Why today's ISM report can't save Bitcoin, and why this should worry believers in the supercycle theory
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According to CoinWorld, the ISM Manufacturing Index (a survey measuring business conditions) has been misused by some traders as an indicator for bitcoin prices. Historical data shows that bitcoin's trend often moves in the opposite direction of the ISM Index; when the ISM Index rose in 2014, bitcoin prices fell sharply; when the ISM Index declined in 2015, bitcoin prices rebounded. Bitcoin's price is driven by factors such as liquidity, leverage, and positions, rather than factory output sentiment. Making high-risk bets on the bitcoin supercycle based solely on a single macro indicator like the ISM is an oversimplified and extremely risky approach.
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