Bitcoin and Ethereum Monthly Options Expiry, PCE Inflation Appears, Support for Price Impact
The crypto market has made a slight recovery but prices remain under pressure due to market participants Support for inflation data And crypto options expiration Friday, May 31. While altcoins are weakening against the Bitcoin price, it is mainly facing the heat as Bitcoin dominance rises back above 53%.
Markets Focused on Fed’s Preferred PCE Inflation
Investors are now focusing on PCE and core PCE inflation numbers, which are the US Federal Reserve’s preferred indicator for measuring inflation. US Bureau of Economic Analysis It will publish key inflation data as it could determine the direction of the market for weeks.
Wall Street expects PCE inflation to be lower than expected. Market predictions annual PCE inflation It will be at 2.7%, the same level as last month. Meanwhile, PCE’s monthly inflation is expected to be 0.3%, similar to the previous month.
On the other hand, annual and monthly core PCE inflation According to market estimates, it will remain at 2.8% and 0.3%. While stagnant real PCE inflation figures will be positive for the markets and indicate that inflation will slow, Wall Street banks expect inflation to pivot for the market to recover.
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Bitcoin and Ethereum Expire 8.2 Billion Options
On 69 thousand Bitcoin options worth $4.7 billion Par value assets will expire on Deribit on May 31. The put-call ratio is 0.61, indicating a recent increase in open call positions as the monthly maturity approaches. The maximum pain point is $66,000, which is below the current price. Therefore, the market can expect a large swing along with a pullback in price on the maturity day.
Besides, 909k Ethereum option notional value of $3.4 billion It is set to expire at a put-call ratio of 0.60. The maximum pain point is $3,300. ETH price is currently trading above its maximum pain point, giving investors more room to book profits.
Adam from Greekslive explained that the volatility caused by the price increase quickly returned. BTC’s short option IV is down 40%, while ETH’s decline is slightly smaller and relatively stable around 60%. The market’s attention is on Ethereum ETFs as any announcement could cause upward movements in the markets.
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BTC Price Eyes New ATH
US dollar index (DXY) has fallen near 104.70 after consecutive rises in the last few days. US GDP growth was revised down to 1.3% in the first quarter, in line with expectations, mainly due to slowing consumer spending.
Meanwhile, US 10-year Treasury yield It fell to 4.55%, easing from the four-week high of 4.61% touched yesterday as markets continued to evaluate the latest data for clues about the Fed’s policy outlook. Specifically, the President of the Minneapolis Federal Reserve Neel Kashkari He stated that the current policy stance is restrictive, but emphasized that the authorities did not completely rule out additional interest rate increases.
Any decline in DXY and treasury yields could bring a rebound in BTC price as inflationary pressures ease. The reported CPI has provided much-needed bullish momentum for Bitcoin and the overall market, and traders are expecting similar results based on PCE data.
BTC price has increased by 2% in the last 24 hours and the price is currently trading around $68,500. The 24-hour low and high are $67,118 and $69,500 respectively. Additionally, the 10% increase in transaction volume in the last 24 hours shows that investors are interested.
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Varinder has 10 years of experience in the Fintech industry and has been dedicated to blockchain, crypto and Web3 development for over 5 years. A tech enthusiast and analytical thinker, he has shared his knowledge of disruptive technologies in more than 5,000 news stories, articles, and articles. Varinder believes in the great potential of future innovative technologies with parofix Media. He currently covers the latest updates and developments in the crypto industry.
The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. Neither the author nor the publication accepts any liability for your personal financial loss.
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