Analyst: ISM Manufacturing PMI Hits 40-Month High, Bitcoin May Benefit
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Jinse Finance reported that an important indicator measuring the health of the U.S. economy has just recorded its highest monthly reading since August 2022, and crypto analysts say this could signal a turning point for bitcoin. Currently, the price of bitcoin is around $78,000. The Manufacturing Purchasing Managers' Index (PMI) released by the Institute for Supply Management (ISM) showed a January reading of 52.6, not only higher than the market consensus expectation of about 48.5, but also ending 26 consecutive months of economic contraction, according to the ISM report released on Monday. This index is a key indicator closely watched by investors and the Federal Reserve to assess economic strength, inflation risks, and whether to tighten or loosen monetary policy. A PMI above 50 indicates economic expansion, while below 50 indicates contraction. The last time the ISM reading was above 52.6 was in August 2022.
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