The evening PCE release time is approaching, and economic data continues to influence market expectations.

The latest trends in the US economic fundamentals are profoundly impacting the cryptocurrency market and stock indices. Last weekend’s GDP quarter-over-quarter annualized rate and unemployment rate data both exceeded expectations, signaling that the US economy remains resilient. However, this also weakened market expectations for the Federal Reserve to cut interest rates. Despite this, the S&P 500 index remains strong and has reached new highs, while the cryptocurrency market shows a polarized volatility—BTC remains stable above $112,000, and ETH fluctuates around $4,500.

Continuous Economic Data Releases Hit Rate Cut Expectations

This week’s economic calendar is equally noteworthy. The US Commodity Futures Trading Commission (CFTC) has announced plans to open the use of offshore cryptocurrency exchanges to US investors, a policy move that brings tangible benefits to the crypto industry. More importantly, tonight the US will release the final GDP data and the highly anticipated core PCE data, with the timing of the PCE release being crucial as it is a key indicator for the Federal Reserve’s monetary policy assessment. The core PCE, which measures the price level of personal consumption expenditures, directly reflects inflation conditions. The market has faced adverse economic data shocks for two consecutive trading days. Industry analysts believe that if the data released at the PCE announcement exceeds expectations, it will further weaken rate cut expectations, potentially leading to larger market adjustments.

Oracle Sector Benefits, Solana Ecosystem Welcomes New Opportunities

The most impressive performance in the crypto market this week was the surge in the oracle sector. The US Department of Commerce decided to link economic data on the blockchain via Solana’s Pyth Network oracle, marking a significant breakthrough in blockchain applications for economic data. This move caused PYTH tokens to surge nearly 52% in a single day. Similarly, Chainlink (LINK), also in the oracle space, benefited and rose about 3%, highlighting market optimism about oracle applications. As a result, the Solana ecosystem became a beneficiary of this rally, with multiple projects within the ecosystem gaining increased market attention.

Policy Signals Favorable, Cryptocurrency Market Outlook Bright

Positive signals from policy are gradually accumulating. The CFTC’s move to allow Americans to use offshore exchanges indicates a shift in regulatory attitudes toward the crypto industry, which could bring increased liquidity opportunities to the global crypto market. However, the market should closely monitor the short-term impact of the PCE release—if the data falls short of expectations, the timetable for rate cuts could be delayed, exerting downward pressure on risk asset valuations. Investors should prepare psychologically before the economic data is released to brace for potential market volatility.