Bitcoin (BTC) has been trading sideways for about a month now and is outperformed by several other altcoins like Ether (ETH) and Chainlink (LINK). The cryptocurrency has also reached the lowest volatility levels since November 2018.
In addition, Bitcoin trading volume in its USDT and USD pairs decreased by 56% and 44%, while global crypto trading volumes in June were also down 49.3%, according to CryptoCompare.
While some point to these key factors as the start of a downward trend in the price of Bitcoin, there are still a few bullish scenarios to watch out for. A recent Stack Funds report found that a change in investor demographics may soon take the price of Bitcoin to new heights.
Using Coindance data, the report found that 50% of Bitcoin investors are millennials. Given that the transfer of wealth between generations is happening at a faster rate, Stack Funds believes that the newly found financial freedom of millennials could lead this young generation of investors to exert strong buying pressure on Bitcoin.
The report reads as follows:
“As the millennial generation enters the investment maturity age, we believe that this tech-savvy group would drive significant change in investor demographics, in turn, would increase the propensity for bitcoin investment. “
Bitcoin ownership by age group. Source: Stack Funds
Do Baby Boomers Buy Bitcoin?
The report also highlights the growing interest in Bitcoin and digital assets among other generations, a phenomenon that can further strengthen Bitcoin’s position as an investment asset class.
According to a survey of Canadian citizens, home ownership among baby boomers (56-76) has recently tripled. Similar results were found in a recent research document from the UK Financial Conduct Authority (FCA), which found that the ownership of Bitcoin by people over the age of 35 has increased significantly.
The shift of investment power to new generations and the growing interest in Bitcoin for older investors could help push the price of Bitcoin to new heights. However, institutions will also play an important role as they could provide the most accessible ramp for new retail and institutional investors to invest in Bitcoin.
According to the report:
“In our conservations with investors, we noted that part of this buying pressure reflects Generation X parents and baby boomers who are looking to invest in the long term for their children’s future. “
Currently, institutions of all kinds do not lack options to get involved and the same goes for those who wish to invest their retirement in BTC.
Young investors are attracted to socially responsible investments
A recent Morgan Stanley survey showed that more than 80% of investors are looking to invest in a socially conscious way, which means they prefer to invest their money in projects that can have a positive impact on the world and society.
Along with their greater technological aptitude, millennials also display increased concern over social issues such as discrimination, climate change and perhaps financial inclusion may soon become one of their focal points.
Given the potential of cryptocurrency to solve many of the problems that millennials find problematic with the current financial sector, investing in Bitcoin as a new asset class ticks all the right boxes.