Bitcoin (BTC) rose as positive Chinese manufacturing data eased global growth concerns and improved risk appetite in global financial markets.
China’s manufacturing Purchasing Managers Index (PMI) rose to 52.6 in February from 50.1 in January, the highest in a decade, according to data released on March 1. A number above 50 indicates an increase in activity. The non-manufacturing PMI also rose to 56.3 from 54.4 in January.
The good news for China, the world’s factory and the largest trading partner of the US and Germany, has pushed the US dollar lower against major currencies and boosted risk assets such as bitcoin and stocks.
BTC, the top cryptocurrency by market capitalization, jumped 4% from $23,000 to nearly $24,000 before slipping back to $23,700, according to CoinDesk data. The dollar index, which measures the value of greenbacks against major currencies, fell 0.5% to 104.36.
Hong Kong’s Hang Seng Index rose 4.15%, leading a risk-on recovery in Asian stock indices. Futures tracking the major European indices and Wall Street’s high-tech Nasdaq Composite also posted modest gains. Bitcoin generally correlates positively with the Nasdaq and the stock market.
The early rally in crypto assets is consistent with the recent trend of Asian flows leading market strength.
“Since the November trough, BTC has seen a healthy and steady uptrend during Asian trading hours, with no notable days of downside. January’s major gains occurred during US trading hours, while last week’s gains occurred during European trading hours,” K33 Research analyst Vetle Lunde said in a Feb. 21 note. says.
Markets see the future of cryptocurrency markets in the East as recent liquidity injections by the People’s Bank of China compensate for the ongoing US Federal Reserve (Fed) tightening and sustain bids for risky assets. It is seen as trend-dependent.
“Liquidity continues to be a big offset to tightening interest rates, and it comes mainly from the East. ,” said David Brickell, director of institutional sales for institutional-focused technology platform Paradigm, in a Feb. 28 newsletter, Macro Pulse. ” says.
Interest in cryptocurrencies has been on the rise in Hong Kong in recent days, sparking speculation that China may eventually ease restrictions. Hong Kong’s Securities and Futures Commission (SFC) announced last month that it would be discussing proposed requirements for operators of cryptocurrency trading platforms.
“Hong Kong is seen as a proving ground for mainland China, and the potential for huge personal fortunes to flow into crypto will maintain positive sentiment to offset US-led FUD,” Brickell notes. .
From a technical perspective, a convincing move above the February highs of around $25,000 would be needed to reinforce the near-term bullish bias. That level was at the top of the rise even in August.
Alex Kuptsikevich, Senior Market Analyst at FxPro, said: “The weekly technical image suggests that only a move above $25,000 can reinforce a bullish view on the market. “It has said.
｜Translation: coindesk JAPAN
｜Editing: Toshihiko Inoue
| Image: CoinDesk/Highcharts.com
｜Original: Bitcoin Jumps 4% as Upbeat China Manufacturing Data Improves Risk Appetite