that's good, but if the fear of missing out sentiment results in huge losses, larger mortgage lines could put these low-income households at higher financial risk. In addition, the study also showed that the proportion of low-income households with mortgages in high-exposure areas of Cryptocurrency increased by more than 250%, and the average mortgage balance (outstanding amount) soared from $172,000 in 2020 to $443,000 in 2024, an increase of 150%. Note: The study used tax data to determine which regions had higher exposure to encryption assets, and defined "high encryption exposure" as postal areas where at least 6% of households reported cryptocurrency-related taxes: The mailing area with the highest cryptocurrency exposure saw the largest increase in mortgage and auto loan applications and outstanding amounts in subsequent years. Potential risks due to high leverage Data analysis pointed out that the "mortgage-to-income ratio" of these highly exposed cryptocurrency areas is significantly higher than the recommended level, indicating that there is a potential risk to their financial stability, in this regard, the researchers said: High cryptocurrency exposure may lead to changes in financial behavior, further triggering financial instability Mortgage-to-Income Ratio (Mortgage-to-Income Ratio, MTI) is an important measure of the affordability of a household or individual mortgage, which is defined as: Mortgage to income ratio = monthly mortgage expenditure ÷ × 100% of total monthly income. It is generally believed that the mortgage-to-income ratio should be controlled below 28%. While default rates are still low in these regions, the study warns that high leverage could pose risks in a deteriorating economic environment, so trends in debt balances and leverage ratios for such households need to be closely followed in the future: If the financial distress of this group continues to increase, it may trigger financial stress in the future, especially if the exposure of such highly leveraged, high-risk consumers is concentrated in systemically important institutions. Of course, we are not saying that people who invest in cryptocurrency are at higher risk, but it is true that the level of debt in these regions has increased, and if the cryptocurrency market crashes, it is indeed likely to increase the instability of financial markets. Related reports Who is selling BTCprice drops 90,000? Glassnode: $7.6~$88,000 is the key level of short-term backtesting BTCprice drops $90,800 The biggest drop since Trump was elected! Analyst: The market leverage is too heavy, but it is still a healthy pullback Brazilian lawmakers propose to include "BTC in the national reserve": plan to invest $17.7 billion in stockpiling BTC "The proportion of low-income households in the United States "relying on Cryptocurrency Speculation loans to buy houses" has increased significantly, and the Ministry of Finance warns: It may become the fuse of the financial crisis" This article was first published in BlockTempo "Dynamic Trend - The Most Influential Block Chain News Media".