JPMorgan Projects 10% Annual Bitcoin Returns Over Next Decade
What happened: JPMorgan Asset Management released its first long-term bitcoin forecast, projecting a 10% compounded annual return for BTC over the next 10 years, with an arithmetic average of 20.
What happened: JPMorgan Asset Management released its first long-term bitcoin forecast, projecting a 10% compounded annual return for BTC over the next 10 years, with an arithmetic average of 20.9%. The report estimates annualized volatility at 55%, significantly higher than gold's 17%. Despite the strong return outlook, JPMorgan excludes bitcoin from its main portfolio models due to unstable correlations with other assets.
Why it matters: This is the first time a major Wall Street institution has included bitcoin in its annual long-term capital market assumptions, signaling growing mainstream acceptance. The projected return outpaces JPMorgan's forecasts for U.S. large-cap stocks (7.5%), gold (5.5%), and traditional 60/40 portfolios (7%). However, the high volatility estimate may deter risk-averse investors, and some industry voices argue that bitcoin's volatility is on a long-term decline.
Source: The Block