According to @KobeissiLetter, the cost of hedging a 10% drop in the Nasdaq 100 ETF QQQ relative to bullish bets has risen to its highest level since the 2022 bear market, with relative hedging costs up about 40% over the last five months and current downside protection pricing higher than in 92% of recent cases, indicating elevated demand for puts and downside insurance (source: @KobeissiLetter). The post adds that investors are actively adding hedges to protect long equity exposure and that growing caution is tied to the September Federal Reserve meeting next week, with market focus centered on the policy decision and guidance (source: @KobeissiLetter). For crypto markets, episodes of equity risk-off have coincided with stronger equity-crypto co-movement, with Bitcoin’s correlation to stocks rising notably in 2022, which frames potential spillover risk for BTC and ETH around major Fed events (source: International Monetary Fund, Global Financial Stability Note, January 2022).