BTC 25 Delta Skew - 3-Month Analysis
Bitcoin Price & 3-Month 25 Delta Skew
What is BTC 25 Delta Skew 3-Month?
Definition: BTC 25 delta skew 3-month measures the difference in implied volatility between 25-delta Put and Call Bitcoin options with quarterly (90-day) expirations, normalized by at-the-money implied volatility. This provides a medium to long-term view of market sentiment in Bitcoin options trading.
This chart displays the BTC-USD price alongside the 3-month 25 delta skew from the Deribit Bitcoin options market. The quarterly skew reveals how options traders are positioning themselves for potential price movements over the next three months, capturing more significant market cycles and trends.
How to Read 3-Month Bitcoin Options 25 Delta Skew
- Positive skew values: Higher demand for quarterly Put options, indicating medium-term bearish sentiment or protection against anticipated market downturns
- Negative skew values: Higher demand for quarterly Call options, suggesting confidence in sustained bullish price action over the coming months
- Skew approaching zero: Balanced market outlook for the quarterly timeframe, with neither bullish nor bearish bias dominant
The 3-month skew is particularly relevant for identifying broader market cycles and institutional positioning. This timeframe often corresponds with quarterly strategy adjustments by major market participants and captures seasonal market patterns.
Compare BTC 25 Delta Skew Across Different Timeframes
For a complete picture of market sentiment across various time horizons, compare the 3-month 25 delta skew with other timeframes:
- Track immediate market positioning with the BTC 25 delta skew weekly analysis
- Monitor medium-term sentiment through the BTC 25 delta skew monthly data
- Analyze long-term market expectations with the BTC 25 delta skew 6-month trends
Key Insight
The 3-month Bitcoin 25 delta skew often reflects institutional hedging strategies and macro-economic positioning. Extreme readings in this timeframe can signal significant market inflection points that may not be apparent in shorter-term metrics.