JPMorgan Expects Bitcoin Annualized Return of 10%, Higher Than Other Assets

JPMorgan Asset Management expects Bitcoin's compound annual return to be 10%, higher than other asset classes. The correlation of Bitcoin with large U.S. stocks is estimated at 33%. At the same time, JPMorgan anticipates an annualized volatility of 55% for Bitcoin and excludes it from major portfolio models due to its unstable correlation with other assets. Its long-term assumptions also include a 7.5% return for large U.S. stocks, 9.8% for private equity, 7% for a 60/40 stock-bond portfolio, and 5.5% for gold. JPMorgan views Bitcoin as a speculative asset, noting that its portfolio allocation role is related to monetary easing, and that adoption, regulation, and liquidity will all affect its economic characteristics.

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