Bitcoin tracks lower with ether and solana, while decred and artificial intelligence tokens rally.

Traders across crypto derivatives markets are reinforcing downside hedges, signaling lingering caution even as select tokens defy the broader pullback.

Decred (DCR) extended its rally despite weakness in majors led by Bitcoin. The governance-centric token surged 16% over the past 24 hours to $34.58 — its highest level since November. Over the last four weeks, DCR has climbed more than 80%, topping performance among the 100 largest digital assets after a Feb. 8 revision to its treasury framework boosted investor interest.

Bitcoin, meanwhile, struggled to build on its midweek rebound toward $70,000 and was trading near $67,000, down roughly 2% on the day. Losses were mirrored across Ethereum, XRP, and Solana, with the broader CoinDesk 20 Index also in negative territory.

Options markets reflect defensive positioning. According to crypto derivatives exchange Deribit, ETF investors and corporate treasuries have been accumulating bitcoin put options at the $60,000 strike with six- to 12-month expiries, underscoring efforts to insure against further downside.

Analysts note that while institutional flows show signs of stabilization, conviction remains limited. Vikram Subburaj, CEO of Giottus, recommended a disciplined strategy, suggesting long-term investors consider phased allocations near support levels rather than deploying large lump sums at resistance.

Derivatives Overview

Market data point to fading bullish momentum:

• Total crypto futures open interest has retreated to about $93.5 billion, returning to multi-month lows after optimism from bitcoin’s bounce quickly dissipated.
• Bitcoin and ether have experienced capital outflows in futures markets, with open interest contracting faster than spot prices.
• The aggregate long-short ratio remains skewed toward short positions, highlighting persistent bearish bias.
• Open interest in Tether Gold (XAUT) fell another 11%, extending its recent decline and indicating reduced appetite for gold-backed tokens.
• Perpetual futures funding rates for BTC and ETH have turned negative again, reflecting stronger short positioning.
• Participation in bitcoin futures listed on CME Group has dropped, with open interest at its lowest level this year.
• On Deribit, one-month bitcoin puts trade at roughly a 7% premium to calls, signaling continued demand for downside protection. Ether options exhibit a similar skew.
• Bitcoin put spreads accounted for about 75% of block trade activity over the past 24 hours. In ether, traders favored both put spreads and straddles, pointing to bearish sentiment alongside expectations of heightened volatility.

Token Developments

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

ICP advanced around 6% in the past 24 hours, rising from $2.41 to approximately $2.56, though below its recent $2.70 high. The move coincided with upbeat earnings from Nvidia, which lifted sentiment across artificial intelligence-focused assets. CEO Jensen Huang emphasized continued momentum in AI development.

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.

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