TLDR U.S. ISM Manufacturing PMI jumped to 52.6% in January, beating expectations of 48.5% and marking the highest reading since August 2022 Bitcoin price climbedTLDR U.S. ISM Manufacturing PMI jumped to 52.6% in January, beating expectations of 48.5% and marking the highest reading since August 2022 Bitcoin price climbed

Bitcoin Bounces Back as U.S. Manufacturing Hits Two-Year High

3 min read

TLDR

  • U.S. ISM Manufacturing PMI jumped to 52.6% in January, beating expectations of 48.5% and marking the highest reading since August 2022
  • Bitcoin price climbed 2.76% following the PMI release after hitting a yearly low of $75,000 the previous day
  • The PMI score ended 26 consecutive months of contraction in U.S. manufacturing activity
  • New Orders Index soared to 57.1% from 47.4% in December, while Production Index reached 55.9%
  • Some analysts believe the PMI reversal historically signals improved conditions for Bitcoin and risk assets

The U.S. manufacturing sector posted its strongest performance in over two years. The Institute for Supply Management Manufacturing PMI reached 52.6% in January 2025.

The reading beat market expectations by a wide margin. Analysts had predicted a score of 48.5%.

Bitcoin traded at $78,565 following the economic data release. The cryptocurrency gained 2.76% in 24 hours after the PMI announcement.

Bitcoin (BTC) PriceBitcoin (BTC) Price

The ISM score marks the first expansion in manufacturing activity after 26 months of contraction. Any reading above 50 indicates economic expansion.

The last time the index reached this level was August 2022. That period coincided with different market conditions for Bitcoin.

The New Orders Index jumped to 57.1% from December’s 47.4%. This represents the highest level since February 2024.

Production activity continued its growth streak for the third month. The Production Index stood at 55.9% in January.

Bitcoin Price Movement Follows Economic Data

Bitcoin had dropped to $75,000 on the previous day. This marked a new low for 2025.

The cryptocurrency recovered after the manufacturing data release. Trading data from TradingView confirmed the price movement.

Susan Spence chairs the ISM committee. She attributed the recovery to improved demand conditions across the manufacturing sector.

The Prices Index reached 59.0% in January. This indicates elevated input costs for U.S. manufacturers.

Supplier deliveries fell to 54.4%. This pattern typically appears when demand increases.

Employment in manufacturing remained in contraction territory at 48.1%. However, this showed improvement from December’s 44.8%.

Some market analysts noted historical patterns between the PMI and Bitcoin. The manufacturing index movements from mid-2020 through 2023 tracked similar patterns to Bitcoin price changes.

Joe Burnett serves as vice president of Bitcoin strategy at Strive. He pointed out that Bitcoin rallied following PMI reversals in 2013, 2016, and 2020.

Other analysts expressed caution about drawing direct connections. Benjamin Cowen founded Into The Cryptoverse and noted that Bitcoin doesn’t always move with the manufacturing index.

Bitcoin has declined nearly 38% from its October high. The cryptocurrency reached $126,080 before the recent downturn.

Financial markets reacted quickly to the manufacturing data. Risk assets saw increased activity following the announcement.

The ISM report showed all five subindexes improved in January. This broad-based improvement reflected stronger conditions across the manufacturing sector.

The post Bitcoin Bounces Back as U.S. Manufacturing Hits Two-Year High appeared first on CoinCentral.

Disclaimer: The articles reposted on this site are sourced from public platforms and are provided for informational purposes only. They do not necessarily reflect the views of MEXC. All rights remain with the original authors. If you believe any content infringes on third-party rights, please contact service@support.mexc.com for removal. MEXC makes no guarantees regarding the accuracy, completeness, or timeliness of the content and is not responsible for any actions taken based on the information provided. The content does not constitute financial, legal, or other professional advice, nor should it be considered a recommendation or endorsement by MEXC.

