Key facts
- JPMorgan Asset Management forecasts 10% annual Bitcoin return over 10-15 years.
- Bitcoin's projected annualized volatility is 55%, compared to 17% for gold.
- The firm did not include Bitcoin in its main portfolio models due to volatility and unstable correlations.
J.P. Morgan Asset Management has included Bitcoin in its long-term capital market assumptions for the first time, projecting a 10% compound annual return over the next 10 to 15 years. This forecast surpasses its projections for U.S. large-cap stocks (7.5%) and gold (5.5%). However, the firm highlighted Bitcoin's significant annualized volatility at 55%, compared to gold's 17%. Due to this volatility and unstable correlations, JPMorgan did not incorporate Bitcoin into its main portfolio models, opting instead for a separate, smaller matrix. The firm also dismissed the currency debasement argument as a primary driver for crypto adoption. The report's release coincides with strong inflows into U.S. spot Bitcoin ETFs, which saw $526.7 million on Monday.