Risky assets like $BTC perform best in risk-on mode, signaled by the economy entering an expansion phase.
How do we know whether the economy is expanding or contracting? Simple, through the ISM PMI Manufacturing.
If PMI is rising, it signals growth, more orders, more production, more employment.
The fact is, over the past year, ISM PMI has been declining heavily, telling us the economy's been steadily slowing down. That's also one reason why Bitcoin has underperformed during that period, as the economy is slowing down, hence lower liquidity.
But now, the latest PMI print for January just spiked from 47.9 to 52.6, a 4-year high.
If this trend holds, either growing or staying elevated, it signals expansion is back on the table.
And guess who benefits? Bitcoin. Economic data often tells more than meets the eye, so make sure to pay attention to them.
