Bitcoin saw a significant drop below $75,000 following the opening of the U.S. market, and the downward trend seems persistent. Later in the day, if Alphabet’s earnings report turns out as complex as Microsoft’s, we could witness new lows in the Asian market opening. The U.S. PMI data was released recently. So, what do these figures indicate?
Understanding the U.S. PMI Data
The Purchasing Managers’ Index (PMI) reflects the current state of the economy. A figure above 50 indicates continued growth in the respective area, while a figure below 50 suggests weakness. Here are the latest figures:
- U.S. S&P Services PMI Released: 52.7 (Expectation and Previous: 52.5)
- U.S. S&P Composite PMI Released: 53 (Expectation: 52.9 Previous: 52.8)
- ISM Services PMI Released: 53.8 (Expectation: 53.5 Previous: 54.4)
The S&P PMI figures came in above expectations, and when combined with other economic growth data, they invalidate alarms about employment weakening. As the Federal Reserve can focus on combating inflation without worrying about employment, interest rate cuts might be delayed further. Additionally, the likelihood of a recession is decreasing. In summary, the PMI data came out poorly, contributing to Bitcoin’s fall below $75,000 and even losing the $74,000 level at the time of writing.
