Bitcoin Miami 2023: Are Crypto-Backed Mortgages the Future of Real Estate? (10:29)
American households are feeling the squeeze, and Goldman Sachs says the pressure is structural, not temporary.
The Federal Reserve Bank of New York released a new report that shows credit card balances jumped by $44 billion in the fourth quarter of 2025, bringing total credit card debt to $1.28 trillion. Mortgage balances rose even faster, climbing $98 billion to reach $13.2 trillion.
Taken together, the figures point to a broader issue that Goldman Sachs chief U.S. economist David Mericle is calling an “affordability problem.”
Related: Goldman issues warning about post-halving bitcoin price projections
Housing costs are straining household finances
In a video on Feb. 10, Mericle said the biggest pressure point is owner-occupied housing.
"It’s really the cost of financing your own single family owner-occupied housing that stands out by historical standards. Prices have risen a lot. Now mortgages have risen as well and both the down payment as a share of income and the mortgage financing cost as a share of income are now both quite high by historical standards.”
But housing is not just another line item in a monthly budget.
Mericle emphasized that for many Americans, especially lower-income households, homeownership is often the primary, and sometimes only, way to build wealth.
Beyond finances, housing also serves as a gateway to social mobility, access to stronger school systems, and better job opportunities.
When homeownership becomes harder to achieve, it doesn’t just change spending habits. It can alter the entire wealth-building journey.
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Bitcoin as an alternative wealth path
As traditional pathways like homeownership grow more expensive, younger Americans are increasingly exploring alternative assets.
Over the past decade, Bitcoin (BTC) has been framed by supporters as a hedge against expanding credit and rising debt levels.
During a recent interview with TheStreet Roundtable, SALT Lending’s chief revenue officer Hunter Albright described Bitcoin less as a speculative technology and more as a practical tool for wealth preservation, calling it “a store of value right now.”
Albright pointed to generational challenges. He noted that Gen Z faces significant barriers to entering the housing market. For previous generations, buying a home was often the first major step toward financial security. Today, that step feels out of reach for many.
Crypto-backed lending has also gained traction among long-term Bitcoin holders. Rather than selling their assets, some investors borrow against their Bitcoin to access liquidity. According to Albright, this allows users to tap fiat currency “for what they need, when they need it,” without liquidating their long-term holdings.
While Bitcoin remains far more volatile than housing or equities, its fixed supply has made it appealing to investors concerned about currency debasement and expanding debt.
A generational divide in financial trust
The shift toward digital assets also reflects a broader trust gap.
A January 2026 OKX survey of 1,000 Americans found that 40% of Gen Z and 41% of Millennials rated their trust in crypto platforms at 7 or higher on a 10-point scale. Among Baby Boomers, just 9% expressed similar confidence.
Traditional finance tells the opposite story. Nearly three-quarters of Boomers reported high trust in banks, while only about one in five younger respondents shared that sentiment.
Even as credit card and mortgage balances continue to rise, spot Bitcoin exchange-traded funds (ETFs) have attracted steady long-term capital over the past year. At press time, the total assets under management, or AUM, for crypto ETFs stood at $108.64 billion, as per CoinMarketCap.
AUM in an ETF represents the total market value of all securities the fund holds on behalf of investors.
Despite recent volatility and some outflows in late 2025, the total AUM pointed at sustained long-term capital in the space.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments are highly volatile and risky. Always conduct your own research before making any investment decisions.
Related: BlackRock shares 2026 shocking crypto outlook
