What is a Bitcoin skewness?

Skewness is another statistical measure used to describe the shape of a probability distribution. In the context of Bitcoin, skewness refers to the asymmetry or lack of symmetry in the distribution of returns or prices over a certain period.

If the distribution is skewed to the right (positive skewness), it means that the tail on the right side of the distribution is longer or fatter than the left side. This implies that there are more extreme positive values (e.g., large price increases) in the distribution compared to extreme negative values (e.g., large price decreases).

Conversely, if the distribution is skewed to the left (negative skewness), it means that the tail on the left side of the distribution is longer or fatter than the right side. This implies that there are more extreme negative values (e.g., large price decreases) in the distribution compared to extreme positive values (e.g., large price increases).

Analyzing the skewness of Bitcoin returns can provide insights into the distribution's shape and asymmetry, helping investors and analysts understand the risk and potential return characteristics associated with investing in Bitcoin. However, like with kurtosis, it's essential to consider other statistical measures and factors alongside skewness for a comprehensive analysis of Bitcoin's risk and return profile.