JPMorgan's Revised Forecast Sends Ripples Through Global Markets

JPMorgan's recent revision of its non-oil growth forecast for Gulf economies is a significant development, particularly given the ongoing Middle East conflicts. These conflicts are having far-reaching effects on global markets, including cryptocurrencies.

The bank has trimmed its average growth forecast by 0.3 percentage points, with Bahrain and the UAE seeing the largest reductions of 0.5 and 0.4 percentage points respectively. The analyst notes that the ongoing conflict is elevated and prevalent across multiple fronts, making it difficult to predict a final outcome.

The impact on cryptocurrencies could be substantial, particularly if prices continue to decline as predicted. Bitcoin, for example, may drop as low as $60,000 in 2026, down from its current price of over $66,300. Other cryptocurrencies are also likely to feel the effects of this revised forecast.