MEXC reports that 67% of Gen Z cryptocurrency traders utilize AI tools, leading to a decrease in panic selling.

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An increasing number of Gen Z cryptocurrency traders are utilizing artificial intelligence (AI) to inform their trading strategies, which is reducing their tendency to engage in panic selling.

A July 24 report from MEXC Research, which examined more than 780,000 Gen Z trading accounts in the second quarter, revealed that 67% of users aged 18 to 27 had utilized at least one AI-driven bot or strategy within the last 90 days.

Traders employing AI tools experienced 47% fewer panic-selling occurrences during times of market stress compared to those who traded manually.

A tactical ‘on–off’ relationship

Gen Z’s interaction with AI is not passive. This group averaged 11.4 days per month using AI tools, which is more than double the usage among individuals over 30. Additionally, they represented 60% of all AI bot activations on the platform.

However, they do not keep bots running continuously; 73% activated them during periods of volatility or news events and deactivated them during low-volume, sideways markets. In total, 58% of Gen Z’s AI interactions took place during times of heightened readings on MEXC’s internal volatility index.

This behavior indicates a preference for flexible control rather than complete delegation. Gen Z sets conditions and allows automation to operate when emotions are most likely to interfere. They also review AI-generated signals 2.4 times more frequently than traditional indicators, indicating they regard machine output as the primary source of decision-making in fast-moving markets.

Generational differences

MEXC’s findings suggest that AI functions as both a risk-management tool and a convenience feature. Gen Z traders utilizing bots were 1.9 times less likely to trade reactively in the first three minutes of significant events, a timeframe that MEXC identifies as susceptible to costly mistakes.

They were also 2.4 times more inclined to use structured stop-loss and take-profit strategies, emphasizing that automation is employed to uphold strict boundaries, not merely to identify entry points.

Comparisons across generations show that millennials still prefer thesis-driven, chart- and report-intensive workflows, viewing AI as an enhancement to established strategies.

Only 22% of millennials and 7% of Gen X indicated they turned to AI during high-volatility periods, compared to 73% of Gen Z.

From a psychological perspective, millennials desire a sense of ongoing manual control. In contrast, Gen Z adjusts their autonomy based on stress, noise, and attention capacity, a trend that reflects behaviors observed in gaming and social media environments.

MEXC anticipates that by 2028, over 80% of Gen Z traders will depend on AI for comprehensive portfolio management, encompassing dynamic rebalancing and tax automation.

This demand aligns with broader projections, estimating the AI trading platform market to reach nearly $70 billion by 2034, with a growth rate exceeding 20% CAGR from 2025 to 2034.

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