Bitcoin is nearing $83,000, with major virtual assets like Ethereum and Ripple also experiencing gains. JP Morgan Asset Management forecasts that Bitcoin's long-term returns will surpass those of stocks and bonds, while cautioning about its high price volatility.
According to CoinMarketCap, as of 8 a.m. on October 21, Bitcoin was trading at $82,999, up 1.27% from the previous day.
Ethereum recorded a 1.97% increase, reaching $2,451. Ripple (XRP) rose 2.49% to $1.33, while Solana gained 1.58% to trade at $106.73. Binance Coin (BNB) also saw a 1.49% increase, reaching $741.86.
In its '2027 Long-Term Capital Market Outlook,' JP Morgan Asset Management projected an average annual compound return of 10% for Bitcoin over the next 10 to 15 years. This marks the first time JP Morgan has included Bitcoin in such a forecast.
Bitcoin's expected returns exceed those of major traditional assets. The report estimates a 7.5% return for U.S. large-cap stocks and 8.2% for real estate investment trusts. U.S. bonds are projected to yield about 5.6%, while gold is expected to return 5.5%. This means Bitcoin's expected return is 2.5 percentage points higher than that of U.S. large-cap stocks and 4.5 percentage points higher than gold.
However, the high expected returns come with significant risks. JP Morgan estimates Bitcoin's annual volatility at around 55%. This indicates that, due to its larger price fluctuations compared to traditional assets, investors should consider the associated risks alongside the long-term return outlook. Notably, the projected 10% average annual compound return does not imply a steady increase of 10% each year.
On this day, market sentiment remained neutral. CoinMarketCap's 'CMC Crypto Fear & Greed Index' recorded a neutral score of 51.
In the domestic market, Bitcoin experienced a decline. At the same time, Bithumb reported Bitcoin trading at 11,044,000 won, down 0.39% from the previous day. The 'Kimchi Premium,' which indicates the price difference between domestic and international markets, was recorded at 0.24%.
* This article has been translated by AI.
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