US manufacturing PMI hits 40-month high in bullish signal for BTC

The U.S. ISM Manufacturing Purchasing Managers' Index (PMI) has reached a 40-month high, a development that could be a positive signal for Bitcoin (BTC), Cointelegraph reported. The index registered 52.6 in January, surpassing market expectations of around 48.5 and breaking a 26-month streak of contraction. The ISM PMI is a key indicator of U.S. manufacturing activity, with a reading above 50 signaling expansion. The latest figure is the highest since August 2022. Cointelegraph noted that from mid-2020 to 2023, the PMI's movements have shown a correlation with the price trends of Bitcoin and the broader crypto market. Joe Burnett, Vice President of Bitcoin Strategy at Strive, analyzed that whenever the manufacturing PMI has rebounded in the past, the market has shifted to a risk-on phase. He added that Bitcoin saw strong upward trends following such rebounds in 2013, 2016, and 2020.