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Booming Wealth Transfer to Send $20 Trillion to Cryptocurrencies: This Analyst Sees Bitcoin at $600,000 – DL News
- Baby boomers will pass on $84 trillion to their heirs.
- According to market analyst Noelle Acheson, a quarter of that wealth could end up in cryptocurrencies.
- This would push 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 that young people will buy cryptocurrencies.
That’s according to Noelle Acheson, former head of market insights for Genesis Global Trading.
Wealth transfer could lead to $20 trillion ending up in cryptocurrencies, Acheson he wrote in his newsletter, “Crypto is Macro Now.”
10 trillion dollars for Bitcoin and Ethereum
Bank of America found According to a survey last week, approximately $84 trillion will change hands from baby boomers to Generation X and millennials within the next 10 years.
And these younger generations have very different investment profiles, the report says.
Only 4% of wealthy Americans – defined as having more than $3 million in assets – over the age of 44 perceive cryptocurrencies to have greater growth potential than stocks and bonds.
But 28% of their younger peers said cryptocurrencies will outperform traditional investments.
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“If the hereditary class followed the model suggested by the survey, 24% of the wealth transfer (28% of the younger group prefers cryptocurrencies over stocks and bonds, minus 4% of the older group) could flow into the securities market cryptocurrencies,” Acheson said.
This means that around $20 trillion could flow into cryptocurrencies within the next 10 years.
The market value of the entire sector is 2.3 trillion dollars now, according to CoinGecko, which means the sector could grow tenfold.
Of these flows, Acheson estimated that Bitcoin and Ethereum could receive around $10 trillion, with the rest flowing into DeFi, memecoins and other projects.
Bitcoin’s market value is nearly $1.2 trillion and Ethereum’s is $402 billion.
Assuming that Ethereum’s market value will still be 33% of Bitcoin’s after the wealth transfer, that offering would push Bitcoin to around $600,000 and Ethereum to $32,000.
“There is, obviously, a lot that could move this needle negatively in 10 years,” Acheson said. “The outlook for cryptocurrencies may weaken, new groups of alternative assets may gain traction, and so on.
“But despite it all, we are largely overlooking the impact of wealth transfer.”
Drivers of the cryptocurrency market
- Bitcoin fell 2% in the last 24 hours, settling at $60,956.
- Ethereum fell 0.1% to $3,363.
What we are reading
Tom Carreras is a markets correspondent at DL News. Do you have a tip on Bitcoin trading? Please contact tcarreras@dlnews.com.