Explain the Concept of “Volatility Skew” in Crypto Options

Volatility skew is the pattern where options with different strike prices but the same expiration date have different implied volatilities (IV). In crypto, as in traditional finance, out-of-the-money put options (betting on a price drop) often have a higher IV than at-the-money or out-of-the-money call options.

This "skew" reflects a greater market fear of a sharp, sudden price crash (tail risk) than of a rapid price surge.