Bitcoin ‘reflation’ bets diverge after US PMI breaks three-year resistance

💡 DMK Insight

Bitcoin’s price action is getting tangled up with PMI data, and here’s why that matters: The recent spike in the Purchasing Managers’ Index (PMI) above 50 is significant as it indicates expansion in the manufacturing sector, which could signal a stronger economy. For traders, this correlation with Bitcoin might suggest that as economic indicators improve, risk appetite could shift, impacting crypto investments. If Bitcoin continues to react to traditional economic data, it could lead to increased volatility, especially if traders start to reposition based on macroeconomic trends. Watch for Bitcoin’s response around key support and resistance levels, as a break below recent lows could trigger further selling pressure. On the flip side, not all analysts agree on this correlation. Some argue that Bitcoin’s fundamentals, like adoption rates and regulatory developments, are far more influential than PMI figures. This divergence in opinion could create trading opportunities for those willing to bet against the prevailing sentiment. Keep an eye on how Bitcoin behaves in relation to PMI releases in the coming weeks, as this could shape trading strategies moving forward.