If you think crypto was a game for a teenager, think again.More people in the United States than ever before are turning to cryptocurrencies to help with their retirement savings, it seems that the recent market crash provides a strong reminder that this wild market is not for the faint of heart.
Some 27% of Americans aged 18-60 – about 50 million people – own or trade crypto in the past six months, a survey published last week on crypto exchange KuCoin found. Yet older people are more committed to the new asset class than to ordinary people, according to a study conducted at the end of March, with 28% of those 50 and older who gamble with crypto as part of their early retirement plans.
The most popular investment in crypto was that they saw it as a financial future, did not want to miss out on the hot weather, and saw it as a way to diversify their portfolios. Market turmoil in recent weeks has silenced the talk in early 2022 that bitcoin and other crypto will gain general acceptance and be included in pension schemes.
“If (investors) want crypto, it should be the smallest share of their portfolio, and they should be prepared to lose it,” said Erik Knutzen, chief investment officer in a multi-asset class strategy at Neuberger Berman.”We would not recommend it to everyone.” Indeed bitcoin trades for about $ 30,000, down 60% from $ 69,000 in November. And market downturns mean that more and more new investors’ investment is focused on red.
However, crypto investors and analysts are watching as a hawk for any indication that bitcoin may return. Nikolaos Panigir tzoglou of JP Morgan and his international strategy team said last week crypto mayhem was so depressing to investors that some metrics showed “a good place to go for long-term investors.” Bitcoin currencies, which include trading currencies (ETFs) have seen the biggest breakthrough since May 2021, said JP Morgan, adding that a representative of his Chicago Mercantile Exchange bitcoin futures position was approaching a sell-off position. Using a model based on the volatility ratio of bitcoin to gold, the team estimates the “fair value” of bitcoin to $ 38,000.
$ 100K OR MORE
The KuCoin poll comes a week after a Fed study of 11,000 adults found that 12% of Americans invested in crypto currency as an investment last year. It did not reduce participants’ age, but found about half of those who hold crypto investing with an annual income of $ 100,000 or more, while about a third have an income of less than $ 50,000.
If older investors are in the new crypto yanguard, however, has there been a rush from asset managers to meet this need?
Fidelity Investments created uproar in April when it announced that people would soon be allowed to deposit part of their retirement savings into bitcoin through their 401 (k) investment plans. “Fidelity is always working and making decisions with the highest level of integrity and unwavering commitment to our customers, including retirees,” said a Fidelity spokesman. But if the anecdotal evidence from a conference of investors and asset managers in New York last week is any guide, there may be a 401k crypto market temporarily for now.A common consensus was that crypto was changing incorrectly for retirement purposes. Unless you are a complex investor, like a hedge fund, or you are ready to swallow a big loss, then it is best to be clear.
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