U.S. Manufacturing Data Turns Positive as Bitcoin Searches for a Bottom
U.S. manufacturing unexpectedly expanded in January, boosting market sentiment while Bitcoin attempts to stabilize after a significant weekly drop.Summary
The Institute for Supply Management (ISM) Manufacturing Purchasing Managers’ Index (PMI) unexpectedly jumped to 52.6 in January, signaling a return to expansion territory for U.S. factory activity for the first time in over a year, significantly beating consensus estimates. This expansion, evidenced by surging new orders and production, is viewed by macro traders as a leading indicator of improving corporate earnings and increased risk appetite, which historically benefits assets like Bitcoin.
This positive economic data arrives as Bitcoin is attempting to find a bottom after experiencing one of its most punishing weeks, with prices falling below $80,000 and wiping out over $200 billion in market capitalization since its October peak. The broader market sell-off coincided with global risk-off sentiment, weak tech earnings, and shifts in monetary policy expectations following the nomination of Kevin Warsh as the next Federal Reserve chair.
Analysts suggest that while the daily chart shows Bitcoin's Relative Strength Index (RSI) in oversold territory, suggesting a potential modest rebound, the asset could still test support near $72,000 before finding a firm bottom, with resistance expected around $79,000 to $81,000.
(Source：Bitcoin Magazine)