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

ChainCatcher news, Matrixport released today's chart stating, “In the past week, the implied volatility skew of Bitcoin options has further weakened. The short-term skew expanded 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%, suggesting a more pessimistic pricing of longer-term tail risks. From the perspective of options pricing, the market has raised the pricing for downside risks over the past week, reflected in both short-term options and contracts expiring next year. The current implied volatility has climbed to about 58%, corresponding to a higher near-term downside risk premium, as well as a more cautious medium-term outlook compared to a week ago, indicating that the market does not view this round of fluctuations as a one-time shock.”