Crypto funds opened 2026 with losses and defensive positioning, in accordance with a February 18 survey by Presto Analysis and Otos Information.
The report exhibits traders shifting towards relative-value and market-neutral trades as macro uncertainty and worth swings weigh on directional bets.
Market-Impartial Funds Outperform as Directional Methods Sink
Based on Presto’s survey, all liquid crypto hedge funds dipped by a mean of 1.49% final month. The losses prolonged a troublesome stretch for lively managers, marking the fourth consecutive month of adverse equally weighted efficiency throughout each basic and quantitative classes, a sequence not seen since late 2018 and early 2019.
The dispersion inside the numbers tells a clearer story, with basic funds dropping 3.01% in January, whereas quantitative funds fell 3.51%. Alternatively, Presto revealed that market-neutral funds, which purpose to revenue from worth variations quite than market path, gained about 1.6%. Over six months, those self same impartial methods are up practically 5% whereas basic funds are down greater than 24%.
Throughout that very same interval, Bitcoin (BTC) has fallen roughly 31%, Ethereum (ETH) 23%, and Solana (SOL) 47%.
Evaluation by different market watchers helps the delicate tone, with knowledge from Alphractal displaying that Bitcoin was buying and selling in a stress zone the place weaker holders are inclined to promote whereas long-term traders accumulate. The agency’s founder, Joao Wedson, stated long-term holder revenue ranges are nonetheless constructive, an indication the market could not but be at a closing turning level.
Positioning Information Factors to Defensive Posture, Not Panic
The Presto survey’s circulate evaluation exhibits a transparent behavioral arc via January. The month opened with constructive positioning and name shopping for, however as rallies failed, merchants rotated into tactical fade constructions. By the third week, draw back hedging grew to become dominant, as ETF flows fluctuated, with durations of influx offset by miner distribution and whale promoting. In the meantime, company accumulation remained current however inadequate to offset broader danger discount.
Importantly, the report famous that positioning into the month-end was not outright capitulative. The analysts said that whereas safety was in place, the leverage regarded extra orderly in comparison with the chaotic reset occasion in October 2025.
The absence of broad panic means that stress is constructing in pockets quite than being expressed as systemic liquidation. This distinction issues because the market assesses whether or not January represents continuation or exhaustion.
The researchers suggested that till coverage readability improves or a structural crypto-specific catalyst emerges, rallies are prone to fade, volatility will keep reactive to headline danger, and adaptableness quite than conviction will decide survival within the first quarter of 2026.
Whether or not January marked a continuation of the bear pattern or the exhaustion part of promoting strain stays an open query. Nonetheless, at current, the info point out that methods that prioritize relative worth over directional conviction are efficiently navigating the present challenges.
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