JPMorgan Estimates 10% Annual Return for Bitcoin, but with High Volatility

The annual volatility of bitcoin (BTC) fell to 36.1% in January, down from 52.6% a year earlier. Bitcoin was less volatile than Nvidia, but more than double that of stocks and gold. JPMorgan acknowledges that BTC could offer one of the highest returns over the next decade, but its level of risk limits its inclusion in a strategic portfolio. In its long-term projections, the bank estimates a compound return of 10% per year for BTC, higher than that of large-cap U.S. stocks and gold. However, it assigns BTC an annualized volatility of 55% and warns that its relationship with other markets remains unstable for inclusion in its allocation models.

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