I've been looking at recent fund data and noticed that since 2026, market-neutral strategies have clearly gained an advantage. Insights from Presto Research and Otos Data show that investors are truly shifting their strategies at a rapid pace.

Looking at January's performance, the overall liquid crypto hedge funds declined by an average of 1.49%. However, what's interesting is that results vary greatly depending on the strategy. Fundamental funds and quant funds declined by 3.01% and 3.51%, respectively, while market-neutral funds rose by 1.6%. This difference is not just coincidence; it reflects a clear strategic choice amid macro uncertainty and price volatility.

When examining the trend over the past six months, this advantage becomes even more evident. Market-neutral strategies have nearly gained 5%, while fundamental funds have fallen by 24%. During the same period, Bitcoin, Ethereum, and Solana declined by approximately 31%, 23%, and 47%, respectively, highlighting how tough the overall market environment has become.

Traders' psychology is also changing. There’s a stronger defensive stance, with a shift from call buying to downside hedging amid failed rallies. In other words, there's a strategic shift from aggressive to defensive investing. During such times, relative value strategies tend to have an edge.

What’s intriguing is that the market is not in a panic. Volatility continues to react to headline risks, but until clear policies or crypto-specific catalysts emerge, this defensive stance is likely to persist. I think the current market environment is characterized by an increasing number of investors prioritizing risk management while waiting for a market turning point.