According to CNBC, there is a growing demand for funds designed to protect against market downturns. These funds, which often utilize hedging strategies or invest in defensive sectors, are gaining traction as investors seek safer options amid increased market volatility. Such instruments are proving attractive to those aiming to safeguard portfolios without fully exiting equity markets.

According to @Andre_Dragosch, the selling pressure resulting from writing IBIT and BTC call options might be mitigated by the recent massive spike in volatility. This comes amid insights suggesting that BTC price drops could be linked to dealer hedging tied to IBIT structured products. The statement emphasizes the need to identify trigger points within these financial instruments to anticipate rapid price changes, aligning with evolving market dynamics.

According to @glassnode, short-term implied volatility surged dramatically during the late stages of a selloff, with 1-week implied volatility briefly exceeding 100%. This surge reflects panic hedging as traders sought protection amid heightened downside pressure.

According to @GreeksLive, ETH broke through the $2,200 level without resistance, while large players have been steadily accumulating put options, including very low strike prices. According to @GreeksLive, this put-heavy positioning persisted today, with activity shifting toward March expiries concentrated around the 70,000–80,000 strike range. According to @GreeksLive, the flow indicates ongoing demand for downside protection despite spot strength, a key signal for traders monitoring options flow and hedging activity.

According to @KobeissiLetter, short interest as a percentage of shares outstanding in the S&P 500 ETF SPY is about 9%, near an eight-year low, while the Nasdaq 100 ETF QQQ is about 6%, the lowest since at least 2018. According to @KobeissiLetter, this signals short seller capitulation and highlights historically depressed short interest levels in large-cap index ETFs.

According to @glassnode, the crypto options put call volume ratio jumped from 0.6 to 1.4 following the selloff (source: @glassnode). According to @glassnode, there are no clear signs of call demand returning, indicating the market is not yet pricing a sustained rebound (source: @glassnode).

According to @glassnode, downside skew has steepened across the options curve and short dated skews have not fully reverted. According to @glassnode, options are priced with clear asymmetry, showing downside protection remains in demand and fear has not fully cleared.

According to glassnode, over the last seven days options taker flow was led by put buying and closely followed by put selling, indicating downside hedging dominated the week, source: glassnode. Much of the flow was structured as spreads and concentrated in puts, with very limited interest in upside exposure, source: glassnode.

According to Cathie Wood, odds are high that the gold price will decline because the gold market cap relative to US M2 money supply hit an all-time high intraday, surpassing its 1980 peak when inflation and interest rates were in the mid-teens, signaling stretched valuation versus liquidity; this highlights potential mean reversion risk for gold-to-M2 positioning. Source: Cathie Wood, X. For traders, her view points to elevated downside risk in gold exposure and supports considering hedging or reducing long positions if her valuation warning proves right. Source: Cathie Wood, X.

According to @KobeissiLetter, the S&P 500 measured in ounces of gold is at 1.39, the lowest since 2014, reflecting gold’s outperformance versus equities (source: @KobeissiLetter). According to @KobeissiLetter, the ratio has declined by 1.26, or 48%, since 2022, with gold up 180% and the S&P 500 up 45%, highlighting sustained relative strength in gold that traders monitor via the SPX-to-gold ratio for positioning and risk management (source: @KobeissiLetter).

According to @glassnode, off-chain signals are weakening as spot and futures indicators decline, indicating softer participation and rising sell-side pressure (source: @glassnode). @glassnode also notes increasing options hedging demand and low-conviction ETF indicators, reflecting cooling institutional support (source: @glassnode).

According to @HenriArslanian, perpetual swaps are crypto derivatives with no expiry that stay open until closed and are designed to track spot via a mark price, source: @HenriArslanian on X, Jan 16, 2026. The video explains that funding rates are periodic payments between longs and shorts that help align the perpetual contract price with spot, affecting carry costs and trader positioning, source: @HenriArslanian on X, Jan 16, 2026. It also covers that leverage can amplify returns but increases liquidation risk because margin is marked against a reference price and positions are closed automatically if maintenance margin is breached, source: @HenriArslanian on X, Jan 16, 2026. The content highlights trading use cases such as hedging spot exposure and executing basis strategies that seek to capture funding or price differentials between perps and spot, source: @HenriArslanian on X, Jan 16, 2026. Key trading takeaways include monitoring funding trends, liquidity, and margin requirements to control costs and reduce forced liquidation risk when using perpetual swaps, source: @HenriArslanian on X, Jan 16, 2026.

