JPMorgan’s bitcoin returns forecast sees 10% annual gains despite 55% volatility

JPMorgan’s bitcoin returns forecast puts the cryptocurrency ahead of US stocks, bonds and gold over the next decade, with a 10% annualized base-case return . But the bank’s first research range for bitcoin does not translate into support for it as a portfolio diversifier: JPMorgan still sees volatility and shifting asset correlations as barriers to wider inclusion. Key takeaways JPMorgan’s bitcoin scenarios span -9.7% to 17%. The bank models bitcoin’s annualized volatility at 55%. Bitcoin remains outside JPMorgan’s main portfolio allocation models.

Source: The Cryptonomist