BTC's skew recovers
Bitcoin's seven day and 30-day skews have clawed back to -6% from the -25% panic lows in early February, when BTC cratered toward $25,000.
The shift signals traders dialing back on protective puts – less crash hedging, more steady nerves.
"Despite earlier fears of a catastrophic crash of the crypto markets, derivatives markets suggest those concerns may have been overstated. BTC skew – a key measure of sentiment in options markets – has rebounded sharply from around -25% (normalized by at-the-money implied volatility) to roughly +10% today, signaling a significant shift away from aggressive downside hedging," Forster said.
Skews based on leading centralized options exchange Deribit paint a similar picture.
According to Forster, put shorting (writing) has surged across venues in recent days, a sign that traders are willing to take on downside risk in exchange for premium, which is consistent with expectations of stabilizing or rising prices.
At press time, bitcoin changed hands near $70,000, up nearly 5% for the month, according to CoinDesk data.
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Bitcoin's seven day and 30-day skews have clawed back to -6% from the -25% panic lows in early February, when BTC cratered toward $25,000.
The shift signals traders dialing back on protective puts – less crash hedging, more steady nerves.
"Despite earlier fears of a catastrophic crash of the crypto markets, derivatives markets suggest those concerns may have been overstated. BTC skew – a key measure of sentiment in options markets – has rebounded sharply from around -25% (normalized by at-the-money implied volatility) to roughly +10% today, signaling a significant shift away from aggressive downside hedging," Forster said.
Skews based on leading centralized options exchange Deribit paint a similar picture.
According to Forster, put shorting (writing) has surged across venues in recent days, a sign that traders are willing to take on downside risk in exchange for premium, which is consistent with expectations of stabilizing or rising prices.
At press time, bitcoin changed hands near $70,000, up nearly 5% for the month, according to CoinDesk data.
#IranianPresident'sSonSaysNewSupremeLeaderSafe #UseAIforCryptoTrading $BTC $ETH $BNB
