- Low-income households in high-crypto areas see a 150% rise in mortgage balances.
- Elevated debt-to-income ratios in these areas raise financial stability concerns.
- Household debt hits $17.9 trillion in Q3 2024.
The United States (US) Treasury's Office of Financial Research has reported that lower-income households are increasingly using cryptocurrency gains for mortgages.
Researchers Samuel Hughes, Francisco Ilabaca, Jacob Lockwood and Kevin Zhao conducted a study that reveals a significant change in borrowing patterns among low-income households in areas with high crypto exposure.
Mortgage activity in these areas has significantly increased. The percentage of low-income households with mortgages has risen by 250%. The average mortgage balance has surged from about $172,000 in 2020 to $443,000 in 2024, a 150% increase.
In the study, “high-crypto” zip codes are defined as those where over 6% of households report a crypto-related tax event. Data indicates that in many regions, auto loan originations and outstanding balances have increased significantly.
The trend raises concerns about financial stability, as the household's mortgage debt-to-income ratios in these areas seem to exceed the recommended levels. However, delinquency rates in cryptocurrency-exposed areas are quite low, with little or no evidence of near-term financial stress.
Experts warn that high leverage levels create risk in an economic downturn or during a cryptocurrency market collapse. The report emphasized the need to monitor finance and leverage in low-income households with much crypto exposure.
Q3 2024 advisor pulse survey
US household debt is at an all-time high, reflecting the growing interest in digital assets among financial advisors and clients. Total US household debt reached a record $17.9 trillion in Q3 2024, as the Federal Reserve Bank of New York reported. This rise is mainly due to increased balances in mortgages, auto loans, credit cards and student loans.
A recent survey by the Digital Assets Council of Financial Professionals (DACFP) and Franklin Templeton Digital Assets shows a notable change in financial professionals' attitudes toward cryptocurrencies.
The Q3 2024 Advisor Pulse Survey gathered responses from 619 financial professionals, of whom 61% serve clients with assets between $500,000 and $3.5 million. The survey revealed positive trends in cryptocurrency integration into wealth management.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks

Crypto Today: BTC, ETH, and XRP lead $1.4B capitulation on Black Monday as FTX denies $2.5B claims
Cryptocurrencies nosedived over the weekend, shedding over $300 billion since Friday. What some traders on social media are terming crypto’s Black Monday, losses come after an initial positive decoupling on Thursday, when US stocks crashed after China announced 34% retaliatory tariffs.

Bitcoin hits new yearly low below $75,000 as global trade war escalates
Bitcoin price extends its fall by 4% on Monday after correcting near 5% the previous week. The global trade war escalated, wiping out 452,976 leveraged traders and causing a total liquidation of $1.39 billion from crypto markets in the last 24 hours.

Dogecoin shatters $0.15 support as ‘Black Monday’ bloodbath fears surge
Dogecoin tumbles over 10% on Monday, slashing $3.73 billion from its market capitalization to $19.78 billion. CNBC host Jim Crammer warns of global markets’ bloodbath if US President Donald Trump stays intrasigent.

Solana Price Forecast: Bears gain momentum as SOL falls below $100
Solana (SOL) extends its loss by over 7% and falls below the $100 mark at the time of writing on Monday after crashing 15.15% last week. Coinglass data shows that SOL’s leveraged traders wiped out nearly $70 million in liquidations in the last 24 hours.

Bitcoin Weekly Forecast: Tariff ‘Liberation Day’ sparks liquidation in crypto market
Bitcoin (BTC) price remains under selling pressure and trades near $84,000 when writing on Friday after a rejection from a key resistance level earlier this week.

The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.