Gen Z millionaires are rushing into crypto—and they blame the risky bet on FOMO. Fear of missing out |
Gen Z millionaires are rushing into crypto—and they blame the risky bet on FOMO. Fear of missing out
Cryptocurrency has long attracted younger investors with its promise of outsized returns outside of traditional finance. Yet despite well-documented warnings about its volatility, wealthy Gen Z and Millennials are embracing the asset class at rates far exceeding older generations.
Among affluent young investors—those with between $100,000 and $999,999 in assets—48% report holding cryptocurrency, according to a new report from the CFA Institute. That’s nearly double the share of Gen X and baby boomers in the same wealth bracket, only about a quarter of whom own crypto.
The pattern holds at higher wealth levels, too. Among Gen Z and Millennial millionaires, 50% hold crypto, compared with just 33% of their parents and grandparents.
And what’s driving it? Roughly 44% of Gen Z and 49% of Millennials say their decision to invest in crypto is influenced by fear of missing out—known as FOMO.
Big potential, big risk: Bitcoin’s value has halved in recent months
In recent months, the bet is not looking as enticing as it once was.
After hitting a record high of $124,000 in October, Bitcoin has fallen to roughly $66,000—a drop of about 47%—rattling portfolios and testing conviction among even its most enthusiastic........