Bitcoin traders are closely watching the upcoming ISM Manufacturing PMI report, set for release on January 5, as it could influence the cryptocurrency's price. The PMI is expected to rise slightly to 48.4 from 48.2, remaining below the 50 mark that indicates expansion. However, the focus will be on sub-indexes like Prices Paid, which could signal inflationary pressures if input costs rise, potentially affecting Federal Reserve policy expectations. The report's impact on Bitcoin hinges on how it influences market perceptions of growth and inflation. A higher Prices Paid index could lead to increased bond yields and a stronger dollar, pressuring Bitcoin as a risk-sensitive asset. Conversely, if the PMI shows stable growth without inflationary signals, Bitcoin might benefit from a broader risk-on sentiment. Traders will be watching Treasury yields closely for cues on Bitcoin's potential price movement.