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

Odaily Planet Daily News: Matrixport released today's chart indicating that Bitcoin's options skew (the difference in implied volatility between put and call options) has dropped to nearly -10%. This means the implied volatility of call options is 10% higher than that of put options, suggesting that traders are currently more focused on chasing upside potential rather than hedging downside risk.
Based on our experience, when options skew reaches similar levels, it usually indicates that market sentiment is in an extremely optimistic state. This extreme sentiment is often a contrarian signal, possibly indicating that the short-term market may soon stagnate or face a pullback. As mentioned in our report yesterday, although we have maintained a bullish stance since mid-April, at this stage, it might be an appropriate time to gradually manage risk exposure. The essence of trading lies in balancing risk and reward. In a market environment where sentiment is generally bullish, we believe that being patient and waiting for more attractive entry points might be a more prudent choice.