Five of the largest American banks lost over $230 billion in market value between January 1 and December 5, 2022, according to a recent report by BitStacker, a cryptocurrency advisory website.

According to the report, the market capitalisation of Bank of America, JP Morgan Chase, Wells Fargo, Goldman Sachs, and Citigroup declined in the review period.

Citigroup was the most severely impacted of the major American banks in 2022. As of December 5, 2022, the company’s market capitalisation has decreased from $119.83 billion on January 1 2022, to $88.39 billion. 

This was a significant value decrease of 26.24 per cent due to a $31.44 billion decline in the bank’s market capitalisation.

However, the Bank of America Corporation suffered the most market capitalisation drop. 

At the beginning of the year, the company had a market cap of $364.11 billion, but by early December, this had dropped to just $276.53 billion resulting in a 24.o5 per cent drop in the bank’s market cap.

JP Morgan Chase, the largest bank in the country, trailed Bank of America closely, as its value decreased from $467.97 billion to $385.33 billion. Between January and December 2022, JP Morgan Chase lost 82.64 billion, 17.7 per cent of its market value.

Market capitalisation for Wells Fargo fell by $24.95 billion (13.5 per cent). The brand had a value of $191.31 billion at the start of the year, but by December 5, it had dropped to only $166.36 billion.

Goldman Sachs suffered the least fall in market capitalisation among the top five banks. The company’s market valuation only dropped by $1.8 billion, 1.41 per cent of its value, in 2022.

The study tracked the market capitalisation of these U.S. banks over the course of a year, highlighting the country’s current economic uncertainties 

Speaking on the study, Kris Lucas, a BitStacker.com analyst, linked the banks’ losses to ongoing inflation and interest rate hikes, noting that the data shows a concerning reality of the U.S. economy’s deterioration.

“The research showed that the five leading U.S. banks had experienced huge losses with hundreds of billions of dollars wiped off their value,” Mr Lucas explained. “With skyrocketing inflation and numerous interest rate hikes, it presents a worrying picture of the U.S. economy.”