J.P. Morgan Predicts Bitcoin Will Outperform U.S. Stocks and Gold Over Next Decade

J.P. Morgan Asset Management has included Bitcoin in its long-term return forecasts for the first time, projecting it will outperform U.S. stocks and gold over the next decade. In its recently released report, 'Long-Term Capital Market Assumptions 2027', the bank estimates Bitcoin's expected compound annual return at 10%, surpassing U.S. large-cap equities at 7.5% and gold at 5.5%.

The report, unveiled on October 19, 2026, highlights Bitcoin as the highest-returning asset class in the history of the bank's long-term projections. While Bitcoin's annualized volatility is pegged at 55%, significantly higher than the 18% for large-cap stocks and 17.2% for gold, J.P. Morgan also estimates its annualized arithmetic return at 20.9%. This figure reflects the simple average of annual gains or losses, indicating a substantial potential upside despite the asset's volatility.

Despite the optimistic forecast, Bitcoin is not included in the report's sample portfolio allocations, suggesting that while J.P. Morgan acknowledges Bitcoin's potential, it is not yet ready to recommend specific ownership levels to clients. This distinction highlights the ongoing evolution in institutional attitudes toward Bitcoin, as noted by Bitwise CIO Matt Hougan, who remarked on the shift from skepticism to formal inclusion in financial forecasts.

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Source: KLEA News