Research from the US Treasury reveals that low-income households with significant cryptocurrency investments are increasingly taking out larger mortgages and auto loans. The report indicates a notable rise in mortgage origination and balances within these demographics, particularly in areas with high crypto exposure. Low-income households in such regions have witnessed a 250% increase in the percentage of households engaging with crypto and a staggering 150% rise in average mortgage balances from $172,000 in 2020 to roughly $443,000 in 2024. Despite higher debt-to-income ratios, delinquency rates remain low, suggesting temporary stability. Researchers warn, however, that the increasing leverage among these households poses potential financial risks amid adverse economic conditions. The study highlights a concerning trend where increased debt burdens could lead to future financial distress, especially if systemic financial institutions are impacted by the concentration of high-leverage consumers.

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