BTC Options Just Flashed the 2022 Crypto Winter Signal šØš
The options market is currently pricing in maximum fear, a signal we haven't seen since the deepest parts of the bear market. The 6-month 25D Skew for $BTC has spiked to its highest level this cycle. This is a critical indicator: it means traders are paying an extreme premium for downside protection (Puts) over chasing potential upside gains (Calls).
This unprecedented cost differential for puts suggests market participants are profoundly defensive, either hedging large spot positions or actively betting on a significant correction. The last time this structural fear dominated the options chain was throughout the 2022 crypto winter. While extreme pessimism can sometimes mark capitulation lows, the current positioning confirms that confidence in near-term upside is critically low. š
Not financial advice. Trade responsibly.
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