US economic data continues to have a significant impact on the cryptocurrency markets. The recently released US Services PMI data caught the attention of cryptocurrency investors. The price movements of Bitcoin and other cryptocurrencies appear to be closely related to the fiscal policies and economic indicators of the US.
US Data and Bitcoin Relationship
It is known that the data released in the US has historically paved the way for fluctuations in the price of Bitcoin. Strengthening of the US dollar also tends to have a negative impact on the crypto markets. The newly released US Services PMI data came in below expectations at a value of 51.7, while the US Manufacturing PMI recorded a value of 52.5, exceeding expectations. These data are considered important indicators for both the US economy and the cryptocurrency markets.
Effects on Cryptocurrency Markets
Cryptocurrency experts point out that a strong US economy could lead to fluctuations in the cryptocurrency markets due to the rise of the dollar index. However, it is also stated that a weakening of the US economy could lead to an increase in cryptocurrencies considered risky assets. The Federal Reserve’s interest rate decision announced yesterday also had a significant impact on the markets and cryptocurrencies.
The markets are facing a week with critical decisions. The interest rate decision of the US Federal Reserve, followed by the interest rate decision of the Central Bank of the Republic of Turkey (CBRT), can increase volatility in the markets and cause fluctuations in the prices of cryptocurrencies.
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