BTC 25 Delta Skew - Monthly Analysis
Bitcoin Price & Monthly 25 Delta Skew
What is BTC 25 Delta Skew Monthly?
Definition: BTC 25 delta skew monthly measures the difference in implied volatility between 25-delta Put and Call Bitcoin options with 30-day expirations, normalized by at-the-money implied volatility. This provides a medium-term view of market sentiment in Bitcoin options trading.
This chart displays the BTC-USD price alongside the monthly 25 delta skew from the Deribit Bitcoin options market. The monthly skew reveals how options traders are positioning themselves for potential price movements over the next 30 days, capturing medium-term market expectations.
How to Read Monthly Bitcoin Options 25 Delta Skew
- Positive skew values: Higher demand for 30-day Put options, indicating medium-term bearish sentiment or hedging against downside risk
- Negative skew values: Higher demand for 30-day Call options, suggesting medium-term bullish sentiment and expectations of upward price movement
- Skew approaching zero: Balanced market sentiment between bullish and bearish positioning for the next month
Monthly skew is particularly valuable for swing traders and investors looking beyond short-term price fluctuations. This timeframe often reflects institutional positioning and broader market trends rather than day-to-day volatility.
Compare BTC 25 Delta Skew Across Different Timeframes
For a more comprehensive view of market sentiment, compare the monthly 25 delta skew with other timeframes:
- Track short-term sentiment shifts with the BTC 25 delta skew weekly analysis
- Monitor quarterly positioning through the BTC 25 delta skew 3-month data
- Analyze long-term market expectations with the BTC 25 delta skew 6-month trends
Key Insight
Monthly Bitcoin 25 delta skew often serves as a leading indicator for significant market moves. When monthly skew diverges from short-term skew readings, it may indicate an impending shift in market trend or sentiment.