Bitcoin Struggles Below $80,000 as US Manufacturing Surges
By John Nada·Feb 3, 2026·2 min read
Bitcoin struggles below $80,000 as US manufacturing signals growth. Robust PMI raises questions about financial conditions and market sentiment.
Bitcoin finds itself trapped below $80,000, facing headwinds from a robust US manufacturing signal. On February 2, Secretary of Commerce Howard Lutnick announced significant manufacturing expansion, attributed to President Trump's trade policies. This came after the Institute for Supply Management reported the Manufacturing PMI surged to 52.6, marking its strongest reading since mid-2022 and ending a year-long contraction.
Analysts noted that new orders and production climbed significantly, indicating potential growth. However, Bitcoin is trading around $78,000, down about 38% from its 2025 all-time high, amid recent volatility that has dampened market sentiment. The question now isn't just about the PMI's strength but whether it will lead to looser financial conditions or prompt the Federal Reserve to maintain restrictive policies.
Despite the initially bullish PMI reading, there are concerns about rising input costs, which could lead to higher interest rates and tighter liquidity—conditions that typically weigh on Bitcoin. Some analysts argue that past PMI surges have coincided with Bitcoin bull runs, while others warn against relying too heavily on these indicators, citing historical divergences.
As Bitcoin navigates this complex landscape, it faces pressure from ETF investors holding significant unrealized losses. January saw net outflows from US spot Bitcoin ETFs, reflecting the challenges of a regulated market. The tension between macroeconomic indicators and Bitcoin's performance is palpable, underscoring the uncertainty ahead.
In this environment, Bitcoin's trajectory remains uncertain, caught between potential macroeconomic recovery and tightening financial conditions. Investors will need to watch for confirmation of ongoing growth to gauge Bitcoin's next move.