The world’s largest cryptocurrency by market capitalization jumped almost 4%, to nearly $26,800, on Wednesday, and held above $26,000 for over 24 hours. As of Thursday morning, Bitcoin still was hovering around $26,100.
The total market capitalization for all cryptocurrencies, about $1.06 trillion, showed a 1% day-over-day increase. The crypto market’s upswing mirrors a rise in the stock market, as the S&P 500 is also up about 1%, and the Bitcoin’s price to poor PMI—Purchasing Managers’ Index—numbers, a proxy for economic trends in the manufacturing and service industries. Lower PMI numbers indicate a shrinking market, which bodes well for a reduction in inflation and “suggests a lower likelihood of a rate hike in September,” according to James Butterfill, head of research at CoinShares, a European alternative assets manager.
