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Matrixport: Bitcoin implied volatility and skew indicate rising market risk aversion

2025-11-24 11:41:44

Matrixport released a chart today stating, "In the past week, the implied volatility skew of Bitcoin options has further weakened. The short-term skew widened from about -3.5% last week to -10.6%, indicating a significant increase in short-term downside hedging demand; the long-end skew decreased from about -0.2% to -1.9%, reflecting a more pessimistic pricing of longer-term tail risks. From the perspective of option pricing, the market's pricing of downside risks has increased over the past week, evident in both short-term options and contracts expiring next year. The current implied volatility has risen to about 58%, corresponding to a higher near-term downside risk premium and a more cautious medium-term outlook compared to a week ago, indicating that the market does not view this round of volatility as a one-off shock."

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