Bitcoin
Boomer Wealth Transfer to Send $20 Trillion to Crypto – This Analyst Sees Bitcoin at $600,000 – DL News
- Baby boomers are expected to transfer $84 trillion to their heirs.
- A quarter of that wealth could be funneled into crypto, according to market analyst Noelle Acheson.
- This would increase the price of Bitcoin to $600,000.
Sooner or later, baby boomers will bequeath their wealth to younger generations.
And when that happens, you can bet young people will buy crypto.
That’s according to Noelle Acheson, former head of market insights at Genesis Global Trading.
Wealth Transfer Could Result in $20 Trillion Coming to Crypto, Acheson he wrote in his newsletter, “Crypto is Macro Now.”
$10 trillion for Bitcoin and Ethereum
Bank of America found in a survey last week, around 84 billion dollars will pass from the hands of baby boomers to Generation X and millennials over the next 10 years.
And these younger generations have very different investment profiles, the report states.
Only 4% of wealthy Americans – defined as having more than $3 million in assets – over the age of 44 realized that cryptocurrencies have greater growth potential than stocks and bonds.
But 28% of their younger peers said crypto will outperform these traditional investments.
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“If the heir class follows the pattern suggested by the research, 24% of the wealth transfer (28% of the younger group prefers crypto over stocks and bonds, minus 4% of the older group) could flow into the crypto market ,” Acheson said. he said.
This means that around $20 trillion could flow into crypto in the next 10 years.
The market value of the entire sector is US$2.3 trillion now, according to CoinGecko – meaning the sector could grow tenfold in size.
Of these flows, Acheson estimated that Bitcoin and Ethereum could receive around $10 trillion, with the remainder flowing to DeFi, memecoins and other projects.
Bitcoin’s market value is almost $1.2 trillion, and Ethereum’s is $402 billion.
Assuming Ethereum’s market cap will still be 33% of Bitcoin after the wealth transfer, this offering would take Bitcoin to around $600,000 and Ethereum to $32,000.
“Clearly there are a lot of things that could move this needle negatively in 10 years,” Acheson said. “The outlook for crypto could weaken, new groups of alternative assets could rise in favor, and so on.
“But even so, we largely ignore the impact of wealth transfer.”
Crypto Market Movers
- Bitcoin fell 2% in the last 24 hours, trading at $60,956.
- Ethereum fell 0.1% to $3,363.
What are we reading
Tom Carreras is markets correspondent for DL News. Have any tips on Bitcoin trading? Get in touch at tcarreras@dlnews.com.