Analysis: Bitcoin derivatives release "panic signals", with core PCE possibly triggering a rebound

Jinse Finance reports that the Bitcoin derivatives market is showing clear signs of deteriorating risk appetite, with investors paying a significant premium for downside protection and market sentiment approaching “panic” levels. However, analysts believe that once a key catalyst appears, the market may quickly experience a sentiment-driven recovery rally. This catalyst could come from the upcoming release of the US Core PCE Price Index data at 8:30 Eastern Time. The market generally expects the US Core PCE to have risen 3.4% year-on-year in May, higher than April’s 3.3%, marking a new high since the end of 2023. If the actual data is below expectations, it will strengthen the outlook for cooling inflation, weaken the justification for further rate hikes by the Federal Reserve, and potentially improve sentiment for risk assets.