The USD received a blow across the market board yesterday, and many might be wondering why Bitcoin rose sharply as well, it's simply due to the CB Consumer Confidence released in the US. The news portrays the present and future feelings and views of consumers on the economy, and it either encourages or discourages more spending and borrowing depending on the data released.
The news was released at 3:00 PM GMT+1 and was as impactful as I expected. The gist is that despite the improvement in the US economy, with Inflation subsiding and Retail sales showing improvement, the Manufacturing and Service PMIs are still facing challenges amongst others. This is because people and the economy are persistently negative on borrowing, spending/financial confidence. However, the news effect clearly shows that the market interpreted it as a need for a more cautious approach to the USD and that people need alternatives to the USD during this time of financial instability.
Economists consensus it to increase by 2 (116.0), but it rather decreased by 7.9 (106.1) from the last figure released and even beat the economists' expectations by 10.1. This is huge and good news for Bitcoin and a great relief from the major support.
"A more willingness to invest in assets like Bitcoin and others rather than spending or borrowing more USD happens in this situation."