Crypto Exposure and Household Financial Conditions

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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. The authors find that 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. Even so, as of Q1 2024, the increased use of leverage among these groups has not resulted in higher delinquency rates (Brief no. 24-08).