Bitcoin’s 25 Delta Skew Signals Shifting Market Sentiment

Recent data from Glassnode highlights a notable shift in Bitcoin’s market sentiment, as reflected in the 25 Delta Skew metric.

The analysis reveals that the one-week skew has cooled from over 10% to 2.96%, suggesting a decline in short-term panic among traders. However, the longer-term outlook remains cautious, with 3-month and 6-month skews registering negative values of -2.6% and -4.3%, respectively. This put-heavy volume profile indicates that while immediate fears have subsided, investors are still hedging against potential downside risks.

This trend aligns with broader market dynamics observed in 2024, where a study from the Journal of Risk and Financial Management noted that declining delta skew often follows volatility spikes, signaling a stabilization phase. The persistent negative skew, however, may reflect structural uncertainties, possibly tied to institutional inflows, a point reinforced by Glassnode’s 2025 Q2 report with Coinbase. Such patterns suggest that while the market is not bracing for a major crash, it remains wary of range-bound trading into late summer.

Historically, similar skew behavior in June 2021 preceded Bitcoin’s consolidation phase, only to be followed by a risk-on rally post-halving. A sudden flip to positive skew could again catalyze a bullish surge, catching bears off-guard as put hedges unwind. With today’s date marking June 26, 2025, traders are advised to keep a close eye on this metric, as it could herald a pivotal shift.

In conclusion, Bitcoin’s current 25 Delta Skew paints a picture of cautious optimism. As the market navigates this delicate balance, staying attuned to skew trends will be key to anticipating the next move in this ever-evolving crypto landscape.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. CoinCryptoNewz is not responsible for any losses incurred. Readers should do their own research before making financial decisions.

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