JPMorgan Asset Management has included bitcoin in its long-term capital-market assumptions for the first time, predicting a 10% annual compounded return over the next 10 to 15 years.<\/p>\n
Interestingly, this assessment would put BTC ahead of US large-cap stocks, real estate investment trusts, gold, and bonds. Nevertheless, the bank\u2019s analysts still warned about the cryptocurrency\u2019s extreme volatility and unstable correlations.<\/p>\n
It\u2019s obvious that we are far from the days when JPMorgan\u2019s CEO, Jamie Dimon, used to bash<\/a> the leading cryptocurrency at every opportunity he had. Now, the bank\u2019s assumption puts<\/a> bitcoin\u2019s expected annualized returns for the next 10-15 years at 10% in its base case. In contrast, US large-cap equities received a more modest 7.5% annually, US REITs 8.2%, and gold 5.5%.<\/p>\n In other words, BTC carries the highest modeled return among those headline assets in the banking giant\u2019s long-term framework. The report is designed for strategic portfolio planning rather than short-term trading. JPM said its assumptions cover more than 200 asset classes and are intended to help investors evaluate 10- to 15-year allocations rather than predict near-term price moves.<\/p>\n In its 2027 Long-Term Capital Market Assumptions, JPM included a formal return forecast for bitcoin for the first time in the report\u2019s over 30-year history. The range outlined in the analysis is also quite wide, as the bearish scenario envisions a 9.7% annual return, while the bullish case reaches up to 17% per year.<\/p>\n Despite the bullish prediction above, the bank, which spent a long time bashing the largest cryptocurrency, is not suddenly treating it as a conventional portfolio asset. The report estimated BTC\u2019s volatility at around 55%, far above equities, bonds, and gold. It also stressed that bitcoin\u2019s unstable correlation with other assets remains a major obstacle to strategic portfolio inclusion.<\/p>\n Consequently, the cryptocurrency has not yet been added to JPM\u2019s main covariance matrices, although the bank now provides a separate, smaller matrix for bitcoin against selected public-market assets.<\/p>\n This matters because the 10% estimate is not a price target, not an allocation recommendation, and not a guarantee that BTC will indeed outperform stocks. It is a long-term expected-return assumption used in portfolio modeling.<\/p>\n The post JPMorgan Expects Bitcoin to Beat Stocks and Gold: But There\u2019s a Catch<\/a> appeared first on CryptoPotato<\/a>.<\/p>","protected":false},"excerpt":{"rendered":" JPMorgan Asset Management has included bitcoin in its long-term capital-market assumptions for the first time, predicting a 10% annual compounded return over the next 10 to 15 years. Interestingly, this assessment would put BTC ahead of US large-cap stocks, real estate investment trusts, gold, and bonds. Nevertheless, the bank\u2019s analysts still warned about the cryptocurrency\u2019s […]<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-241661","post","type-post","status-publish","format-standard","hentry","category-discovery"],"_links":{"self":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/241661"}],"collection":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=241661"}],"version-history":[{"count":0,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/241661\/revisions"}],"wp:attachment":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=241661"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=241661"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=241661"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}But There\u2019s a Catch<\/h2>\n