Good day everyone,
I hope you are all having a good day, welcome to CryptoGod-1's blog on all things crypto. In this post I will be looking at the recent forecasts by JP Morgan, backing the asset to outperform gold and stocks over the coming decade.
JP Morgan Backing Bitcoin
It been a very busy 24 hours for JPM. First of all the JPMorgan Coin (JPMD) has gone live on Ethereum, the Layer 1 blockchain network. It is major news for the institution as they look to extend their use of institutional finance on the public blockchain. As the largest US bank the move to bring their almost year old token onto Ethereum is part of their ambitions to move beyond Base, the layer-2 blockchain built by Coinbase Global.
Ethereum was the choice of network due to their availability of wider liquidity than rival networks along with the fact it is also being used by institutional clients. This comes from Emma Landriault, the head of Kinexys Labs at JPMorgan’s blockchain division Kinexys. She noted:
Issuing JPM Coin first on Base and now on Ethereum is a meaningful step towards providing our institutional clients with multi-chain optionality for moving wholesale money across both the web3 and traditional finance ecosystems
Along with the major move of network, the banks asset management arm also expects Bitcoin to outperform both stocks and gold. An expected 10% annual compounded return over 10 - 15 years would put it above projections for U.S. large-cap stocks, REITs, and gold. Bitcoin is sitting nicely at the top of the list, compared with a 7.5% return for U.S. large-cap stocks, 8.2% for U.S. real estate investment trusts, and a return of 5.5% for gold.
https://am.jpmorgan.com/us/en/asset-management/adv/insights/portfolio-insights/ltcma/
Bitwise invest chief, Matt Hougan, celebrated the news but did note the cavaet that comes with the predication. JP Morgan has assigned a 55% annualised volatility risk on Bitcoin, meaning as per always it wont be plain sailing. That comes in at almost three times the risk associated with U.S. large-cap equities at 18% and an 17.2% estimate for gold. The bank emphasised that Bitcoin’s unstable correlation with other assets remains a major obstacle to strategic portfolio inclusion.
Hougan noted that the inclusion of Bitcoin represented another milestone in Bitcoin's acceptance, stating:
First they ignore you, then they laugh at you, then they fight at you, then they add you to their Long-Term Capital Markets Assumptions paper and predict you'll be the best-performing asset of the next decade.
The news is extremely interesting, especially that JP Morgan's CEO Jamie Dimon called Bitcoin a "fraud" in 2017 and threatened to fire employees trading it. In January 2025 he noted that Bitcoin was a "Ponzi scheme" but it seems the opinion on Bitcoin is shifting. By May 2025 he noted that JP Morgan would allow clients to purchase Bitcoin and stated:
I don't think you should smoke, but I defend your right to smoke.
What this means for Bitcoin remains unknown. Some will automatically note that it must mean the price of Bitcoin will skyrocket above $200,000 in the coming decade. Others will point to the volatility and potential crashes along the way as reasons to avoid crypto. Either way Bitcoin is very much on the radar of major institutions, and it is up to you whether or not that should be considered as positive or negative.
Have a great day.
Peace. CryptoGod-1.
