PMI Surprise and US Jobs Data Push Bitcoin Volatility as BTC Rebounds to $87.6K
Fresh US employment and preliminary PMI data jolted crypto markets. The unemployment rate held at 4.6%, while S&P Global’s preliminary PMI came in below expectations, signalling slower growth, weaker sales, stagnant services, falling factory orders and rising input costs — inflation at its highest since November 2022. Traders initially sold Bitcoin beneath $87,000 before BTC quickly recovered to about $87,600. Market commentators say the PMI slowdown could ease near-term Federal Reserve rate-hike pressure, a tailwind for risk assets; but the inflation detail in the PMI complicates the outlook and may cap upside. With the Fed decision imminent, traders see a possible short-term test of $90,000 if BTC sustains gains, yet elevated inflationary signals and mixed data introduce uncertainty that could limit a sustained rally. Disclaimer: not investment advice.
Neutral
The combined data presents mixed signals for Bitcoin. PMI weakness is typically crypto-positive because it can reduce near-term Fed tightening expectations, supporting risk assets and enabling short-term price rebounds — as seen with BTC recovering to $87.6K and a potential test of $90K. Conversely, the PMI also highlighted rising input costs and elevated inflation (highest since Nov 2022), which could keep the Fed cautious and limit a sustained bullish trend. The 4.6% unemployment rate is neutral-to-moderately supportive but does not decisively alter the policy outlook. Given the imminent Fed decision, traders face elevated event risk: short-term upside is plausible if risk appetite returns, but inflationary details and mixed macro signals raise the probability of volatile, range-bound action rather than a clear breakout. Therefore the net near-term price impact is best classified as neutral.