Bitcoin Options Market Turns Bullish as Put-Call Skew Flips 7%

On July 14, 2025, Bybit, the world’s second-largest cryptocurrency exchange by trading volume, released its latest crypto derivatives analytics report in collaboration with Block Scholes. The report highlighted a significant shift in the Bitcoin (BTC) options market following a price surge on July 9, 2025. The put-call skew, a measure of the difference in implied volatility between put and call options, flipped from a 2% premium favoring downside protection to a 5% premium on upside calls. This reversal indicates a change in market sentiment, with traders becoming more bullish on Bitcoin's price outlook.

The shift in the put-call skew comes after Bitcoin's price reached a new all-time high, surpassing $115,000. This price surge has led to a significant increase in bullish sentiment among traders. The change in market sentiment is also reflected in the options market, with traders now more willing to pay a premium for call options, which give them the right to buy Bitcoin at a specific price in the future. The flip in the put-call skew is a significant development in the Bitcoin options market, as it indicates a change in trader sentiment from bearish to bullish. This shift in sentiment is likely to have implications for the broader cryptocurrency market, as Bitcoin is the largest and most influential cryptocurrency.

The report also noted that perpetual trading volume on Bybit hit a monthly high at $11.1 billion by the end of the week, following BTC’s breakthrough to $115,000 on July 9. Overall funding rates for assets, including BTC, turned consistently positive, with BTC suffering only 8 hours of negative funding rates a day before its all-time high. This positive movement was observed across various cryptocurrencies, with ETH and XRP each surging over 6% compared to BTC’s relatively modest gains to its new all-time high of $112,000—just $29 above the May peak. While BTC options maintained rangebound implied volatility between 26-35%, the altcoin rally highlighted shifting market dynamics. However, SOL lagged with only a 2% weekly gain despite strong ecosystem fundamentals, including record-breaking Q2 revenue of $271 million that outpaced all other Layer 1 and Layer 2 networks.

The flip in the put-call skew is a clear indication that traders are now more optimistic about Bitcoin's future price movements. This shift in sentiment is likely to have implications for the broader cryptocurrency market, as well as for the options market. Traders should keep an eye on the put-call skew as a potential indicator of future price movements in the Bitcoin market. The report underscores the dynamic nature of the cryptocurrency market and the importance of monitoring key indicators such as the put-call skew to gauge market sentiment and potential price movements.