Investment bank JPMorgan predicts a decline in the US dollar (USD) by 2026, attributing this to anticipated Federal Reserve interest rate cuts. The DXY index is projected to fall to 91.00 by mid-2026, according to their analysis. This shift could positively impact cryptocurrency markets like Bitcoin and Ethereum, as investors seek out riskier assets with potential for increased returns amidst reduced real yields from the USD. JPMorgan’s prediction aligns with other industry analysts who anticipate a weakening US dollar in 2026. This potential devaluation of the dollar is expected to drive interest towards cryptocurrencies, particularly Bitcoin and Ethereum, as investors shift their portfolios away from traditional safe-haven assets like the USD. The bank anticipates increased market volatility as this decline occurs. Experts are closely watching for further guidance from the Federal Reserve on its future monetary policy. Analysts believe a weaker dollar could benefit cryptocurrency markets by attracting more capital flows into riskier assets. JPMorgan’s predictions have been validated by historical data where a decline in the USD during previous Fed rate cuts led to increased adoption of Bitcoin and Ethereum as investors sought alternative, higher-risk investments. J.P. Morgan’s insight underscores the influence of macroeconomic shifts on cryptocurrency markets. The company’s analysts are closely monitoring factors such as US economic convergence with other global markets, diminished demand for safe-haven assets like the USD, and anticipated rate cuts by the Federal Reserve. JPMorgan’s predictions have drawn attention from financial experts and market observers who are anticipating changes in the global financial landscape.