Manufacturing PMI: BTC Cycles

Manufacturing PMI: Bitcoin Cycles

Bitcoin price alongside Manufacturing PMI and Bitcoin Halving dates.

As well as being influenced by participant activity within its own ecosystem, Bitcoin price is also influenced by liquidity, credit, and sentiment in global markets.

To help demonstrate this the Manufacturing PMI data is overlaid with Bitcoin Halving periods. It can be argued that both internal and external factors have an impact on Bitcoin price and are therefore important to view alongside each other.

On this chart the Manufacturing PMI data set is overlaid with Halving Epoch.

circle Second Epoch

circle Third Epoch

circle Fourth Epoch

Manufacturing PMI can be seen as a reflection of confidence in the economy.

The Manufacturing Purchasing Managers’ Index (PMI) is an index of the prevailing direction of economic trends in the United States manufacturing sector. It consists of a diffusion index that summarizes whether market conditions, as viewed by purchasing managers, are expanding, staying the same, or contracting. The PMI is based on a monthly survey of supply chain managers across 19 industries in the manufacturing sector in the United States. The survey covers areas such as new orders, production, employment, supplier deliveries, and inventories.

As Bitcoin continues to be adopted over time it remains to be seen whether the observable relationship with Manufacturing PMI cycles will remain or whether the correlation will fade due to evolving user demand towards Bitcoin.