Retail investors of different age brackets have been sticking to assets that kind of correlate with their age. While Bitcoin is mostly considered a new asset class, JPMorgan strategists have revealed that younger investors are interested in buying Bitcoin while the older investors are going for the long-standing asset, Gold.
Interest in Buying Bitcoin
While the younger investors show more interest in buying Bitcoin, JPMorgan strategists led by Nikolaos Panigirtzoglou also mentioned that the millennials are keen on acquiring stocks from tech companies. However, older investors prefer to sell off their shares to purchase bonds.
“The older cohorts continued to deploy their excess liquidity into bond funds, the buying of which remained strong during both June and July,” the strategists wrote in a note on August 4, which analyzed investment flows.
The strategists added that over the past five months, the interest in buying Bitcoin and Gold exchange-traded funds (ETFs), among the younger and older investors had risen significantly as they see the need for an “alternative” currency.
Retail Investors Are More Active in 2020
The note from JPMorgan’s strategists went on to explain that the retail investors are showing high demand this year. This is evident following the 46 percent spike in global stocks after the low record in March.
The note also claimed that the activeness of the retail investor somewhat explains the recent surge in cryptocurrencies and holdings of exchange-traded funds (ETFs) backed on Gold. Market reports have also shown that the price of Bitcoin and Gold has surged in the past weeks.
At the time of writing, the price of Gold per ounce is $2,031. On Coinmarketcap, Bitcoin is currently trading at $11,668, with a total market capitalization of $215,314,440,175. Again, public speculations held that the rise in the value of both assets is fueled by the downsizing global economy, including the diminishing value of the US dollar.