The U.S. Manufacturing PMI surged to 52.6 in January, marking a 40-month high and ending a 26-month contraction streak. This robust performance signals economic expansion, potentially influencing Bitcoin's market dynamics. Historically, PMI rebounds have coincided with Bitcoin bull markets, as seen in 2013, 2016, and 2020.
The PMI's rise suggests increased new orders and production, fostering a risk-on environment favorable to cryptocurrencies. Analysts note that while the correlation between PMI and Bitcoin is not causative, the current economic strength could enhance investor confidence in digital assets. This development arrives amid key advancements in the crypto sector, including ETF adoption and regulatory clarity.
US Manufacturing PMI Hits 40-Month High, Boosting Bitcoin Sentiment
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