When people say, ‘it’s the economy, stupid’, an increasingly appropriate response would be: ‘actually, it’s the demographics, stupid.’ Demographics explain a lot about the economy and investing; and no more so is this the case than in the opaque world of cryptocurrency markets, as younger cohorts of investors are accepting of a technology that leaves older, richer, groups confused.
The price of Bitcoin has risen to its highest level in almost three years, surpassing $15,000 for the first time since the 2017 boom-and-bust, which in the process is fuelling fresh debate about whether cryptocurrencies are about to enjoy another melt up. A purely speculative bubble may be far from what the next phase in the crypto market is all about, however, as Bitcoin (and some peers) seem to be beginning to mature as legitimate financial instruments.
Since sinking below $4,000 briefly during the peak of the global market sell-off in March, prices have risen steadily and come close to $16,000 – levels not seen since the bubble popped at the end of 2017/early 2018. While it is easy to accuse them of talking their books, many investors are now confidently talking about Bitcoin making fresh all-time highs above $20,000.