JPMorganChase's asset management division says bitcoin could outperform most asset classes over the next decade, though the bank still considers the cryptocurrency too volatile to recommend for strategic investors' portfolios.

In its 2027 “Long-Term Capital Market Assumptions” report, JPMorgan's asset management division said that while volatility in the biggest cryptocurrency's price has dampened, it is “premature to consider BTC as a diversifier in a balanced portfolio.” The long-horizon outlook lays out the bank's return, risk and correlation assumptions across asset classes to guide strategic allocation decisions for institutional investors. In portfolio construction, a diversifier is an asset whose returns do not move in tandem with stocks and bonds, helping cushion overall performance when traditional markets swing.

“BTC currently lacks a clear role as a diversifier in balanced portfolios due to unstable correlations to other asset classes,” the report read. It added: “We see bitcoin as a speculative asset and a hedge against monetary easing.” Monetary easing refers to central banks cutting interest rates and expanding the money supply to stimulate the economy.

The report went on to show a graph with a base case — its central scenario — for bitcoin returns beating stocks, bonds and gold over the 10-year horizon. But it did add that the coin's volatility could harm its role in portfolios.

“But 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,” it noted.

For now, the report added, bitcoin “mostly trades like a high beta risk asset that tracks global money supply growth” rather than behaving like a traditional portfolio diversifier. A high beta asset tends to move more sharply than the broader market, amplifying swings in both directions.

“JUST IN: The largest bank in the U.S. JPMorgan is forecasting Bitcoin to outperform every major asset over the next decade. You are not bullish enough pic.twitter.com/m2dEiP47Vo”
— Bitcoin Magazine (@BitcoinMagazine) October 20, 2026

JPMorgan, one of the world's biggest banks, has utilized Bitcoin's underlying technology — the blockchain — to debut its own products. But the multinational's CEO, Jamie Dimon, has long been a Bitcoin skeptic. The JPMorganChase boss has famously blasted Bitcoin, calling it a “hyper up fraud” and a “pet rock” — adding that its only value is to criminals. Still, he has praised the coin's underlying technology and lauded crypto products like stablecoins.

Bitcoin has become more popular on Wall Street, especially since the Securities and Exchange Commission green lighted exchange-traded funds to trade in 2024. The approvals opened the door for mainstream investors to gain bitcoin exposure through standard brokerage accounts. President Donald Trump's pro-crypto stance has also helped: regulators under the U.S. leader have taken a far more open approach to watchdogging the space since 2025.

This article was written by Mathew Di Salvo and first appeared on Bitcoin Magazine.