AI Is Becoming a Go-To Tool for Gen Z Crypto Traders

Plus, the latest in market news.

Happy Sunday, and welcome to Benzinga’s financial advisor newsletter.

Today we're discussing crypto trading. Most Gen Z crypto traders relied on AI bots during Q2 2025, using them more than any other age group. Gen Z traders favored AI-generated signals over traditional technical indicators by more than double.

Plus, a look back at the last week of market activity.

INDUSTRY CHATTER

Crypto trading moves fast. Prices jump around, news hits constantly, and emotions can take over in seconds. For younger traders just trying to stay on top of it all, it can feel overwhelming. That’s where AI is starting to play a bigger role, helping Gen Z stay focused when the market gets messy.

A new report from MEXC, a crypto exchange, found that most Gen Z traders are now using AI bots to help them make trading decisions. These bots aren’t doing all the work, but they’re helping out during the stressful parts, especially when prices swing suddenly or things feel uncertain. Instead of trying to figure everything out on the fly, traders can set up bots with guardrails like stop-losses or profit targets, then let them run while they watch from the sidelines.

Gen Z isn’t using these tools non-stop. They’re turning them on when things get chaotic, then switching them off when things calm down. That’s a big part of the appeal. AI helps take some of the emotion out of trading. People panic less, make fewer rash choices, and stick more closely to a plan.

There’s also a generational shift happening. Millennials tend to rely on more traditional methods like chart patterns and technical indicators. Gen Z prefers tools that are more interactive and flexible. They’re used to tech doing a lot of the heavy lifting, and AI fits right into that mindset.

Looking ahead, MEXC expects AI tools to take on even more. Things like balancing portfolios, tracking taxes, and managing risk could all get automated in the next few years. But there are still some concerns. AI isn’t perfect. Bad data or unclear decision-making can still trip people up. Even so, for a lot of Gen Z traders, AI is quickly becoming part of the routine.

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WEEKLY MARKET RECAP

The Federal Reserve didn't cave to pressure from President Donald Trump and held interest rates steady in its July meeting — one that, for the first time in over 30 years, saw two dissenting votes from board members pushing for an immediate cut.

But that decision may now backfire, as Friday's labor market data showed early signs of weakness.

July’s payroll growth was deeply disappointing, with just 73,000 jobs added — far short of the expected 110,000. Even more troubling were the massive downward revisions to May and June figures, slashing previously reported job gains by a combined 258,000.

On the inflation front, things aren't going the Fed's way either. The Personal Consumption Expenditures (PCE) price index jumped to 2.6% year-over-year in June from 2.3% in May, beating the 2.5% forecast. Excluding food and energy, the Fed's preferred inflation gauge held steady at 2.8%, above both expectations of 2.7% and the Fed's 2% target.

Despite a solid 3% second-quarter economic expansion — boosted by a collapse in imports — the spotlight is shifting back to the growing negative risks from tariffs.

After nearly four months of relentless gains, Wall Street took a step back, with major indexes finishing the week lower despite solid quarterly results from tech heavyweights Meta Platforms Inc., Apple Inc. and Microsoft Corp. — signaling that macroeconomic worries have reclaimed the driver's seat.

On the trade front, in addition to deals inked with the U.K., Japan and South Korea, Trump signed a sweeping new pact with the European Union. The deal introduces 15% tariffs while securing hundreds of billions in energy and defense investments and purchases from Brussels.

But most other trade actions reveal a harsher stance than anticipated, with 25% tariffs imposed on India, 39% on Switzerland, 20% on Taiwan, 30% on South Africa, 35% on Canadian goods and a steep 50% on imports from Brazil.

Trump also issued a new 10-day ultimatum to Russia: agree to a ceasefire with Ukraine or face new sanctions.

Meanwhile, oil prices ended the week in the green, with crude closing above $66 per barrel as traders await the next decision from OPEC+.

THE WEEK AHEAD

Economic Data

  • Monday: US factory orders

  • Tuesday: US trade deficit and final services PMI

  • Wednesday: US crude oil inventories

  • Thursday: US initial jobless claims and consumer credit

  • Friday: CFTC Gold speculative net positions

Earnings

  • Monday: Palantir (PLTR), MercadoLibre (MELI)

  • Tuesday: Advanced Micro Devices (AMD), Caterpillar (CAT)

  • Wednesday: McDonald's (MCD), Disney (DIS)

  • Thursday: Eli Lilly (LLY), Toyota (TM)

  • Friday: Emera (EMA), Lamar Advertising (LAMR)

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