The latest report on the US industrial sector shows a positive trend that has pleasantly surprised the markets. In January, the Institute for Supply Management (ISM) Manufacturing Purchasing Managers Index (PMI) reached 52.6, nearly four points above expectations, marking a return to expansion after more than a year. A PMI above 50 indicates growing industrial activity and increased business confidence. The report highlights significant increases in new orders, production, and backlogged orders, signaling robust business activity. Although employment has not fully recovered, the overall message points to a shift from economic contraction to expansion.
This industrial data is important for Bitcoin and other risk assets, as macroeconomic analysts view it as a leading indicator of economic momentum and investment sentiment. Rising industrial activity suggests improved corporate earnings, higher demand, and greater investor confidence, which generally benefits cryptocurrencies. Amid this development, Bitcoin has attempted to stabilize following a sharp weekly decline that saw its price fall below $80,000 for the first time in a while. The weekly drop reduced Bitcoin’s market capitalization by billions of dollars, reflecting a broader trend of risk aversion in global financial markets. During this period, US stocks, European and Asian markets were also affected, and traditional safe-haven assets like gold and silver declined in price.
Analysts suggest that Bitcoin may dip temporarily below this level but expect a modest price recovery soon, with resistance likely between $79,000 and $81,000. These positive industrial figures could be an encouraging sign for Bitcoin, indicating potential stability in the crypto market alongside economic improvement.
Source: bitcoinmagazine
