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<p style="text-align: justify">You can also read this news on COINTURK NEWS: <a href="https://en.coin-turk.com/feds-data-shows-slower-consumer-borrowing-in-the-us/" data-wpel-link="internal">Fed’s Data Shows Slower Consumer Borrowing in the US</a><br></p>
<p style="text-align: justify">Fed’s latest data shows that US consumers are borrowing at a slower pace, with total outstanding credit increasing by $8.9 billion in June, falling short of the expected $10 billion. According to Markus Thielen, founder of 10x Research, this slow borrowing rate, combined with rising credit card defaults, poses significant issues for the <a href="https://en.coin-turk.com/crypto-investors-anticipate-market-movements/" data-wpel-link="internal">cryptocurrency market</a>.</p> 
<h2 style="text-align: justify" id="strong-slowdown-in-consumer-debt-growth-strong"><strong>Slowdown in Consumer Debt Growth</strong></h2> 
<p style="text-align: justify">In June, revolving debt, primarily involving credit cards, decreased by $1.7 billion, marking the largest drop since early 2021. In contrast, non-revolving debt, including student and auto loans, increased by $10.6 billion, the most significant rise in the past year. The combination of reduced credit card borrowing and increased other debt types indicates a notable shift in consumer financial behavior.</p> 
<p><img loading="lazy" loading="lazy" decoding="async" class="aligncenter size-full wp-image-377969" src="https://coin-turk.com/wp-content/uploads/2024/08/ABD-Kripto-Para.png" alt="" width="952" height="584"></p> 
<p style="text-align: justify">The rising delinquency rates in debts are particularly concerning. In the second quarter of 2023, the rate of credit card payments delayed by more than 90 days reached 10.93%, the highest since 2012. Auto loan defaults also rose to 4.43%, the highest since 2021. These increases indicate that many US consumers have reached their borrowing limits, posing a challenge to the bullish narratives in the cryptocurrency market, according to Thielen.</p> 
<h2 style="text-align: justify" id="strong-impact-of-debt-delinquencies-on-the-cryptocurrency-market-strong"><strong>Impact of Debt Delinquencies on the Cryptocurrency Market</strong></h2> 
<p style="text-align: justify">The limited borrowing capacity of US consumers points to a restricted fiat-crypto ramp, crucial for new <a href="https://finance.coin-turk.com/" data-wpel-link="exclude">investments</a> in the cryptocurrency market. Thielen emphasized that the decline in consumer credit data, especially due to negative credit card debt and high default rates, signals a collapsing personal savings rate. This development restricts potential investments in cryptocurrencies.</p> 
<p style="text-align: justify">Thielen also highlighted other risks to the cryptocurrency market, such as uncertainties surrounding the upcoming US Presidential elections, a slowing economy, and waning enthusiasm for <a href="https://newslinker.co/what-is-artificial-intelligenceai/" target="_blank" rel="noopener" data-wpel-link="exclude">artificial intelligence technologies</a>. The performance of Bitcoin (BTC) and Nvidia (NVDA) reflects these broader market trends. Both assets have significantly dropped since peaking earlier in the year, mirroring broader market sentiments.</p> 
<p style="text-align: justify">At the time of writing, Bitcoin was trading around $57,000, having dropped 10% in the past seven days. Similarly, Nvidia shares reached approximately $140 in June but fell to $98, indicating the broader economic slowdown and the decline in AI hype.</p> 
<h5><span style="font-weight:bold;font-size:16px">The post first appeared on COINTURK NEWS: </span> <a href="https://en.coin-turk.com/feds-data-shows-slower-consumer-borrowing-in-the-us/" data-wpel-link="internal">Fed’s Data Shows Slower Consumer Borrowing in the US</a></h5>
<p>The post <a href="https://en.coin-turk.com/feds-data-shows-slower-consumer-borrowing-in-the-us/" data-wpel-link="internal">Fed’s Data Shows Slower Consumer Borrowing in the US</a> appeared first on <a href="https://en.coin-turk.com" data-wpel-link="internal">COINTURK NEWS</a>.</p>

Fed’s Data Shows Slower Consumer Borrowing in the US

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