JPMorgan Asset Management included Bitcoin in its 2027 long-term capital market assumptions, marking another step in its recognition as an institutional asset. The firm projects a 10% baseline compound annual return for Bitcoin over the next decade, alongside 55% annualized volatility. The expected return is higher than for every other asset class, while Bitcoin’s estimated 33% correlation with U.S. large-cap stocks is below its correlations with international equities, corporate bonds and hedge funds. That combination of high absolute returns and relatively low correlation could make Bitcoin a potentially attractive portfolio diversification tool. However, JPMorgan remains cautious about unstable correlations and has not included Bitcoin in its primary covariance matrix.