Gen Z Millionaires Are Driven by FOMO in Crypto Investments

(SeaPRwire) –   For years, cryptocurrency has drawn in younger investors by promising unusually high returns that exist outside the conventional financial system. Even with widely publicized warnings about its unstable value, affluent Gen Z and millennial investors are adopting this asset category at much higher rates than their older counterparts.

Per a newly released report from the CFA Institute, 48% of well-off young investors — defined as people holding $100,000 to $999,999 in total assets — say they own cryptocurrency. That figure is almost twice the share of Gen X and baby boomer investors in the same wealth tier, as only roughly one in four of those older groups hold crypto assets.

This trend also stays consistent among higher net worth groups. Half of Gen Z and millennial millionaires own cryptocurrency, compared to only 33% of the Gen X and baby boomer millionaires from the generation above them.

So what is fueling this trend? Around 44% of Gen Z investors and 49% of millennial investors state that fear of missing out, commonly shortened to FOMO, plays a role in their choice to put money into crypto.

Huge upside, major risk: Bitcoin’s price has dropped by 50% over the past few months

Over the last few months, this investment wager has looked far less appealing than it did previously.

After reaching an all-time high of $124,000 in October, Bitcoin has fallen to roughly $66,000 — a decline of around 47% — shaking up investment portfolios and testing the commitment of even its most passionate supporters.

This shift is taking place during a critical juncture. Over the coming decades, an estimated $61 trillion in wealth is projected to be passed down from older generations, with roughly $46 trillion going to millennials and $15 trillion to Gen Z. This transfer will give younger investors an unparalleled level of financial power at a time when worries over their financial knowledge are on the rise. But experts caution that basing investment choices on what peers are doing could easily lead to major losses.

“It is worrying that younger investors are so prone to FOMO, as this can push them to make impulsive decisions driven by hype, without stopping to consider their long-term financial objectives,” Genevieve Hayman, a senior researcher at the CFA Institute, told .

Young investors are turning to social media for financial guidance — and experts say it is doing more harm than good

Social media has emerged as a double-edged sword for young people who invest.

On the positive side, it is exposing people to the workings of financial markets earlier than ever before. Per a 2024 survey from the World Economic Forum, more than half of Gen Z began learning about investing before they got their first job, compared to just 20% of baby boomers. Close to one-third of Gen Z started investing while they were in college or in the early stages of their career, a rate roughly double that of millennials when they were the same age.

But the reliability of information shared on social media varies wildly.

Because of this inconsistency, Gen Z still consistently falls behind older generations when it comes to financial literacy across all eight core personal finance categories tracked by TIAA. Many young adults struggle to answer basic questions about saving, borrowing money, and making investments.

“Having access to this kind of information can feel empowering, but it also leaves young investors open to false information and investment tips from influencers that may not come with the required disclosures,” Hayman noted.

“This exposure also makes the stress of ‘missing out’ even worse when it seems like peers are making big profits from trending stocks or viral investment fads.”

Gen Z is showing financial red flags — and leaders like Jamie Dimon and Kevin O’Leary say insufficient education is the root cause

Warning signals have already appeared that highlight the challenges young people face when managing their money. A 2025 FICO report shows that the average credit score for Gen Z dropped three points to 676, which is 39 points below the national average of 715.

According to the National Endowment for Financial Education, 30 U.S. states currently require financial education as a condition for high school graduation. But many business leaders, including JPMorgan Chase CEO Jamie Dimon, argue that these requirements are not enough.

“We should be teaching financial literacy skills, like how to save money properly,” Dimon stated during the 2024 Atlantic Festival.

Shark Tank investor Kevin O’Leary has shared the same concern, noting that a large number of young people reach adulthood without a solid grasp of basic money management.

“I’ve spent the majority of my career working in education, and the hard reality is this: We’ve gotten better at teaching math. We’ve gotten better at teaching reading. We have completely failed at teaching financial literacy,” O’Leary shared in a social media post.

His advice is straightforward, and it stands in clear contrast to the high-risk, high-reward mindset that is often associated with volatile assets such as cryptocurrency.

“Don’t spend your money. Save it. Invest it. Let it grow through compound interest. That is the benefit the market offers you,” he said, adding that putting away even a small amount of money consistently over time can grow into a portfolio worth $1 million by the time you retire.