Strategies Focused on Relative Value Outshine Directional Bets Amid Crypto Market Instability

A survey by Presto Research and Otos Data reveals that crypto funds began 2026 with losses and a defensive stance, prompting investors to shift towards relative-value and market-neutral trades due to market uncertainty and price fluctuations. While all liquid crypto hedge funds experienced a 1.49% dip, market-neutral funds gained approximately 1.6%. In a six-month period, these neutral strategies saw nearly a 5% increase, while fundamental funds declined by over 24%. Data suggests that traders adopted a defensive posture without panic, with stress accumulating in pockets rather than triggering widespread liquidation. Given the lack of policy clarity and crypto-specific catalysts, the researchers suggest adaptability will be key for survival in the volatile market. They also highlight that strategies prioritizing relative value are successfully navigating the current market challenges.