A gauge tracking the health of the U.S. economy just hit its highest monthly result since August 2022, and cryptocurrency analysts say it could signal a turnaround for Bitcoin, which is trading at $78,000.
The Manufacturing Purchasing Managers’ Index (PMI), a measure of U.S. manufacturing activity, recorded a score of 52.6 in January, beating the market consensus of around 48.5 and ending 26 consecutive months of economic contraction, ISM he stated in Monday’s report.
The index score is a closely watched measure by investors and the Federal Reserve that is used to assess economic strength, inflation risk and whether monetary policy should be tightened or eased.
A score above 50 means the economy is growing, while a score below 50 means the economy is shrinking. The last time the ISM reading was above 52.6 was in August 2022.
Bitcoin analysts say the sturdy ISM reading could signal a turnaround for Bitcoin after it hit a 10-month low of $75,442 on Monday.
The data shows that the rise and fall in the production rate from mid-2020 to 2023 closely tracked Bitcoin (BTC) price movements over the same period.
“Historically, these PMI reversals represent a move into risk-on conditions,” Strive VP of Bitcoin Strategy Joe Burnett he said, indicating that Bitcoin rose following increases in the manufacturing index score in 2013, 2016 and 2020.
Pseudonymous Bitcoin Analyst, Plan C, in addition: “If you don’t quickly upgrade your understanding of the Bitcoin cycle from a 4-year mirage halving mindset to a business cycle/macro mindset… You will completely miss the second part of the Bitcoin bull run!”
On the other hand, Into The Cryptoverse founder and CEO Benjamin Cowen excellent that Bitcoin does not always track the manufacturing index, adding that “Bitcoin is not the economy.”
The ISM Manufacturing PMI fell or remained flat for several months last year, while Bitcoin rose to a high of $126,080.
BTC price predictions are far-reaching
Bitcoin has had a tumultuous few months since the October 10 liquidation, when more than $19 billion in leveraged crypto positions were suddenly liquidated from the ecosystem.
At its current price, Bitcoin is down almost 38% from its October high, while precious metals and the stock market have mostly trended higher, causing sentiment to decline in the Bitcoin market.
Institutional investors have different opinions on how Bitcoin will perform in 2026.
Related: 4 reasons why 75 thousand dollars could be the lowest Bitcoin price in 2026
In a 2026 forecast report, cryptocurrency venture capital firm Dragonfly said that Bitcoin’s price will exceed $150,000 by the end of the year, while Fundstrat research head Tom Lee on January 20 predicted that Bitcoin will retreat further before making a late-stage comeback and setting a recent high.
Galaxy Digital took advantage of the opportunity to predict and he said The year 2026 would be “too chaotic” to even guess, saying Bitcoin could cost anywhere from $50,000 to $250,000.
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