Bitcoin Nears $70,000 on PMI Boost, Diverging From U.S. Stocks
Bitcoin has often moved in tandem with risk assets such as the Nasdaq. Investors also use the S&P Global U.S. Manufacturing Purchasing Managers’ Index (PMI) to assess economic conditions and the likely direction of Federal Reserve policy. This time, however, BTC rallied even as Middle East tensions weighed on U.S. stocks, prompting markets to watch for signs of an independent flow of capital into crypto assets.
After markets opened on Monday, July 20, the latest U.S. manufacturing PMI data improved risk appetite, sending Bitcoin sharply higher and close to $70,000. The cryptocurrency remained strong even as concerns involving Iran persisted and U.S. stocks weakened over the same period. The $70,000 threshold is now the key battleground for bulls and bears this week.
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The history behind this eventBitcoin May End May Down 3% as Markets Eye U.S. PMI, Labor Data
Bitcoin is highly sensitive to U.S. dollar liquidity and interest-rate expectations. The Institute for Supply Management’s purchasing managers’ index and U.S. Labor Department employment data often reshape views on the economy and monetary policy, making them major sources of volatility for risk assets such as cryptocurrencies.
As of the end of May, Bitcoin was hovering near $73,500 and could close the month about 3% lower. Markets have turned their attention to U.S. PMI and labor-market data due next week. Any shift in rate-cut expectations or the dollar’s direction could become a key catalyst for BTC prices in early June.
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