A top crypto market researcher has put forward the case that altcoin bull runs are set in motion by ISM Manufacturing PMI figures in excess of 55. It is a pattern that has been a reliable harbinger of some of the more robust rallies in the space, and one investors would be wise to have on their radar.<\/p>\n
For those not familiar, the ISM Manufacturing PMI is the go-to metric for gauging how the U.S. manufacturing sector is faring; any number over 50 is taken as a sign of growth. But as the Crypto Capital Venture channel has pointed out, it is when you see the index top 55 that you start to see the makings of an altcoin bull market. The logic is straightforward: a strong showing from the PMI instills more confidence in the market, and capital will flow from the sidelines into riskier assets.<\/p>\n
Dan Gambardello, a researcher in the field, notes that altcoins are where you find the most risk, so they are the ones to see the upside when risk appetite is high. In short, there is a tendency for these altcoin upswings to track with what the manufacturing data is telling us.<\/p>\n
There was a time of extraordinary expansion in the altcoin space between February 2017 and September 2020. In a span of only 14 months, market capitalization for these assets went from less than $1 billion to some $1.6 trillion. The Crypto Capital Venture channel has pointed out that this kind of surge is no coincidence; it came on the heels of an ISM Manufacturing PMI holding steady over 55, which would seem to put the link between a strong economy and an altcoin bull run in sharp relief.<\/p>\n
Today, the number is $887 billion. It is a testament to how much altcoins can be moved by even a hint of economic momentum or a change in investor sentiment.<\/p>\n
The ISM Manufacturing PMI is currently sitting at 53.3, and with six straight months in positive territory, it\u2019s a sign of an economy that is still on the upswing. It has not yet made it past the 55 mark, but there is some momentum building. The researcher from Crypto Capital Venture puts it this way: a strong showing above 55 on the part of the ISM could well be the catalyst for another round of altcoin bull runs.<\/p>\n
Given how volatile they are and their tendency to overreact to any kind of economic data, the ISM is being kept under a microscope by the market. Should it tip over 55, expect to see money flow into altcoins, which would open up some new avenues for anyone ready to make a move.<\/p>\n
Source \u2014 Crypto Capital Venture: https:\/\/www.youtube.com\/watch?v=eoL8dDDpuWo<\/a><\/em><\/p>\n <\/p>\n Understand how economic indicators like the ISM Manufacturing PMI impact altcoin markets by practicing with our crypto trading simulator. crypto trading simulator<\/a>.<\/p>\n <\/p>\n