The Recovery of US Manufacturing Industry Impacts Interest Rate Expectations, Bitcoin Temporarily Drops to 68K
The unexpected expansion of manufacturing activity in the United States and the strengthening expectations of the Federal Reserve (Fed) not rushing to cut interest rates have caused a decline in risk assets such as stocks and Bitcoin. Meanwhile, the communication application Telegram, highly associated with TON, has recently received a series of good news, leading to a significant surge in TON and quietly entering the top ten cryptocurrencies.
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PMI above 50, expectations of rate cut in June decreased
Decline in risk assets such as Bitcoin
Trends of the top ten cryptocurrencies by market capitalization
Last night, the Institute for Supply Management (ISM) released the US manufacturing Purchasing Managers’ Index (PMI) for March, which rose from 47.8 in February to 50.3. This is the first time since September 2022 that the PMI has surpassed the 50-point threshold, indicating that the manufacturing industry, which has been affected by the high-interest rate environment, is starting to recover.
This has raised concerns among investors that the probability of the Fed initiating an interest rate cut cycle in June has decreased. According to data from CME FedWatch, investors now believe that the probability of a rate cut in June has dropped to 53.5% (compared to 70.8% on March 21).
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Bitcoin was impacted by the data last night and briefly dropped to $68,062. Bitcoin has been consolidating within a range recently, and it will need to break through $72,000 to trigger more buying interest. On the downside, it needs to hold above the $68,000 level.
The top ten cryptocurrencies by market capitalization (excluding stablecoins) are all showing a downward trend. The meme coin Dogecoin (DOGE), the originator of meme coins, has risen to sixth place, indicating that meme coins are always popular. In addition, the communication application Telegram, highly associated with TON, has recently received a series of good news, leading to a 150% surge in TON in March and quietly entering the top ten.
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21Shares launches collateralized ETP TONN, TON surges 150% in March
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FedWatch
PMI
TON
Bitcoin
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