ISM Manufacturing PMI suggests Bitcoin cycle may extend beyond historical norm

The Institute for Supply Management’s (ISM) Manufacturing Purchasing Managers’ Index (PMI) indicates that Bitcoin’s market cycles may last longer than usual, coinciding with current economic challenges. The ISM PMI, which measures US industrial activity, has remained below the neutral 50 mark for seven consecutive months, denoting contraction in the manufacturing sector. The correlation between the ISM PMI and Bitcoin prices suggests that if this pattern continues, Bitcoin’s current market cycle could be significantly prolonged compared to historical norms. Analysts argue that since all previous Bitcoin cycle peaks align with the PMI's cyclical highs, ongoing economic struggles, including high tariffs and weak global demand, could inhibit growth and extend the cycle. Despite the decline in the PMI, it does not necessarily indicate an impending recession, as a sustained reading above 42.3 usually corresponds with broader economic growth. Comments from industry leaders highlight ongoing difficulties, including inflationary pressures resulting from tariffs, affecting profitability and investment in manufacturing sectors.

Source 🔗