How Crypto Became the ‘It’ Asset for Tech‑Wary Young Investors

Key Insights:

• As per latest crypto news, Gen Z grapples with AI‑driven job displacement and rising living costs.
• Eroding faith in Fed independence and the dollar boosts crypto appeal.
• Bitcoin offers a portable, bank‑free asset aligned with young investors’ goals.
• Experts predict Bitcoin could eclipse homeownership as the new status symbol.

Crypto‑asset adoption among Generation Z has surged this year, with 51% of US respondents reporting current or past cryptocurrency ownership, compared with just 29% of Gen X, according to a survey by Gemini.

Simultaneously, 34% of Gen Z say they’d prefer using crypto over cash, the highest rate among all age groups. These figures underpin a broader shift: young investors are embracing digital assets as a hedge against job displacement, dollar uncertainty and eroding faith in traditional finance.

Crypto News Trends Show Sky‑High Asset Prices and Growing Frustrations

Bitcoin reached a record high, while the S&P 500 and gold hit all‑time highs in mid‑2025, driven largely by artificial‑intelligence–related gains in tech and energy sectors.

Yet these gains haven’t translated to smooth career paths for young workers. In an interview with Anthony Pompliano on June 22, Wall Street veteran Jordy Visser warned that “digital employees”—AI bots and humanoid robots—could replace large swaths of the workforce, leaving Gen Z to navigate a restructured job market.

“They’re not going to hire as much,” Visser said. “The people who are hired will be digital employees,” he stated.

Political pressure on the Federal Reserve to cut rates has also raised doubts about the dollar’s independence and stability.

Visser noted that long‑term faith in the US currency may erode if the Fed bows to fiscal influences: “The government saying we don’t believe in Fed independence … undermines trust.”

As a result, young investors see Bitcoin—capped at 21 million coins and unlinked to any central bank—as a reliable alternative.

Portability, Autonomy and “New American Dream”

Cryptocurrencies offer features tailored to mobile‑first generations: easy self‑custody, borderless transfers and control without banks.

Michael Saylor, executive chairman of MicroStrategy, argues that Bitcoin is now part of a “new American Dream,” one that substitutes homeownership for digital‑asset ownership.

CZ, co‑founder of Binance, went further, suggesting that 0.1 BTC—about $10,800 at current prices—could soon outpace the value of a US starter home.

This trend gained fresh momentum on June 25, when FHFA Director William Pulte ordered Fannie Mae and Freddie Mac to develop proposals for including cryptocurrency holdings in mortgage‑reserve assessments, without requiring conversion to dollars.

The directive mandates that only crypto stored on US‑regulated exchanges be considered, and instructs lenders to factor in volatility when evaluating risk.

Industry experts say the move could help younger homebuyers avoid liquidating assets at a tax penalty, further integrating crypto into traditional financial frameworks.

Beyond ownership rates, 33% of Gen Z respondents said they’re comfortable allocating at least 5% of their portfolio to crypto, versus 21% of the general US population, per the Gemini survey.

Another report indicates that 42.3% of US Gen Z hold cryptocurrency in 2025—higher than any other age cohort. As regulatory clarity improves, Ulterior portfolio allocations appear set to climb.

From Early Adoption to Mainstream Strategy

What began as speculative trading has matured into strategic allocation. Young investors now treat Bitcoin and Ethereum as portfolio hedges against inflation, AI‑driven job risk and Federal Reserve uncertainty.

“Crypto is becoming an institutional tool,” said one asset‑management executive in a recent briefing. As Fannie and Freddie draft their crypto‑mortgage proposals and AI continues to reshape labor markets, Generation Z’s embrace of digital assets looks less like a fad and more like a foundational shift in wealth building—one that may redefine the American Dream for decades to come.