Bitcoin Dips After US PMI Data Shows Shrinking Economy

Bitcoin price slips today, after the latest US PMI data by the S&P Global shows that the US economy contracted last month. According to the data, the US manufacturing PMI came in at around 47, slightly down from the previous month’s figure. Notably, BTC was already noting volatile trading as traders appear to be waiting on the sideline ahead of the major economic releases this week.

US PMI Shows A Contracting US Economy

The latest US Purchasing Managers’ Index (PMI) data by S&P Global, which monitors both the manufacturing and services sector, came in at 47.3 in September, down from the previous month’s figure of 47.9. Notably, a reading below 50 indicates a shrinking economy while any reading above 50 indicates a expansion in the private sector.

Notably, this marks the sharpest fall in new orders since June 2023. The data also showed that the US manufacturing segment moved deeper into the contraction area at the end of the third quarter of 2024.

Meanwhile, this contracting data also appears to have weighed on the traders’ sentiment, as evidenced by the recent decline in Bitcoin and the other top altcoins. Almost all the altcoins in the top segment, as per market cap, have noted a decline following the data.

Bitcoin And Other Altcoins Slip Following The Data

Following the release, BTC price fell below the $63,000 mark, with its trading volume soaring 16% to $33.40 billion. On the other hand, other top altcoins like ETH, SOL, BNB, and others, have also noted a sharp decline.

Meanwhile, the latest ISM manufacturing PMI data also showed that the US economy has contracted for the sixth straight month through September. According to the latest data, the Manufacturing PMI comes in at 47.2.

This set of data appears to have weighed on the investors’ sentiment, who are now seeking more clarity with the upcoming market events this week. For instance, the US nonfarm payroll and unemployment data are scheduled for later this week, which will be closely watched by investors.

In addition, these set of US employment figures are also considered by the US central bank to decide their monetary policy plans. However, recently, Fed Chair Jerome Powell hinted towards a dovish stance going ahead. Simultaneously, other Fed officials have also echoed a similar sentiment, anticipating another 50 bps rate cut at their upcoming meeting, which has sparked investors’ optimism.

Meanwhile, the latest Labor Department data showed that the US Job Openings came in at 8 million in August, up from the market expectations of 7.7 million. This contrasting data indicates a surge in demand for labor, which usually reflects a strengthening US economy.

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Rupam Roy

Rupam is a seasoned professional with three years of experience in the financial market, where he has developed a reputation as a meticulous research analyst and insightful journalist. He thrives on exploring the dynamic nuances of the financial landscape. Currently serving as a sub-editor at Coingape, Rupam’s expertise extends beyond conventional boundaries. His role involves breaking stories, analyzing AI-related developments, providing real-time updates on the crypto market, and presenting insightful economic news.
Rupam’s career is characterized by a deep passion for unraveling the complexities of finance and delivering impactful stories that resonate with a diverse audience.

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