Bitcoin derivatives market panic sentiment intensifies, core PCE could be a key catalyst for market movement

Odaily Odaily reports that risk appetite in the Bitcoin derivatives market has notably weakened, with investors paying high premiums to hedge against downside risks, pushing overall market sentiment close to a panic zone. Institutional analysis indicates that the core catalyst for a short-term market recovery will come from the release of the US Core PCE Price Index for May at 8:30 AM Eastern Time.

Market consensus forecasts that the year-on-year increase in the core PCE for May will be 3.4%, a slight rise from April's 3.3%, marking the highest level since the end of 2023. As the Federal Reserve's key inflation gauge, if the actual data comes in below market expectations, it would reinforce the market's view that inflation is continuing to cool, reduce the likelihood of further rate hikes by the Fed, and improved liquidity expectations could quickly restore sentiment for risk assets like Bitcoin, potentially sparking a sentiment-driven recovery rally. (Coindesk)