PMI Signal Triggers Bitcoin Bull Run Fears

The market appears to be repeating historical patterns, with a similar setup forming in the latest PMI data. The U.S. ISM Manufacturing PMI came in at 55.6, above expectations, and marks its highest level since June 2022.

This typically points to improving manufacturing activity and a healthier economic backdrop, which could influence risk assets like Bitcoin.

According to one analyst, every time the ISM PMI has sustained levels above 55, the crypto market has entered a major upside phase. This signal has resurfaced, with the total crypto market cap breaking above $500 billion and $2 trillion in previous cycles, while Bitcoin rallied 1,336% and 59%, respectively.

However, this signal alone does not guarantee that Bitcoin will repeat the same move, especially given its current bearish phase. The improving macro backdrop from the PMI report could be laying the foundation for a potential shift in market momentum.