The US Services PMI, measured by ISM, fell from 51.6 in April to 49.9 in May, signaling contraction in the sector for the first time since June 2024. The expectation was for an increase to 52.2, which exacerbated the negative surprise.
This data suggests a weakening of economic activity, which could increase bets that the Fed will anticipate interest rate cuts.
In the crypto market, this tends to be positive: lower interest rates reduce the cost of capital and favor risk assets like Bitcoin and altcoins, which may start to react with a slight increase in light of this signal of economic slowdown in the coming days.