According to a recent report by Northwestern Mutual, US Gen Z and Millennials in 2026 show significantly higher interest in high-risk, speculative assets compared to other generations. Cryptocurrency, along with sports betting and prediction markets, represents their most characteristic financial behaviors. This phenomenon reflects a deep skepticism among younger demographics towards traditional financial paths.
Data shows that 32% of Gen Z express interest in cryptocurrency, compared to 35% of Millennials, 20% of Gen X, and only 8% of Baby Boomers. The overall cryptocurrency participation rate among US adults is 24%, a figure noticeably lowered by older generations. Notably, among Gen Z, the participation rate in cryptocurrency is on par with interest in sports betting and prediction markets, both at 32%. These are not choices made by two separate groups, but rather a highly overlapping group simultaneously engaging in both types of activities.
The report terms this behavioral pattern “financial nihilism”—not based on rational analysis of blockchain technology or asset allocation, but stemming from a sense of powerlessness at being systematically excluded from traditional wealth accumulation paths. Facing high housing costs, heavy student loan burdens, stagnant wage growth, and soaring asset prices, Gen Z generally believes that relying on savings, retirement plans, or stable employment is no longer sufficient to achieve financial security.
This mindset shapes a unique investor profile: they are more inclined to concentrate investments in high-volatility assets, lack patience for long-term holding, and are more easily driven by trending topics on social media, chasing narratives of “get rich quick.” This is also the underlying driver of the recent meme coin craze, AI-related token speculation, and frequent spikes in market sentiment indicators such as Santiment's FOMO Index.
Crucially, Gen Z's interest in prediction markets is on par with cryptocurrency, which is no coincidence. The current regulatory uncertainty, and the rise of some financial innovations in gray areas, make prediction markets an alternative tool for young people to bypass traditional financial barriers. Although the report does not fully elaborate on the regulatory aspects, this phenomenon clearly points to a trend: when conventional channels are closed, young people are actively building their own financial testing grounds.