The post Relative-Value Strategies Beat Directional Bets as Crypto Volatility Bites appeared on BitcoinEthereumNews.com. Home » Crypto News Crypto funds shiftedThe post Relative-Value Strategies Beat Directional Bets as Crypto Volatility Bites appeared on BitcoinEthereumNews.com. Home » Crypto News Crypto funds shifted

Relative-Value Strategies Beat Directional Bets as Crypto Volatility Bites

For feedback or concerns regarding this content, please contact us at crypto.news@mexc.com

Home » Crypto News


Crypto funds shifted to market-neutral trades as volatility punished directional bets and triggered a fourth straight month of losses.

‘;
}
function loadTrinityPlayer(targetWrapper, theme,extras=””) {
cleanupPlayer(targetWrapper); // Always clean first ✅
targetWrapper.classList.add(‘played’);
// Create script
const scriptEl = document.createElement(“script”);
scriptEl.setAttribute(“fetchpriority”, “high”);
scriptEl.setAttribute(“charset”, “UTF-8”);
const scriptURL = new URL(`https://trinitymedia.ai/player/trinity/2900019254/?themeAppearance=${theme}${extras}`);
scriptURL.searchParams.set(“pageURL”, window.location.href);
scriptEl.src = scriptURL.toString();
// Insert player
const placeholder = targetWrapper.querySelector(“.add-before-this”);
placeholder.parentNode.insertBefore(scriptEl, placeholder.nextSibling);
}
function getTheme() {
return document.body.classList.contains(“dark”) ? “dark” : “light”;
}
// Initial Load for Desktop
if (window.innerWidth > 768) {
const desktopBtn = document.getElementById(“desktopPlayBtn”);
if (desktopBtn) {
desktopBtn.addEventListener(“click”, function () {
const desktopWrapper = document.querySelector(“.desktop-player-wrapper.trinity-player-iframe-wrapper”);
if (desktopWrapper) loadTrinityPlayer(desktopWrapper, getTheme(),’&autoplay=1′);
});
}
}
// Mobile Button Click
const mobileBtn = document.getElementById(“mobilePlayBtn”);
if (mobileBtn) {
mobileBtn.addEventListener(“click”, function () {
const mobileWrapper = document.querySelector(“.mobile-player-wrapper.trinity-player-iframe-wrapper”);
if (mobileWrapper) loadTrinityPlayer(mobileWrapper, getTheme(),’&autoplay=1′);
});
}
function reInitButton(container,html){
container.innerHTML = ” + html;
}
// Theme switcher
const destroyButton = document.getElementById(“checkbox”);
if (destroyButton) {
destroyButton.addEventListener(“click”, () => {
setTimeout(() => {
const theme = getTheme();
if (window.innerWidth > 768) {
const desktopWrapper = document.querySelector(“.desktop-player-wrapper.trinity-player-iframe-wrapper”);
if(desktopWrapper.classList.contains(‘played’)){
loadTrinityPlayer(desktopWrapper, theme,’&autoplay=1′);
}else{
reInitButton(desktopWrapper,’Listen‘)
const desktopBtn = document.getElementById(“desktopPlayBtn”);
if (desktopBtn) {
desktopBtn.addEventListener(“click”, function () {
const desktopWrapper = document.querySelector(“.desktop-player-wrapper.trinity-player-iframe-wrapper”);
if (desktopWrapper) loadTrinityPlayer(desktopWrapper,theme,’&autoplay=1’);
});
}
}
} else {
const mobileWrapper = document.querySelector(“.mobile-player-wrapper.trinity-player-iframe-wrapper”);
if(mobileWrapper.classList.contains(‘played’)){
loadTrinityPlayer(mobileWrapper, theme,’&autoplay=1′);
}else{
const mobileBtn = document.getElementById(“mobilePlayBtn”);
if (mobileBtn) {
mobileBtn.addEventListener(“click”, function () {
const mobileWrapper = document.querySelector(“.mobile-player-wrapper.trinity-player-iframe-wrapper”);
if (mobileWrapper) loadTrinityPlayer(mobileWrapper,theme,’&autoplay=1′);
});
}
}
}
}, 100);
});
}
})();


Summarize with AI


Summarize with AI

Crypto funds opened 2026 with losses and defensive positioning, according to a February 18 survey by Presto Research and Otos Data.

The report shows investors shifting toward relative-value and market-neutral trades as macro uncertainty and price swings weigh on directional bets.

Market-Neutral Funds Outperform as Directional Strategies Sink

According to Presto’s survey, all liquid crypto hedge funds dipped by an average of 1.49% last month. The losses extended a difficult stretch for active managers, marking the fourth consecutive month of negative equally weighted performance across both fundamental and quantitative categories, a sequence not seen since late 2018 and early 2019.

The dispersion within the numbers tells a clearer story, with fundamental funds dropping 3.01% in January, while quantitative funds fell 3.51%. On the other hand, Presto revealed that market-neutral funds, which aim to profit from price differences rather than market direction, gained about 1.6%. Over six months, those same neutral strategies are up nearly 5% while fundamental funds are down more than 24%.

During that same period, Bitcoin (BTC) has fallen approximately 31%, Ethereum (ETH) 23%, and Solana (SOL) 47%.

Analysis by other market watchers supports the fragile tone, with data from Alphractal showing that Bitcoin was trading in a stress zone where weaker holders tend to sell while long-term investors accumulate. The firm’s founder, Joao Wedson, said long-term holder profit levels are still positive, a sign the market may not yet be at a final turning point.

