Foresight News reports that Matrixport released a chart analysis stating, "Bitcoin's option skew (the difference between put and call option implied volatility) has dropped to nearly 10%. This means that the implied volatility of call options is 10% higher than put options, suggesting that traders are currently more focused on chasing upside potential rather than hedging downside risks.
Based on our experience, when the option skew reaches similar levels, it usually indicates that market sentiment is in an extremely optimistic state. Such extreme sentiment is often a contrarian signal that may suggest an imminent market stagnation or correction. As mentioned in our report yesterday, although we have maintained a bullish view since mid-April, this might be an appropriate time to gradually control risk exposure. The essence of trading lies in balancing risk and reward. In the context of generally bullish market sentiment, we believe that maintaining patience and waiting for more attractive entry points may be a more prudent choice."
