On-chain data shows that new investors are entering the Bitcoin market more quickly, possibly putting upward pressure on prices.
According to data provided by blockchain analyst firm Chainalysis, the number of “young investment” wallets (those that are one to three months old and rarely send Bitcoin) has jumped to 2.25,467 this month, the highest level since February 2018. This doubled from the 1,162,632 six months ago.
The growth curve was much flatter in the first two months of the year, but became almost parabolic following Bitcoin’s March decline.
“Young people want to buy Bitcoin,” said Chainalysis economist Philip Gradwell.
Investors entered the market when BTC reached levels below $ 4,000, with the 40% price drop observed on March 12, and have continued to transfer money to the top cryptocurrency ever since.
“Overall, the data show that the buying pressure for Bitcoin is increasing and the supply that can be bought, new purchases is likely to lock in the long term,” Gradwell said.
Bitcoin is trading around $ 10,900 at the time of writing, representing a 52% increase from year to date, but still saw an 83% drop from its record $ 20,000.
While Bitcoin rose from $ 2,000 to $ 20,000 in 2017, the number of young wallets rose from 791,289 to 2,000,000 in the second half of 2017. Investor interest remained strong despite prices falling sharply to $ 6,000 in February 2018.
Bitcoin (BTC) adoption is increasing day by day. But this ratio is still not at the desired level. Nevertheless, in this uncertain economic environment fueled by the new type of coronavirus, Bitcoin is rapidly emerging as a store of value. Despite BTC’s general weakness in the market, the way its owners view BTC puts it in the category of gold and other safe haven assets.
Since the world markets are in a bad condition due to the Covid-19 outbreak, Bitcoin has started to be a source of interest. Despite the rise of cryptocurrencies, the main popularity is still very small compared to traditional fiat currencies. Bitcoin’s limited supply and growing acceptance among young users makes it stand out from other cryptos. It is not surprising that millennials see BTC as a safe-haven asset for long-term returns. So will the millennium generation power the next round of Bitcoin adoption? The current demographic pressure certainly seems to point in that direction.
Wealth Transfer Between Generations
The largest in the world is witnessing a sharp increase in cryptocurrency adoption rates. Statements recently made by many BTC analysts reveal the possibility of reaching $ 100,000 in the leading cryptocurrency in a few years. Many analysts from PlanB to Pete Rizzo are drawing a bright future for BTC. And the new generation is increasingly looking to be part of this Bitcoin adoption boom.
As the large transfer of wealth shakes the demographic and geographic landscape of economies, it is predicted that Bitcoin will mostly rise to extreme numbers. Generations will transfer wealth between them and $ 68 trillion will be passed on to the younger generation. If current trends are to be believed, most of these will turn into Bitcoin.