US PMI Data Signals Economic Slowdown, Inflation Persists Bitcoin Drops 4.5% Amid Fed Uncertainty

On May 5th, the United States is set to release multiple PMI data points, with market expectations leaning towards a slowdown in economic momentum but persistent inflationary pressure. The S&P Services and Composite PMI are anticipated to decline to 52.1 and 52.2, respectively, signaling a deceleration in economic growth. Conversely, the ISM Non-Manufacturing PMI is projected to increase to 52.6, highlighting the continued strength of the service sector. The employment index is forecasted to improve to 47.7, although it remains below the 50 mark, indicating contraction. The price paid index is expected to rise to 62.6, suggesting that inflationary pressures are likely to persist.

In the cryptocurrency market, Bitcoin (BTC) experienced a decline from a high of $97,800 to $93,400, intensifying short-term volatility. Despite continuous inflows into Bitcoin ETFs, market participants remain cautious due to uncertainties surrounding the Federal Reserve's policy direction.

Analysts from Bitunix advise that in the near term, BTC investors should closely monitor the $93,000 support level. A breach below this level could trigger further downward movements. It is recommended that investors exercise caution, manage their positions prudently, stay attuned to economic data releases and policy developments, and be prepared to adjust their strategies flexibly.