Crypto collapse reverberates widely among black American investors
— Americans, Widespread losses caused, Supercharged, Playing field, Us stocks, Risk assets, Unintentional investment, Buying, Adopting crypto, Average hold less wealth — 1 min read
A quarter of black American investors owned cryptocurrencies at the start of the year, compared with only 15 per cent of white investors. Black Americans were more than twice as likely to purchase cryptocurrency as their first investment. The attraction of building wealth, amplified by marketing, drew many black investors into cryptocurrencies. The total market capitalisation of cryptocurrencies has plunged below $1tn from more than $3.2tn last year. The fall in digital assets comes alongside a bear market in US stocks. Black investors have tended to be conservative, investing more of their money into low-risk assets such as insurance and savings bonds. The author of a personal-finance curriculum geared towards young black Americans sees cryptocurrencies as a way to make up for wealth-building opportunities that were historically unavailable in housing and stock markets Source