Bitcoin is on track to post its second consecutive flat year, a sequence with almost no precedent in its history. That alone would be remarkable. What makes it structurally significant is what it reveals about the market underneath: realized volatility has collapsed from 70% to 40%, funding rates have gone from 19% to 1%, and the retail speculation that powered a decade of outsized returns has quietly retreated.
The implications extend well beyond price. The strategies that defined crypto hedge fund performance were not products of skill. They were products of a market regime that no longer exists. Most crypto hedge funds had a negative 2025. The ones that didn't were trading a fundamentally different playbook.
Understanding what changed, why it changed, and what the new playbook looks like is what separates capital positioned for this market from capital still positioned for the last one. This is what we explain below for our subscribers.
Bitcoin returns vs. Crypto Hedge Fund returns
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