According to @CoinMarketCap, privacy coins fell sharply during the latest crypto market pullback and moved in tandem with Bitcoin (BTC), undermining the sector’s safe-haven narrative (source: CoinMarketCap). Based on this observed tandem move, traders should treat privacy coins as correlated risk assets during BTC-led drawdowns and adjust hedges, correlation assumptions, and position sizing to manage beta and liquidity risk (source: CoinMarketCap).

According to @AltcoinDaily, the account asked traders what they would do if Bitcoin fell to $45,000 tomorrow, framing it as a hypothetical scenario rather than a confirmed forecast (source: @AltcoinDaily on X, Dec 1, 2025). Practical responses in such BTC $45k scenario planning typically include placing pre-set limit bids, defining stop-loss orders, and using hedges via futures or options so execution is rules-based instead of emotional (source: Binance Academy, Risk Management Basics; source: Deribit Insights, Options Hedging Guides). Traders should wait for price confirmation and size positions within fixed risk-per-trade limits rather than trading the prompt itself (source: CME Group, Risk Management Guidelines).

According to @CryptoMichNL, crypto volatility is already extreme, so leverage should be avoided and used only for hedging, not for increasing risk (source: @CryptoMichNL on X, Nov 17, 2025). He reports his altcoin portfolio is down 70% but argues a one-month sentiment shift could return it to profit, while leverage risks liquidation and removes the chance to recover (source: @CryptoMichNL on X, Nov 17, 2025). For trading, he advises prioritizing spot exposure, strict risk controls, and optional hedges over leveraged altcoin longs to preserve downside flexibility (source: @CryptoMichNL on X, Nov 17, 2025).

According to the source via an X post dated Nov 11, 2025, MegaETH, an Ethereum layer-2 nearing launch, is revoking token allocations from recipients who intend to sell or hedge their allotments (source: X post dated Nov 11, 2025). The same source reports the policy has already been enforced, identifying crypto influencer and Kalshi employee IcoBeast as an affected recipient (source: X post dated Nov 11, 2025). For traders, this confirms stricter airdrop eligibility enforcement where signaling intent to sell or hedge can lead to loss of allocation (source: X post dated Nov 11, 2025).

According to @business, derivatives enabling investors to bet against Meta Platforms’ bonds began actively trading for the first time this week as money managers and banks hedge exposure to an industry piling on debt to fund AI investments (source: Bloomberg/@business). This provides a direct tool for institutions to hedge Meta credit risk amid AI-related corporate borrowing, with the instrument already seeing active trading this week (source: Bloomberg/@business). The source did not mention any direct cryptocurrency market impact (source: Bloomberg/@business).

According to @glassnode, BTC net-premium flows show concentrated selling across the 109,000 to 115,000 dollar range, indicating recent upside moves are being used to hedge, source: @glassnode X post Oct 23 2025 link https://glassno.de/3WkStyy. This points to traders positioning defensively into strength as the market consolidates, highlighting a near-term supply zone around 109k to 115k for trade planning, source: @glassnode X post Oct 23 2025 link https://glassno.de/3WkStyy.

According to @milesdeutscher, only use perps when you need capital efficiency or when you are hedging or farming; otherwise, stick to spot for cleaner carry. Source: @milesdeutscher on X, Sep 29, 2025. He warns that if you plan to hold a position for more than a week, especially a consensus trade, funding will erode returns on perps, making spot more cost-effective for swing holds. Source: @milesdeutscher on X, Sep 29, 2025. He adds that roughly 90% of perp setups should be long continuation or strength trades, highlighting how perps fit best with momentum rather than slow, crowded swings. Source: @milesdeutscher on X, Sep 29, 2025. He emphasizes spot’s no-liquidation benefit, noting it’s easier to sleep at night versus the liquidation risk embedded in leveraged perps; he is not anti-perps, but says they require a real edge and should not replace spot without a good reason. Source: @milesdeutscher on X, Sep 29, 2025.

According to Evan (@StockMKTNewz), the latest deep dive on Gold and Bitcoin highlights $BTGD, a product tracking both assets, as a key indicator for crypto traders. The analysis shows that $BTGD’s correlation with both Bitcoin price movements and gold’s volatility offers a unique trading opportunity, especially as institutional interest in digital assets continues to grow (source: Evan @StockMKTNewz, May 20, 2025). Traders are advised to monitor $BTGD performance alongside Bitcoin spot price action for potential arbitrage and hedging strategies.