JPMorgan Chase's asset management division says bitcoin could outperform most asset classes over the next 10 years. The bank still does not recommend it for strategic investors' portfolios because of its volatility.
JPMorgan Chase's asset management division said bitcoin could outperform most asset classes over the next 10 years, but it is still too volatile to recommend for strategic investors' portfolios. The bank laid out the view in its 2027 "Long-Term Capital Market Assumptions" report.
Bank sees a speculative asset
The report says volatility in bitcoin's price has dampened, yet the bank still does not treat the coin as a portfolio building block. According to the report, it is "premature to consider BTC as a diversifier in a balanced portfolio."
The reason, the report says, is that bitcoin lacks a clear role as a diversifier because of unstable correlations to other asset classes. It calls bitcoin a speculative asset and a hedge against monetary easing, and says the coin mostly trades like a high beta risk asset that tracks global money supply growth.
Base case beats stocks, bonds and gold
However, the report includes a graph with a base case in which bitcoin returns beat stocks, bonds and gold. It adds that the role could change if volatility keeps declining and correlations to other assets stabilize, particularly as regulation becomes clearer and liquidity and price discovery keep improving.
Wall Street interest has grown, especially since the Securities and Exchange Commission approved exchange-traded funds to trade in 2024. Bitcoin Magazine also notes that regulators under President Donald Trump have taken a more open approach to the space since 2025.
JPMorgan itself has used the blockchain to debut its own products. Yet CEO Jamie Dimon has long been a bitcoin skeptic: he has criticized the coin and said its only value is to criminals, while praising its underlying technology and crypto products like stablecoins.
Source: Bitcoin Magazine
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