BlockBeats News, November 24th – Matrixport released today’s market analysis stating that over the past week, Bitcoin options implied volatility skew has further weakened. The short-term skew has expanded from about -3.5% last week to -10.6%, with a significant increase in short-term downside hedging demand; the long-end skew has decreased from about -0.2% to -1.9%, indicating a more pessimistic pricing of longer-term tail risks.
From an options pricing perspective, the market’s pricing of downside risk has risen over the past week, reflected in both short-term options and contracts expiring next year. The current implied volatility has risen to about 58%, reflecting a higher near-term downside risk premium and a more cautious medium-term trend expectation than a week ago, indicating that the market does not consider this round of volatility as a one-time shock.
