In July 2025, the US manufacturing sector witnessed a contraction as the PMI index from S&P Global and ISM fell below 50. This indicates a slowdown in economic activity.
State of US Manufacturing Sector
The drop in PMI below 50 signifies contraction in the US manufacturing sector. This marks the first decrease of the year, indicating a slowdown in manufacturing activities.
Impact on Cryptocurrencies
The PMI data may lead to cautious behavior among investors, affecting cryptocurrencies like BTC and ETH. No immediate changes have been detected on-chain.
Expert Opinion
Raoul Pal, CEO of Real Vision, stated, "Weak PMI data often foreshadows broader risk-off moves and can pressure liquidity-sensitive assets like crypto."
Given the current PMI data, market participants are anticipated to act with caution, potentially impacting cryptocurrency valuations. Ongoing analysis in this area continues.
