JPMorgan Chase revised its Federal Reserve interest rate forecast on recent jobs data, predicting no rate cuts in 2026 and a potential hike in 2027.
This adjustment impacts Bitcoin, dropping it to $90K, and signals tightening liquidity affecting broader digital assets.
JPMorgan Expects No Fed Rate Cuts Until 2027
JPMorgan Chase has adjusted its forecast regarding the U.S. Federal Reserve’s interest rates. The bank now predicts no rate cuts until 2027, amid resilient jobs data.
The recent analysis led JPMorgan to expect a potential rate hike, reflecting stringent financial conditions. Analysts cite changes in economic indicators as influencing factors.
Bitcoin Prices React to JPMorgan’s Forecast
Bitcoin prices fell to $90,000 amid revised forecasts and tighter liquidity expectations. Investors show caution, with JPMorgan’s stance contributing to market uncertainty.
Experts suggest potential financial shifts, with Bitcoin being significantly affected. Historical trends show similar market fluctuations when monetary policies tighten, influencing digital assets. 2026 Crypto Outlook: Trends and Predictions for the Industry.
Retracted Rate Predictions Stir Market Concerns
Previous forecasts predicted a 25bps rate cut in January 2026, now entirely retracted. Similar reactions were noted when other banks, like Barclays, postponed interest rate cuts.
“Following recent jobs data, JP Morgan has revised its outlook and no longer anticipates any US Federal Reserve rate cuts in 2026, compared with its earlier prediction of a 25 basis point reduction in January.” — First Squawk
Kanalcoin provides insights on potential outcomes, noting the consistent pressure on cryptocurrencies when monetary policies remain conservative. Experts indicate that market volatility may continue.
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