JPMorganChase's asset management division has said that while bitcoin remains too volatile to recommend for strategic investors' portfolios, the cryptocurrency could outperform most asset classes over the next 10 years, according to its 2027 "Long-Term Capital Market Assumptions" report.
The bank said that although volatility in bitcoin's price has dampened, it is "premature to consider BTC as a diversifier in a balanced portfolio."
"BTC currently lacks a clear role as a diversifier in balanced portfolios due to unstable correlations to other asset classes," the report read. It added: "We see bitcoin as a speculative asset and a hedge against monetary easing."
The report included a graph showing a base case for bitcoin returns beating stocks, bonds and gold, but noted that the coin's volatility could harm its role in portfolios.
"But should volatility continue to decline and correlations to other asset stabilize, this may evolve in the future, particularly as regulation becomes clearer and liquidity and price discovery continue to improve," it noted.
For now, the report added, bitcoin "mostly trades like a high beta risk asset that tracks global money supply growth."
JPMorgan, one of the world's biggest banks, has utilized bitcoin's underlying blockchain technology to debut its own products. However, CEO Jamie Dimon has long been a bitcoin skeptic, having called it a "hyper up fraud" and "pet rock," and said its only value is to criminals. Still, he has praised the coin's underlying technology and lauded crypto products like stablecoins.
Bitcoin has become more popular on Wall Street, especially since the Securities and Exchange Commission green lighted exchange-traded funds to trade in 2024. President Donald Trump's pro-crypto stance has also helped: regulators under the U.S. leader have taken a far more open approach to watchdogging the space since 2025.
