On Wednesday, the price of Bitcoin (BTC) increased as positive manufacturing statistics from China allayed fears about global growth and increased risk appetite in international financial markets.
According to information released on Wednesday, China's official manufacturing Purchasing Managers' Index increased to 52.6 in February, the fastest increase in more than ten years, from 50.1 in January. An increase in activity is indicated by a value above 50. The non-manufacturing PMI increased from January's reading of 54.4 to 56.3.
The U.S. dollar fell against major currencies as a result of the good news coming out of China, the largest trade partner of the U.S. and Germany and the world's largest manufacturer, while risky assets like bitcoin and equities rose.
According to data from coinDesk, the top cryptocurrency by market value increased by 4% from $23,000 to about $24,000 before declining slightly to $23,700. The dollar index, which measures how the dollar compares to other major currencies, dropped 0.5% to 104.36.
The risk-on comeback in Asian market indexes was led by the 4.15% increase in Hong Kong's Hang Seng index. Major European indexes and futures linked to Nasdaq, the heavily weighted Nasdaq index on Wall Street, also registered slight rises. Bitcoin and the Nasdaq, as well as stock markets in general, have a favorable correlation.
The early Wednesday cryptocurrency rebound is consistent with the current pattern of Asian flows driving market strength.