Bitcoin Derivatives Market Sees Rising Fear Sentiment, Core PCE Could Be Key Catalyst for Price Action

Odaily Odaily reports that risk appetite in the Bitcoin derivatives market has notably weakened, with investors paying high premiums to hedge against downside risks. Overall market sentiment is approaching the panic zone. Institutional analysts point out that the short-term catalyst for market recovery will be the release of the US May Core PCE Price Index at 8:30 AM Eastern Time.

The market consensus forecast for May Core PCE is a year-over-year increase of 3.4%, slightly up from April's 3.3%, marking the highest level since late 2023. As the Fed's primary inflation gauge, if the actual figure comes in below market expectations, it would strengthen the prevailing view that inflation is cooling, reduce the likelihood of further rate hikes from the Fed, and improve liquidity expectations. This could quickly restore sentiment towards risk assets like Bitcoin, potentially sparking a sentiment-driven recovery rally. (Coindesk)