You May Also Like

Shibarium May No Longer Turbocharge Shiba Inu Price Rally, Here’s Reason

Shibarium May No Longer Turbocharge Shiba Inu Price Rally, Here’s Reason

The post Shibarium May No Longer Turbocharge Shiba Inu Price Rally, Here’s Reason appeared on BitcoinEthereumNews.com. Shibarium, the layer-2 blockchain of the Shiba Inu (SHIB) ecosystem, is battling to stay active. Shibarium has slipped from hitting transaction milestones to struggling to record any transactions on its platform, a development that could severely impact SHIB. Shibarium transactions crash from millions to near zero As per Shibariumscan data, the total daily transactions on Shibarium as of Sept. 16 stood at 11,600. This volume of transactions reflects how low the transaction count has dropped for the L2, whose daily average ranged between 3.5 million and 4 million last month. However, in the last week of August, daily transaction volume on Shibarium lost momentum, slipping from 1.3 million to 9,590 as of Aug. 28. This pattern has lingered for much of September, with the highest peak so far being on Sept. 5, when it posted 1.26 million transactions. The low user engagement has greatly affected the transaction count in recent days. In addition, the security breach over the weekend by malicious attackers on Shibarium has probably worsened issues. Although developer Kaal Dhairya reassured the community that the attack to steal millions of BONE tokens was successfully prevented, users’ confidence appears shaken. This has also impacted the price outlook for Shiba Inu, the ecosystem’s native token. Following reports of the malicious attack on Shibarium, SHIB dipped immediately into the red zone. Unlike on previous occasions where investors accumulated on the dip, market participants did not flock to Shiba Inu. Shiba Inu price struggles, can burn mechanism help? With the current near-zero crash in transaction volume for Shibarium, SHIB’s price cannot depend on it to support a rally. It might take a while to rebuild user confidence and for transactions to pick up again. In the meantime, Shiba Inu might have to rely on other means to boost prices from its low levels. This…
Share
BitcoinEthereumNews2025/09/18 07:57
👨🏿‍🚀TechCabal Daily – When banks go cashless

👨🏿‍🚀TechCabal Daily – When banks go cashless

In today's edition: South Africa's biggest banks are going cashless || Onafriq and PAPSS pilot Naira wallet transfers from Nigeria to Ghana || South Africa just
Share
Techcabal2026/02/04 14:02
Wormhole launches reserve tying protocol revenue to token

Wormhole launches reserve tying protocol revenue to token

The post Wormhole launches reserve tying protocol revenue to token appeared on BitcoinEthereumNews.com. Wormhole is changing how its W token works by creating a new reserve designed to hold value for the long term. Announced on Wednesday, the Wormhole Reserve will collect onchain and offchain revenues and other value generated across the protocol and its applications (including Portal) and accumulate them into W, locking the tokens within the reserve. The reserve is part of a broader update called W 2.0. Other changes include a 4% targeted base yield for tokenholders who stake and take part in governance. While staking rewards will vary, Wormhole said active users of ecosystem apps can earn boosted yields through features like Portal Earn. The team stressed that no new tokens are being minted; rewards come from existing supply and protocol revenues, keeping the cap fixed at 10 billion. Wormhole is also overhauling its token release schedule. Instead of releasing large amounts of W at once under the old “cliff” model, the network will shift to steady, bi-weekly unlocks starting October 3, 2025. The aim is to avoid sharp periods of selling pressure and create a more predictable environment for investors. Lockups for some groups, including validators and investors, will extend an additional six months, until October 2028. Core contributor tokens remain under longer contractual time locks. Wormhole launched in 2020 as a cross-chain bridge and now connects more than 40 blockchains. The W token powers governance and staking, with a capped supply of 10 billion. By redirecting fees and revenues into the new reserve, Wormhole is betting that its token can maintain value as demand for moving assets and data between chains grows. This is a developing story. This article was generated with the assistance of AI and reviewed by editor Jeffrey Albus before publication. Get the news in your inbox. Explore Blockworks newsletters: Source: https://blockworks.co/news/wormhole-launches-reserve
Share
BitcoinEthereumNews2025/09/18 01:55