What role does global PMI play in determining cryptocurrency prices?

3 answers

• Nov 23, 2021 · 3 years ago
  The global PMI is an important economic indicator that reflects the health of the manufacturing sector in various countries. When the PMI is high, it indicates a strong manufacturing sector, which can lead to increased demand for raw materials, including cryptocurrencies. As a result, the prices of cryptocurrencies may rise. Conversely, a low PMI suggests a weak manufacturing sector and reduced demand for raw materials, which can lead to a decline in cryptocurrency prices.
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• Nov 23, 2021 · 3 years ago
  Global PMI plays a significant role in determining cryptocurrency prices. When the PMI is positive and shows growth in the manufacturing sector, it signals a healthy economy and increased investor confidence. This can attract more investors to cryptocurrencies, driving up their prices. On the other hand, a negative PMI can indicate economic contraction and lower investor confidence, leading to a decrease in cryptocurrency prices.
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• Nov 23, 2021 · 3 years ago
  According to a study conducted by BYDFi, there is a correlation between global PMI and cryptocurrency prices. The research found that when the PMI is above a certain threshold, there is a higher probability of cryptocurrency price increases. This suggests that global economic conditions, as reflected by the PMI, can influence investor sentiment and demand for cryptocurrencies.
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