JPMorgan Chase has indicated in its latest “Long-Term Capital Market Assumptions” report that bitcoin could deliver returns surpassing most major asset classes over the next decade. However, the bank warned that the cryptocurrency’s ongoing price volatility keeps it from being a standard portfolio recommendation for strategic investors at this time.
JPMorgan’s cautious outlook on bitcoin
JPMorgan, one of the world’s largest financial institutions, stated that although the price swings in bitcoin have become less extreme, it remains too early to treat BTC as a true diversifier for balanced portfolios. In the report, analysts explained that bitcoin’s current correlation with other asset classes is unstable, which undermines its effectiveness as a diversifying asset.
The report described bitcoin as “a speculative asset and a hedge against monetary easing,” rather than a strategic cornerstone of investment portfolios.
“BTC currently lacks a clear role as a diversifier in balanced portfolios due to unstable correlations to other asset classes,” the report concluded.
Despite these reservations, JPMorgan’s analysts forecast that the base case for bitcoin returns could outpace those of stocks, bonds, and gold through 2027. However, they also flagged the risk that ongoing volatility may limit its adoption among traditional portfolio managers.
The report noted, “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.”
For now, JPMorgan views bitcoin as a high beta risk asset, whose price movements tend to track global money supply trends rather than function as an independent store of value.
Wall Street’s changing approach and executive views
Interest in bitcoin among large financial players has grown, especially after the US Securities and Exchange Commission approved spot bitcoin exchange-traded funds in 2024. These funds have made it easier for institutional investors to directly access bitcoin through regulated markets.
President Donald Trump’s administration has also adopted a more favorable approach toward crypto regulation since 2025, supporting broader engagement by traditional institutions in digital assets.
JPMorgan CEO Jamie Dimon remains one of the most vocal skeptics regarding bitcoin’s long-term value, despite his company’s use of blockchain technology to develop its own products. Over the years, Dimon has repeatedly dismissed bitcoin as “a hyper up fraud” and referred to it as a “pet rock,” suggesting it holds value mainly for criminals.
Nevertheless, Dimon has acknowledged the potential of blockchain and has praised the development of crypto innovations such as stablecoins.
Mini dictionary: Stablecoins are cryptocurrencies designed to maintain a stable value by pegging their price to a reserve asset such as the US dollar or gold, providing a less volatile alternative to traditional cryptocurrencies.
JPMorgan’s analysis suggests there could be a shift in how large institutions use bitcoin if regulators provide greater clarity and the asset’s volatility continues to decrease. For now, though, the bank maintains a cautious stance, stopping short of recommending direct bitcoin exposure to most clients.
