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

Odaily Planet Daily News: Matrixport released today's chart stating that the option skewness of Bitcoin (i.e. the difference between the implied volatility of put and call options) has fallen to nearly -10%. This means that the implied volatility of call options is 10% higher than that of put options, indicating that traders are currently more focused on chasing upward space rather than hedging against downward risk. Based on our experience, when the skewness of options reaches a similar level, it usually indicates that market sentiment has reached an extremely optimistic state. This extreme emotion is often a reverse signal, which may indicate that the short-term market is about to stagnate or face a correction. As mentioned in our report yesterday, although we have maintained a bullish judgment since mid April, at this stage, it may be an appropriate time to gradually control our risk exposure. The essence of trading lies in balancing risk and return. Against the backdrop of generally bullish market sentiment, we believe that maintaining patience and waiting for more attractive entry points may be a more prudent choice.