This ratio is higher than that of major US stocks and gold.
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Bitcoin Outperforms Traditional Investments!
According to JPMorgan’s 2027 Long-Term Capital Markets Expectations report, Bitcoin’s annual compounded return is projected at 10%. This rate compares to 9.8% for private equity; 7.5% for large-cap US stocks; 7% for a 60/40 equity-bond portfolio; and 5.5% for smaller portfolios.
JPMorgan also added that Bitcoin’s correlation with US large-cap stocks is estimated at 33%.
Thus, Bitcoin stands out as the asset with the highest expected return among the investment instruments evaluated by the bank, highlighting $BTC’s portfolio diversification potential.
While JPMorgan’s report attracted attention in the market, Grayscale’s head of research, Zach Pandl, also reviewed it. Pandl emphasized that Bitcoin is gaining more acceptance in the institutional investment world, but this does not mean its role in portfolios is definitively established.
“…The correlation between Bitcoin and large-cap US stocks is 33 percent. This is lower than that of foreign stocks, corporate bonds, and hedge funds. Because the degree of alignment with stocks is relatively small, there is room for diversified investment.”
*This is not investment advice.