Bitcoin dropped sharply below the $113,000 mark on Tuesday following the release of the ISM Services PMI, which came in hotter than expected — casting fresh doubts on near-term Federal Reserve rate cuts.
🧾 ISM Data Surprises to the Upside
The Institute for Supply Management (ISM) reported a Services PMI reading of 56.4, well above market expectations of 52.0. The data suggests that the U.S. services sector remains robust, fueling concerns that inflationary pressures could persist.
📉 Bitcoin’s Response
Bitcoin, which had been hovering around $117,000 in early trading, fell sharply after the report, dipping to as low as $112,650. The move erased gains from earlier optimism over potential Fed easing and highlights the asset’s sensitivity to macroeconomic signals.
🏦 Fed Policy Outlook in Focus
Markets had priced in a possible rate cut as early as September, but the stronger-than-expected ISM number may push those expectations further out. A resilient services sector could give the Fed more reason to delay rate cuts, potentially impacting risk assets like cryptocurrencies.
📊 Market Reaction
Bitcoin: ↓ 3.7% to $112,650
Ethereum: ↓ 2.8% to $6,230
S&P 500 Futures: ↓ 0.4%
10-Year Treasury Yield: ↑ to 4.38%