Positioning Data Points to Defensive Posture, Not Panic

The Presto survey’s flow analysis shows a clear behavioral arc through January. The month opened with constructive positioning and call buying, but as rallies failed, traders rotated into tactical fade structures. By the third week, downside hedging became dominant, as ETF flows fluctuated, with periods of inflow offset by miner distribution and whale selling. Meanwhile, corporate accumulation remained present but insufficient to offset broader risk reduction.

You may also like:

Importantly, the report noted that positioning into the month-end was not outright capitulative. The analysts stated that while protection was in place, the leverage looked more orderly compared to the chaotic reset event in October 2025.

The absence of broad panic suggests that stress is building in pockets rather than being expressed as systemic liquidation. This distinction matters as the market assesses whether January represents continuation or exhaustion.

The researchers advised that until policy clarity improves or a structural crypto-specific catalyst emerges, rallies are likely to fade, volatility will stay reactive to headline risk, and adaptability rather than conviction will determine survival in the first quarter of 2026.

Whether January marked a continuation of the bear trend or the exhaustion phase of selling pressure remains an open question. However, at present, the data indicate that strategies that prioritize relative value over directional conviction are successfully navigating the current challenges.

SPECIAL OFFER (Exclusive)

SECRET PARTNERSHIP BONUS for CryptoPotato readers: Use this link to register and unlock $1,500 in exclusive BingX Exchange rewards (limited time offer).

Source: https://cryptopotato.com/relative-value-strategies-beat-directional-bets-as-crypto-volatility-bites/

Market Opportunity
Ucan fix life in1day Logo
Ucan fix life in1day Price(1)
$0.0004562
$0.0004562$0.0004562
+1.17%
USD
Ucan fix life in1day (1) Live Price Chart
Disclaimer: The articles reposted on this site are sourced from public platforms and are provided for informational purposes only. They do not necessarily reflect the views of MEXC. All rights remain with the original authors. If you believe any content infringes on third-party rights, please contact crypto.news@mexc.com for removal. MEXC makes no guarantees regarding the accuracy, completeness, or timeliness of the content and is not responsible for any actions taken based on the information provided. The content does not constitute financial, legal, or other professional advice, nor should it be considered a recommendation or endorsement by MEXC.

You May Also Like

How to earn from cloud mining: IeByte’s upgraded auto-cloud mining platform unlocks genuine passive earnings

How to earn from cloud mining: IeByte’s upgraded auto-cloud mining platform unlocks genuine passive earnings

The post How to earn from cloud mining: IeByte’s upgraded auto-cloud mining platform unlocks genuine passive earnings appeared on BitcoinEthereumNews.com. contributor Posted: September 17, 2025 As digital assets continue to reshape global finance, cloud mining has become one of the most effective ways for investors to generate stable passive income. Addressing the growing demand for simplicity, security, and profitability, IeByte has officially upgraded its fully automated cloud mining platform, empowering both beginners and experienced investors to earn Bitcoin, Dogecoin, and other mainstream cryptocurrencies without the need for hardware or technical expertise. Why cloud mining in 2025? Traditional crypto mining requires expensive hardware, high electricity costs, and constant maintenance. In 2025, with blockchain networks becoming more competitive, these barriers have grown even higher. Cloud mining solves this by allowing users to lease professional mining power remotely, eliminating the upfront costs and complexity. IeByte stands at the forefront of this transformation, offering investors a transparent and seamless path to daily earnings. IeByte’s upgraded auto-cloud mining platform With its latest upgrade, IeByte introduces: Full Automation: Mining contracts can be activated in just one click, with all processes handled by IeByte’s servers. Enhanced Security: Bank-grade encryption, cold wallets, and real-time monitoring protect every transaction. Scalable Options: From starter packages to high-level investment contracts, investors can choose the plan that matches their goals. Global Reach: Already trusted by users in over 100 countries. Mining contracts for 2025 IeByte offers a wide range of contracts tailored for every investor level. From entry-level plans with daily returns to premium high-yield packages, the platform ensures maximum accessibility. Contract Type Duration Price Daily Reward Total Earnings (Principal + Profit) Starter Contract 1 Day $200 $6 $200 + $6 + $10 bonus Bronze Basic Contract 2 Days $500 $13.5 $500 + $27 Bronze Basic Contract 3 Days $1,200 $36 $1,200 + $108 Silver Advanced Contract 1 Day $5,000 $175 $5,000 + $175 Silver Advanced Contract 2 Days $8,000 $320 $8,000 + $640 Silver…
Share
BitcoinEthereumNews2025/09/17 23:48
ArtGis Finance Partners with MetaXR to Expand its DeFi Offerings in the Metaverse

ArtGis Finance Partners with MetaXR to Expand its DeFi Offerings in the Metaverse

By using this collaboration, ArtGis utilizes MetaXR’s infrastructure to widen access to its assets and enable its customers to interact with the metaverse.
Share
Blockchainreporter2025/09/18 00:07
UK Energy Shock Threatens Crucial Bank of England Rate Cuts – Deutsche Bank Warns

UK Energy Shock Threatens Crucial Bank of England Rate Cuts – Deutsche Bank Warns

BitcoinWorld UK Energy Shock Threatens Crucial Bank of England Rate Cuts – Deutsche Bank Warns LONDON, March 2025 – A sudden resurgence in UK energy price volatility
Share
bitcoinworld2026/03/04 22:30