Bitcoin price targets $22,000 as US PMI data hits lowest level since May 2020

BTC Price Rebounds, US Dollar Falls From New Twenty-Year Highs As PMI Numbers Rekindle Recession Rumors .

Market Update

Bitcoin (BTC) headed for multi-day highs after Wall Street opened on Aug. 23 as US economic data sent the dollar tumbling.

BTC/USD 1-Hour Candle Chart ( Bitstamp). Source: TradingView

Dollar suffers as data shows earnings 'compressed'

Data from Cointelegraph Markets Pro and TradingView tracked BTC/USD as it targeted $21,700 at the time of writing, near resistance in place since the week's nearly 12% drop last.

The pair gained momentum as US Purchasing Managers' Index (PMI) prints for August showed a decline from the previous month, hitting all-time lows since May 2020 at the height of the first round of COVID-19 related lockdowns.

“The S&P Global Flash US Services Business Activity Index came in at 44.1 in August, from 47.3 in July, indicating a further reduction in overall services activity,” said one press release from the curator S&P Global.

“The decline in business activity was steep overall and the fastest since May 2020. Service providers noted that interest rate hikes and inflation dampened customer spending as customers disposable income has been reduced."

Yuck! The US composite #PMI just fell to 45.0! This is near #recession levels. The services PMI is down to 44.1, while an increase to 49.8 was expected. pic.twitter.com/GwSKfnOXS3

— jeroen blokland (@jsblokland)