Crypto market braces for options expiry & inflation data impact

Two events are about to happen on May 31, 2024. First, the monthly options for Bitcoin and Ethereum are about to expire. Second, the Federal Reserve is expected to post inflation data. Both could potentially impact the sentiments in the crypto market. Inflation data could be lower than expected, and monthly options expiration could contribute to volatility movements.

Annual PCE inflation could hover around 2.7% with a month-over-month figure of 0.3%. Annual and monthly core PCE inflation figures are expected to be 2.8% and 0.3%, respectively.

More than 69,000 BTC tokens worth approximately $4.7 billion will expire on May 31, 2024, at Derbit. This fuels a rise in open interest with a put-call ratio of 0.61. There could be a pullback from the current trading value. Similarly, more than 909,000 ETH tokens are expiring. They are worth approximately $3.4 billion and have a put-call ratio of 0.60. Traders are expected to register profit as the token exchanges hands above the max point of $3,300.

Volatility has fallen a bit as analysts say the market is reaching maturity. It is about how much it can sustain that maturity. BTC and ETH are back to a lower value – not necessarily away from the following resistance levels of $70,000 and $4,000, applicable in the same order.

Bitcoin is eyeing to bank a new ATH by surpassing $74,000. The upswing is on the table, with the potential to be listed at $84,000 in the next 30 days. Bitcoin currently sports a volatility of 5.37% with a 14-day RSI of 55.88. Sentiments are mainly neutral and likely bullish once the Federal Reserve acknowledges the inflation data.

The crypto market could gain traction based on the global money supply and liquidity. Investors’ risk appetites will also play a huge role.

These factors are mutually prevalent within the Ethereum ecosystem. Except, they are driven by speculation around the approval of Spot Ether ETF. The token is riding a volatility of 11.04%, with the next 30 days’ predicted value of $3,831.76, a surge of 2.12%. The 14-day RSI is 64.81, with overall neutral sentiments.

The 10-year US Treasury yield has fallen to 4.55% from the high of 4.61%. The chances of a rate cut are out of the frame at the moment. What’s more, the authorities have still not ruled out the possibility of additional rate hikes. Needless to say, traders and investors are fearful, which is likely to be solved once they have the recent data on hand. Records show that the inflation was 3.36% as of April 30, 2024. It was earlier above 8% and has been controlled diligently.

Roxanne Williams

Roxanne Williams has recently joined as a market reporter for CryptoNewsZ - the 24/7 crypto news site, where she produces recent stories, technical analysis and price updates on world's leading cryptocurrencies.

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Bitcoin (BTC) $ 61,898.58
Ethereum (ETH) $ 3,403.54
Tether (USDT) $ 1.00
BNB (BNB) $ 577.64
Solana (SOL) $ 137.49
XRP (XRP) $ 0.476834
Dogecoin (DOGE) $ 0.126496
Cardano (ADA) $ 0.393151