JPMorgan Expects Bitcoin to Beat Stocks and Gold: But There’s a Catch

JPM has made one of its most notable long-term BTC calls to date. 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’s analysts still warned about the cryptocurrency’s extreme volatility and unstable correlations. Ahead of Stock and Gold? It’s obvious that we are far from the days when JPMorgan’s CEO, Jamie Dimon, used to bash the leading cryptocurrency at every opportunity he had. Now, the bank’s assumption puts bitcoin’s 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%. In other words, BTC carries the highest modeled return among those headline assets in the banking giant’s 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 evalu...