Breaking: Bitcoin Dips After US PMI Data Shows Shrinking Economy

by

As a seasoned researcher with a decade of experience under my belt, I’ve seen my fair share of economic rollercoasters. Today’s US PMI data, showing a contracting economy, is yet another reminder that this ride never truly ends. The reading of 47.3, down from the previous month’s 47.9, suggests a shrinking private sector – a fact that’s not lost on the crypto market, as evidenced by Bitcoin and other top altcoins taking a dive.

Today, the price of Bitcoin dipped due to the recently published US PMI data by S&P Global indicating a contraction in the U.S. economy last month. The manufacturing PMI stood at approximately 47, which is slightly lower compared to the previous month’s figure. It’s worth mentioning that Bitcoin had been showing volatile trading patterns as traders seemed hesitant ahead of this week’s significant economic announcements.

US PMI Shows A Contracting US Economy

The most recent data from the Purchasing Managers’ Index (PMI) by S&P Global, which observes both manufacturing and service industries, stood at 47.3 in September, marking a slight decrease from August’s 47.9. It’s important to note that figures below 50 suggest economic contraction, while those above 50 signal growth within the private sector.

Significantly, this represents the most pronounced decrease in new orders since June 2023. Additionally, the data indicated that the U.S. manufacturing sector dived further into a contracting phase toward the close of Q3 2024.

It seems that the contracting data has influenced traders’ feelings negatively, as indicated by the recent drop in Bitcoin and most other leading altcoins. In fact, nearly all the altcoins within the top market cap segment have experienced a decrease after this data was released.

Read More

2024-10-01 17:03