$1,760,000,000,000 in Americans’ Savings Burned Since 2020 – Credit Card Debt Hit ATH

It’s been just reported the fact that US people’s savings have burned since 2020. The credit card debt managed to hit a new ATH.

Recent consumer data has revealed that Americans have depleted their savings by an astonishing $1.76 trillion since 2020. The Federal Reserve reports that between 2020 and 2021, Americans accumulated a total savings of $2.3 trillion.

However, as per the latest numbers from the U.S. Department of Commerce and Wells Fargo, shared by MacroEdge chief economist Don Johnson, the current savings balance has reduced significantly to $533 billion.

Additionally, the Federal Reserve Economic Data (FRED) system indicates that the percentage of personal savings as compared to disposable personal income dropped to 4.6% in May of this year.

That’s well below the historical average of 8.9%.

Recent reports reveal a significant increase in the use of credit cards by US citizens. The data released by the Federal Reserve Bank of New York indicates that American consumers owe a staggering $986 billion on their charge cards.

Wells Fargo economist Shannon Seery warns that this trend makes Americans more susceptible to potential future economic turbulence.

“Households have been able to continue to spend at elevated rates, and that sustained level of demand is helping stave off a US recession.

[But] acquiring less in savings will ultimately leave US households more vulnerable to economic shock and could potentially position them worse off during an eventual economic contraction.”

According to economist and crypto analyst Alex Krüger, Bitcoin (BTC) is poised for a potential surge and has ample room for growth.

Krüger recently shared his optimistic outlook in a Wolf of All Streets stream, emphasizing the significance of the BlackRock spot BTC exchange-traded fund (ETF) application.

He also says that technically speaking, Bitcoin has a liquidity air pocket between $31,000 and $37,000 from when crypto markets collapsed last year during the disintegration of the Terra ecosystem.

If BTC convincingly enters that range, Krüger says a rather dramatic rally could ignite.