Data shows that changes in investor demographics may push Bitcoin prices to new highs

Bitcoin (BTC) has been sideways for about a month, and several other altcoins such as Ethereum (ETH) and Chainlink (LINK) have performed better than Bitcoin. Since November 2018, Bitcoin’s volatility has reached its lowest level.

In addition, according to CryptoCompare data, bitcoin’s USDT and USD transaction pair transaction volumes fell by 56% and 44%, respectively, while the global cryptocurrency transaction volume also fell by 49.3% in June.

Although it is pointed out that these key factors are the beginning of a downward trend in Bitcoin prices, there are still some bullish conditions that deserve attention. A recent report by Stack Funds found that changes in the investor demographics may soon push Bitcoin prices to new highs.

This report uses data from Coindance to find that 50% of Bitcoin investors are millennials. Given that the rate of wealth transfer between the two generations is accelerating, Stack Funds believes that the newly acquired financial freedom of the millennial generation may cause this generation of young investors to bring huge buying pressure on Bitcoin.

“As millennials reach the peak of investment maturity, we believe that this technology-savvy group will drive a major shift in the demographic structure of investors, thereby increasing the propensity to invest in bitcoin.”


Proportion of Bitcoin holdings by age source: Stack Funds

Are baby boomers buying Bitcoin?

The report also pointed out that the interest of other generations in Bitcoin and Crypto assets is increasing. This phenomenon can further consolidate the status of Bitcoin as an investment asset class.

According to a survey of Canadian citizens, the percentage of bitcoin holders of baby boomers (56 to 76 years old) has recently tripled. The Financial Conduct Authority (FCA) of the United Kingdom produced similar results in a recent research report, which found that the proportion of people over the age of 35 holding Bitcoin has increased significantly.

The transfer of investment power to the new generation, and the increasing interest of older investors in Bitcoin, may help push Bitcoin prices to new heights.

However, institutions will also play an important role because they can provide the most convenient entry point for new retail investors and institutional investors to invest in Bitcoin.

According to the report:

“In the protection of investors, we have noticed that part of the buying pressure reflects the generation X parents and baby boomers wanting to make long-term investments for their children’s future.”

At present, there are many options for various institutions to participate, and it is also true for those who want to invest their pensions in Bitcoin.

Younger investors tend to invest socially

A recent survey by Morgan Stanley shows that more than 80% of investors want to invest in a socially conscious way, which means that they are more willing to invest money to be positive for the world and society Affected items.

Millennials not only have a stronger technical talent, but also show more and more attention to social issues such as racial discrimination and climate change. Perhaps financial inclusion may soon become one of their focuses.

Given the potential of cryptocurrencies to solve many of the problems found by millennials in the current financial industry, it is entirely correct to invest in Bitcoin as a new asset class.

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