Bitcoin craze among older Aussie investors; what’s driving the boom?

Highlights

  • The cryptocurrency market has observed a significant change in the recent past.
  • There has been a substantial rise in the number of Australian investors over 65 years of age who are investing in crypto assets.
  • The older Aussie lot is also making the largest deposits among all investors.

The cryptocurrency market has observed a significant change in the recent past. The digital currency market which was popular among young investors is now witnessing the older lot catching up fast. According to the latest data by BTC markets, there has been a substantial rise in the number of Australian investors over 65 years of age who are using the Australian cryptocurrency exchange.

There was a 15% surge in the number of investors of over 65 years in the past financial year, according to the crypto exchange’s annual ‘Investor Report.’ The same report also points to the fact that the older Aussie lot is also making the largest deposits among all investors.

Of the platform’s estimated 325,000 customer base, 5% are Baby Boomers – people born between 1946 and 1964.

The growth figure reported that Baby Boomers was the second-highest group after the 18-24 age range. Baby Boomers have a worth of AU$3,200. The typical measurement of their cryptocurrency portfolio is AU$3,700.

The older Aussie lot is also making the largest deposits among all investors

Source: © Volodymyrshtun | Megapixl.com

What is driving Baby Boomers towards cryptocurrency?

According to Bowler, low interest rates stand as the major factor behind this lot getting interested in alternative investments such as cryptocurrency.

“These Baby Boomers are often at a stage in their lives when they have accumulated significant wealth and assets and have many years of experience investing in financial markets,” said Bowler.

In addition, the younger traders who belong to the Generation Z category (18-24) had comparatively smaller initial deposits and investment portfolios.

Meanwhile, cryptocurrency prices bounced from one-and-a-half-month lows on Tuesday as a heavy selloff overnight linked to concerns about a possible loan default by property developer China Evergrande eased slightly, but investors braced for more volatility.

Bitcoin, the biggest and the best-known cryptocurrency, hit a four-month high of US$52,000 on 6 September 2021.

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