So what changed? For many, it’s the potential for outsized gains. Assets like Bitcoin have experienced significant bull runs, and investors who entered early—or timed their entry well—have seen massive returns. At the same time, the volatility has been unforgiving, and others who bought in at the wrong moment have faced steep losses, underscoring just how high the stakes can be.
But performance isn’t the only draw. Some investors like the idea of betting on the future of finance, especially because many cryptocurrencies run on decentralized blockchain technology such as Ethereum. This technology provides secure and transparent transactions without relying on a central financial institution.
And for many younger investors, the appeal is accessibility. Compared with traditional wealth-building paths that can feel far off, crypto can feel more immediate—an entry point that’s available now.
Still, caution runs deep. Half or so of both crypto investors (53%) and non-crypto investors (50%) still describe it as high risk per the Modern Wealth Survey.
That caution isn’t unfounded. Bitcoin is roughly three times as volatile as the S&P 500. Smaller cryptocurrencies are even more volatile.
“The crypto market is broadly a momentum market that trades on sentiment,” says Jim Ferraioli, director of digital currencies research and strategy at the Schwab Center for Financial Research. “Over a multi-year period, cryptocurrencies have a low correlation to stocks, but over shorter periods they can be strongly correlated.”
Another difference is how investors evaluate them. “Cryptocurrencies have their own fundamentals, which can include metrics such as adoption and ownership, usage, transaction fees, etc., but most don’t have traditional fundamentals you might see in a stock such as earnings,” he adds.
