Matrixport: Traders are currently more focused on chasing upside rather than hedging downside risk

Odaily Planet Daily News Matrixport released today's chart saying that Bitcoin's option skewness (the difference between the implied volatility of put options and call options) has fallen to nearly -10%. This means that the implied volatility of call options is 10% higher than that of put options, suggesting that traders are currently more focused on chasing upside rather than hedging downside risks. In our experience, when option skewness reaches similar levels, it usually indicates that market sentiment is extremely optimistic. This extreme sentiment is often a reverse signal, which may indicate that the short-term market is about to stagnate or face a correction. As we mentioned in yesterday's report, although we have continued to maintain a bullish judgment since mid-April, at this stage, it may be the right time to gradually control risk exposure. The essence of trading is to balance risk and reward. In the context of generally bullish market sentiment, we believe that being patient and waiting for more attractive entry points may be a more stable choice.