Bitcoin Is for the Young and Gold for the Old, Says JPMorgan
Bitcoin (BTC) and gold appear to be the popular asset choices for investors depending on their age group. Haven assets are seeing significant price increases as worry mounts over the future of global economies amid the ongoing coronavirus epidemic.
COVID-19 Fears Pushing Investors to Bitcoin and Gold
According to Bloomberg analysts, investors are flocking to Bitcoin and gold as hedges against perceived weaknesses in the equities market. Interestingly, older investors are increasing their exposure to gold while younger traders are ‘stacking sats.’
Gold has been the de facto haven asset of choice for the ‘Baby Boomer’ generation and the trend is not slowing down. For millennials, Bitcoin and tech stocks appear to be the preferred investment vehicles.
Some crypto pundits predict that the estimated $68 trillion wealth transfer from boomers to millennials over the next 25 years will cause a massive price increase for Bitcoin. According to crypto research platform Messari, a 1% allocation of institutional funds to BTC could see the largest crypto by market capitalization reach a market price of $50,000.
The increasing appetite for alternative investments comes as worries over the long-term impact of the COVID-19 pandemic persists. Despite attempts to return to some semblance of normal life, several industries are still reeling from the effects of the shutdowns occasioned by the virus.
As previously reported by BTCManager, both retail and whale wallet ownership of Bitcoin is on the rise. According to data from on-chain analytics platform Glassnode, the number of addresses with at least 0.1 BTC, 1 BTC, and 1,000 BTC is at all-time highs.
Haven Assets on a Tear Against Weakening USD
With renewed investment interest in haven assets, the likes of Bitcoin and gold have been the rise in recent weeks. Despite losing ground in mid-March amid the Black Thursday panic that caused massive selloffs across all investment markets, both assets have posted significant recoveries.
Bitcoin is currently at its highest level in 2020 and is currently trading above $11,000 for the first time in over a year. Gold has risen to $2,000 per ounce for the first time with silver also recording massive price gains.
All of these price gains are coming against a continued slippage in U.S. dollar (USD) value due to constant money printing by the Federal Reserve. Indeed, investors who bought BTC with their $1,200 stimulus checks back in April is now valued at over $2,000, according to data from on-chain analytics platform CoinMetrics.