Why Wall Street’s Favorite Bitcoin Trade Might Be Hiding in Plain Sight

Actionable Market Insights

A month ago, in our May 28 report “10 Bearish Signals Bitcoin Bulls Are Ignoring Right Now,” we noted that “excessive bullishness, as indicated by BTC skew, often serves as a contrarian signal.” On Monday, that same skew reached levels typically associated with short-term Bitcoin bottoms. However, caution is warranted, as overall market liquidity remains thin, open interest in Bitcoin continues to unwind, and stablecoin issuance remains subdued.

Is Bitcoin’s skew signaling a buy signal?

Why this report matters

Bitcoin is trading in one of its tightest ranges in years, but beneath the surface, market structure is quietly shifting. Implied volatility is diverging across platforms, crypto-native retail speculation is fading, and institutional strategies are reshaping how Bitcoin yield is generated. Some of the most actively traded Bitcoin options are pricing in very different expectations, and that gap may signal where opportunity lies. Meanwhile, futures positioning is unwinding rapidly, just as macro narratives begin to shift. With the July FOMC meeting approaching and Powell preparing to testify, traders are positioning for what could be a pivotal summer.