BTC's 25 delta Skew has recovered from last week's extreme levels, but downside protection remains in high demand. The most significant improvement has occurred in 7D and 1M maturities, suggesting that some of the aggressive short-term hedging pressure has started to unwind as market volatility stabilizes. However, skew across all major tenors remains firmly negative, with puts continuing to trade at a premium to calls. This indicates that investors remain more willing to pay for downside protection than upside exposure, despite BTC maintaining its recent range. The term structure suggests that current positioning is primarily driven by near-term uncertainty rather than concerns about the broader market cycle. While risk sentiment has improved, options traders continue to favor defensive positioning, pointing to expectations of elevated volatility in the weeks ahead.(Greeks.live)