Markets
Baby Boomer Wealth Transfer to Send $20 Trillion in Crypto – This Analyst Sees Bitcoin at $600,000 – DL News
- Baby boomers are expected to transfer $84 trillion to their heirs.
- A quarter of this wealth could be invested in crypto, according to market analyst Noelle Acheson.
- This would push the price of Bitcoin to $600,000.
Sooner or later, baby boomers will pass on their wealth to younger generations.
And when that happens, you can bet young people will be buying cryptocurrencies.
So says Noelle Acheson, former head of market research at Genesis Global Trading.
Wealth transfer could allow $20 trillion to be invested in crypto, Acheson wrote in its newsletter, “Crypto is Macro Now.”
10 trillion dollars for Bitcoin and Ethereum
Bank of America find in a survey last week, approximately $84 trillion will flow from baby boomers to Generation X and millennials over the next 10 years.
And these younger generations have very different investment profiles, the report says.
Only 4% of wealthy Americans – defined as having more than $3 million in assets – over the age of 44 believe cryptocurrencies have greater growth potential than stocks and bonds.
But 28% of their younger peers said crypto would outperform these traditional investments.
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“If the heir class follows the model suggested by the survey, 24% of the wealth transfer (28% of the youngest group prefer crypto to stocks and bonds, minus 4% of the older group) could flow into the market of cryptography”, Acheson. said.
This means that around $20 trillion could be invested in crypto over the next 10 years.
The market value of the entire sector is $2.3 trillion now, according to CoinGecko – meaning the sector could increase in size tenfold.
Of these flows, Acheson estimated that Bitcoin and Ethereum could receive around $10 trillion, with the rest going to DeFi, memecoins and other projects.
The market value of Bitcoin stands at nearly $1.2 trillion, and that of Ethereum stands at $402 billion.
Assuming Ethereum’s market value is still 33% of Bitcoin’s after the wealth transfer, this offering would push Bitcoin to around $600,000 and Ethereum to $32,000.
“There are, of course, many things that could cause this situation to evolve negatively in 10 years,” Acheson said. “The outlook for crypto could weaken, new groups of alternative assets could gain popularity, and so on.
“But despite this, we largely neglect the impact of wealth transfer. »
Crypto market players
- Bitcoin is down 2% over the past 24 hours to trade at $60,956.
- Ethereum is down 0.1% at $3,363.
What we read
Tom Carreras is a markets correspondent for DL News. Do you have a tip on trading Bitcoin? Contact us at tcarreras@dlnews.com.