Bitcoin Puts Surge as Traders Brace for Core PCE Inflation Data

BTC options skew hits 25-point put premium ahead of May core PCE print, signaling downside bets amid Fed rate cut hopes. Bitcoin’s one-week options skew shows a 25-point premium for puts over calls, reflecting heightened demand for downside protection. The shift mirrors ea

BTC options skew hits 25-point put premium ahead of May core PCE print, signaling downside bets amid Fed rate cut hopes.

Bitcoin’s one-week options skew shows a 25-point premium for puts over calls, reflecting heightened demand for downside protection. The shift mirrors early February’s peak put pricing, when BTC found support above $60,000 and held for months.

May’s core PCE, the Fed’s preferred inflation gauge, is expected to rise 3.4% year-on-year, up from April’s 3.3%. A softer print could ease pressure for further rate hikes, fueling risk assets. Headline inflation is forecast at 4.1%, driven by energy costs, though recent WTI crude drops to $70 may limit upside.

BTC rebounded to $61,500 after hitting a 20-month low near $59,000 Wednesday. Traders view the data as potentially stale given oil’s decline, but a miss could trigger a sharp sentiment shift.

Leave a Reply

Your email address will not be published. Required fields are marked *