Volatility skew refers to the pattern observed in the implied volatility of options with different strike prices or expiration dates. It highlights how expectations around future price movements can vary depending on whether an asset is perceived to be bullish or bearish.In crypto markets, traders often see higher implied volatility for out-of-the-money puts compared to out-of-the-money calls. This means that investors anticipate larger price drops than increases, indicating a sentiment of caution or bearish outlook. The skew can change based on market conditions, regulatory developments, or macroeconomic events.Understanding volatility skew is important for options traders, as it can inform decisions on risk management and strategy selection. It helps traders gauge market sentiment and price expectations, allowing for more informed positioning in their trades. Overall, volatility skew serves as a valuable tool for analyzing market dynamics and making informed trading choices.