JPMorgan Asset Management sees Bitcoin beating stocks, but with a big catch
But there’s a catch: Bitcoin’s extreme volatility threatens to undermine its appeal on a risk-adjusted basis.
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JPMorgan’s base case projects annualised returns of 10% over the next decade, but also assumes annual volatility of 55%, more than three times that of US large-cap stocks. The firm stops short of incorporating Bitcoin into its main portfolio models, it said in a report this week, citing its unstable correlations with other assets.
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Such volatility can eat into compounded returns as steep losses require even larger gains to recover. That’s a risk familiar to Bitcoin ETF investors who bought near the cryptocurrency‘s peak of just over $126,000 in 2025, only to see their holdings lose as much as 50% as prices retreated. Since the pandemic, various Wall Street firms have been making more earnest inroads into the world of cryptocurrencies.
