In its analysis, Crypto Rover shows that there is a strong association between altcoin dominance and the US ISM Manufacturing PMI. In case the PMI is an indicator of economic growth, above 55 in general, altcoins perform well. As the PMI goes down, altcoins go down too. Comparison of the charts indicates that this relationship has been constant and stable since 2019, meaning that the dynamics of macroeconomic conditions directly determine the liquidity cycles of altcoins.
Existing PMI contraction
The most recent PMI score for November 2025 is 48.2, indicating further contraction in the US manufacturing industry. This coincides with the fact that Bitcoin leads by approximately 59 percent and the general vulnerability of the altcoin market. According to analysts at sites like CoinEdition and Phemex, Bitcoin finds it easier and altcoins even harder to capture capital in volatile macroeconomic times.
PMI recovery would be good for Altcoins
The past trend indicates that altcoins will experience a resurgence in case the PMI exceeds 50 by 2026 and the economy grows again. A deep rally above 55 would be even greater and lead to a massive liquidity shift away from substantial assets like BTC and ETH towards riskier altcoins. So far, the macro environment continues to support Bitcoin’s dominance.
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