Crypto derivatives markets are signaling renewed caution, with traders increasing hedges against further downside even as a handful of tokens post outsized gains.

Decred (DCR) stood out, extending its rally despite weakness across major assets led by Bitcoin. The governance-focused cryptocurrency jumped 16% over the past 24 hours to $34.58, its highest level since November. Over the past four weeks, DCR has surged more than 80%, making it the best performer among the top 100 tokens after a Feb. 8 revision to its treasury rules boosted investor confidence.

Bitcoin, meanwhile, hovered around $67,000 after failing to sustain Wednesday’s move toward $70,000. The asset is down roughly 2% on a daily basis. Losses were broadly mirrored across Ethereum, XRP, and Solana, while the broader CoinDesk 20 Index also traded lower.

Demand for protection remains firm. According to crypto derivatives exchange Deribit, ETF investors and corporate treasuries are accumulating bitcoin put options at the $60,000 strike with expiries six to 12 months out, underscoring persistent concerns about additional spot price weakness.

Although institutional flows are showing early signs of improvement, analysts say conviction is still lacking. Vikram Subburaj, CEO of Indian exchange Giottus, recommended a disciplined approach, suggesting investors consider staggered allocations near support levels rather than deploying large sums at resistance.

Derivatives Landscape

Futures and options data highlight a defensive tilt:

• Aggregate crypto futures open interest has slipped to roughly $93.5 billion, revisiting multi-month lows as optimism from bitcoin’s recent rebound faded.
• Bitcoin and ether have both seen capital exit futures markets, with open interest declining more sharply than spot prices.
• The overall long-short ratio continues to favor short positions, reflecting a bearish bias.
• Open interest in Tether Gold (XAUT) fell another 11%, extending a recent slide and suggesting cooling interest in tokenized gold exposure.
• Funding rates on perpetual futures tied to BTC and ETH have turned negative again, signaling that short sellers are regaining dominance.
• Open interest in bitcoin futures listed on CME Group has dropped to its lowest level this year, indicating reduced participation from traditional finance players.
• On Deribit, one-month bitcoin puts continue to trade at about a 7% premium to calls, a sign that traders are still paying up for downside insurance. Ether options show a similar skew.
• Bitcoin put spreads represented roughly 75% of block trade activity over the past 24 hours. In ether, traders favored both put spreads and straddles, pointing to bearish positioning alongside expectations of elevated volatility.

Token Developments

Separately, the DFINITY Foundation proposed burning 20% of revenue generated by its cloud engine, introducing a deflationary mechanism tied to network usage for Internet Computer (ICP). The remaining 80% of revenue would be directed to node operators, replacing fixed emissions with performance-based incentives designed to better align token supply with real demand.

ICP rose around 6% over the past 24 hours, climbing from $2.41 to approximately $2.56, though still below its recent high near $2.70. The token’s gains coincided with strong earnings from Nvidia, which lifted sentiment across artificial intelligence-related assets. CEO Jensen Huang reiterated that AI technology continues to advance rapidly.

Positioned as a decentralized alternative to traditional cloud infrastructure for AI workloads, ICP joined other AI-linked tokens — including Render and Bittensor — in benefiting from renewed investor interest in the sector.