Crypto derivatives markets indicate traders are increasingly hedging against deeper losses, even as select tokens outperform in an otherwise soft market.
Decred (DCR) continued its strong advance despite weakness across major digital assets led by Bitcoin. The governance-focused token jumped 16% in the past 24 hours to $34.58, its highest level since November. Over the last four weeks, DCR has rallied more than 80%, making it the top-performing asset among the 100 largest cryptocurrencies following a Feb. 8 update to its treasury rules.
Bitcoin, meanwhile, hovered near $67,000 after failing to sustain Wednesday’s push toward $70,000. The cryptocurrency is down roughly 2% on a 24-hour basis, with Ethereum, XRP, and Solana posting similar declines. The broader CoinDesk 20 Index also remains under pressure.
Investors continue to prioritize downside protection. According to crypto derivatives exchange Deribit, ETF investors and corporate treasuries have been accumulating bitcoin put options with a $60,000 strike price expiring in six to 12 months, signaling expectations of potential volatility ahead.
While analysts note that institutional flows are gradually stabilizing, they caution that conviction remains limited. Vikram Subburaj, CEO of Indian crypto exchange Giottus, suggested a measured approach. Long-term investors, he said, may consider phased accumulation near support levels rather than committing large sums at resistance zones.
Derivatives Market Trends
Futures and options positioning underscores the cautious tone:
- Total crypto futures open interest has retreated to around $93.5 billion, back to multi-month lows, highlighting fading momentum after bitcoin’s midweek rebound.
- Bitcoin and ether have both recorded capital outflows in futures markets, with open interest declining faster than spot prices.
- The aggregate long-short ratio continues to tilt toward short positions, reflecting prevailing bearish sentiment.
- Open interest in Tether Gold (XAUT) dropped another 11%, extending its weekly slide and indicating reduced appetite for gold-backed digital tokens.
- Funding rates for perpetual futures tied to BTC and ETH have turned negative again, signaling renewed dominance of short sellers.
- Open interest in bitcoin futures listed by CME Group has fallen to its lowest level this year, suggesting declining participation from traditional market players.
- On Deribit, one-month bitcoin put options trade at a roughly 7% premium to calls, a sign that traders remain wary of further downside. Ether options display a similar skew.
- Bitcoin put spreads represented about 75% of block trading activity over the past 24 hours. In ether, traders leaned into both put spreads and straddles, indicating bearish positioning alongside expectations for increased volatility.
Token Developments
In separate news, the DFINITY Foundation unveiled a proposal to burn 20% of revenue generated by its cloud engine, adding a deflationary component to Internet Computer (ICP) tied directly to network usage. The remaining 80% would be distributed to node operators, replacing fixed emissions with performance-based incentives.
ICP gained about 6% over the past 24 hours, climbing from $2.41 to $2.56, though still below its recent $2.70 peak. The token’s move coincided with upbeat earnings from Nvidia, which lifted sentiment around artificial intelligence-related assets. CEO Jensen Huang reiterated that AI development continues to accelerate.
Often positioned as a decentralized alternative to traditional cloud infrastructure for AI, ICP joined other AI-linked tokens such as Render and Bittensor in posting gains as investors rotated back into the sector.
