Bitcoin Derivatives Market Panic Intensifies, Core PCE May Be Key Catalyst for Market Movement

Odaily Planet Daily News Bitcoin derivative market risk appetite has noticeably weakened, with investors paying high premiums to hedge against downside risks, pushing overall market sentiment close to panic territory. Institutional analysis points out that the key catalyst for a short-term market recovery will be the release of the US May Core PCE Price Index at 8:30 AM Eastern Time.

Market consensus forecasts the May Core PCE year-over-year increase to be 3.4%, a slight uptick from April's 3.3%, marking a new high since late 2023. As the Fed's key monitored inflation indicator, if the actual data falls below market expectations, it would reinforce the market view of cooling inflation and weaken the possibility of future Fed rate hikes. An improvement in liquidity expectations could rapidly restore sentiment for risk assets like Bitcoin, potentially triggering a sentiment-driven recovery rally. (Coindesk)