The price of Bitcoin (BTC) is seeing shocking volatility at the moment characterizing sharp selloffs and growth. At the time of writing, the coin’s price comes in at $62,743.35, up by 2.04% in 24 hours. Prior to this resurgence, Bitcoin traded as low as 3%, however, this bearish set-up was not sustained.
The Bitcoin and ISM Manufacturing PMI Impact
One crucial update that appears to upset Bitcoin investors comes from the released ISM Manufacturing PMI in the United States. Per the data published, the ISM Mfg comes in at 48.5 as against the expected reading of 49.1. The record as of May comes in at 48.7.
ISM Mfg 48.5. Exp. 49.1, Last 48.7
ISM New Orders 49.3, Exp. 49.0ISM Prices 52.1, Exp. 55.8ISM Employment 49.3, Exp. 50.0
— zerohedge (@zerohedge) July 1, 2024
This data is crucial in measuring the direction of inflation in the country. The ISM Manufacturing PMI (Purchasing Managers Index) is an economic indicator that measures the performance of the manufacturing sector. The data basically measures the level of demand for products by looking at the ordering activity.
A PMI data above 50 denotes an expanding economy while the opposite holds true when the price is lower. The 48.5 points recorded is evident of hanging strain that might translate into inflationary boost for the economy. The outcome of these economic indices plays a crucial role on how the Federal Reserve will adjust its interest rates.
For now, the Feds have chosen to keep the interest rate intact. However, signs points to no more than one cut before the end of this year. With the released data, Bitcoin investors showcased a knee-jerk reaction to the data, triggering the flash crash.
With the market now stabilizing, the question remains, how will BTC capitalize on this newly found catalyst?
BTC Steady Reboot
Bitcoin is currently at a vantage point when it comes to its recovery push. After the intense selloff recorded in June, the coin’s natural growth path is upward in the coming weeks.
The biggest driver of Bitcoin’s growth this year remains the spot ETF product. Despite the dwindling metrics, the product still has the backing of some of Wall Streets’ biggest firms. This means the demand might not fade out anytime soon, a major win for the coin.
BTC is also benefitting from the impact of the halving that has generally reduced its supply. Should the macro-economic trends continue to favor Bitcoin, a price rebound is imminent moving forward.
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Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture. Follow him on Twitter, Linkedin
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
