• Bitcoin (BTC) rose 4% on Wednesday following upbeat China manufacturing data, which improved risk appetite in global financial markets.
• The official purchasing managers’ index in China rose to 52.6 in February, the highest in over a decade, while non-manufacturing PMI also increased.
• The positive news out of China pushed the U.S. dollar lower against major currencies, lifting risk assets like bitcoin and stocks higher worldwide.
Upbeat Data Sparks Global Risk Appetite
China’s official purchasing managers’ index (PMI) rose to 52.6 in February, the highest reading in over a decade, according to data released on Wednesday. This increase is coupled with an uptick in non-manufacturing PMI, indicating strong economic growth potential for the world’s largest trading partner of the U.S. and Germany. As a result of this positive news out of China, the U.S dollar fell 0.5% against major currencies while global markets reacted positively with Asian equity indices like Hong Kong’s Hang Seng rising by 4.15%.
Bitcoin Follows Global Stock Markets Higher
The leading cryptocurrency by market value jumped 4% from $23,000 to nearly $24,000 before pulling back slightly to $23,700 as these optimistic indicators sparked risk appetite among investors worldwide and drove stock markets higher globally including futures tied to Wall Street’s tech-heavy Nasdaq index which posted modest gains as well. Bitcoin is positively correlated with both Nasdaq and stock markets in general so this trend was expected and consistent with recent patterns seen when Asian flows lead market strength upwards – as was seen on Wednesday morning when BTC surged shortly after the Chinese data was released before stabilizing somewhat later on at around $23700 per coin according to CoinDesk data.
Risk Assets Favored Over US Dollar
The weak US Dollar combined with strong performance from risk assets sent investors flocking towards cryptocurrencies such as Bitcoin as they sought safe havens from potential currency devaluations or other macroeconomic concerns that could arise due to geopolitical tensions or other factors outside their control – especially given that many countries have been dealing simultaneously with both pandemic-related lockdowns and spiking inflation since 2020 began which has made it increasingly difficult for them to manage their economies effectively without relying heavily on digital currencies like Bitcoin or Ethereum for example which offer more stability than traditional fiat money does due to their decentralized nature & finite supply i t can be argued that investing even small amounts into cryptocurrencies now may eventually pay off handsomely if those trends continue going forward despite any short term volatility we might see along the way too!
Is Now A Good Time To Invest In Cryptocurrency?
Given how much attention cryptocurrencies are getting lately due to their increasing popularity among investors looking for new ways of diversifying their portfolios away from traditional assets like stocks & bonds etc., now may be an opportune time for those interested individuals looking into investing into digital currencies such as Bitcoin or Ethereum but who are still unsure about taking that plunge just yet – especially since these types of assets tend not operate within the same regulations (or lack thereof!) that govern traditional investments so it pays off more than ever before nowadays when researching thoroughly beforehand & being aware of any potential risks associated with each individual asset one might consider putting money into beforehand too!
Conclusion
In conclusion then: although there are still plenty unknowns surrounding cryptocurrencies such as Bitcoin & others today it seems clear that there’s no stopping their rise either – especially given how much attention they’re getting lately due mainly thanks largely thanks to optimistic economic outlooks stemming from recent favorable data releases from leading world powers like China plus an overall weakening US Dollar too – meaning investing even small amounts into these kinds of digital assets now may eventually pay off handsomely if those trends continue going forward despite any short term volatility we might see along the way too!