J.P. Morgan Asset Management projects $BTC to deliver an annualized compound return of 10% over the next decade, beating its forecasts for US large-cap stocks at 7.5% and gold at 5.5%.
It's the first time Bitcoin has appeared in the firm's long-term capital market assumptions, signaling growing institutional recognition of the asset.
But there's a catch: Bitcoin's projected annualized volatility stands at 55%, compared with 18% for US large-cap stocks and 17.2% for gold. That volatility helps explain why its projected arithmetic return of 20.9% translates to just 10% compounded annually.
Interestingly, #Bitcoin appears in the return forecasts but remains excluded from the firm's sample portfolio allocations. Recognizing its potential doesn't necessarily mean recommending how much investors should own.
#BTC Price Analysis# #Macro Insights# $BTC
It's the first time Bitcoin has appeared in the firm's long-term capital market assumptions, signaling growing institutional recognition of the asset.
But there's a catch: Bitcoin's projected annualized volatility stands at 55%, compared with 18% for US large-cap stocks and 17.2% for gold. That volatility helps explain why its projected arithmetic return of 20.9% translates to just 10% compounded annually.
Interestingly, #Bitcoin appears in the return forecasts but remains excluded from the firm's sample portfolio allocations. Recognizing its potential doesn't necessarily mean recommending how much investors should own.
#BTC Price Analysis# #Macro Insights# $BTC