U.S. Manufacturing Activity Grows, Boosting Bitcoin Price
- The ISM Manufacturing PMI rose to 52.6% in January, surpassing expectations of 48.5%.
- New Orders Index jumped to 57.1%, the highest since February last year.
- The Production Index reached 55.9%, marking three consecutive months of growth.
- Bitcoin (BTC) price increased by 2.76% following the PMI release, despite a weekly decline of nearly 9%.
- The Prices Index peaked at 59.0%, indicating high input costs for manufacturers.
The positive manufacturing data suggests a recovery in demand conditions, with all five subindexes showing improvement, which often correlates with increased liquidity and risk appetite in markets like cryptocurrency.
As manufacturing activity returns to expansion territory, Bitcoin’s price reaction reinforces the historical trend that strong ISM readings can positively impact risk assets like BTC.(Source)
