Bitcoin (BTC) was trading around $103,744 this November 6, 2025. The leading asset is consolidating its market dominance. However, this move has caused a disparate performance of altcoins, with many tokens suffering selling pressure. Operators, according to market data, are intensifying hedging strategies to limit losses.
Bitcoin’s stability above the $103,000 level has concentrated capital in the main asset. This generates a “risk-off” bias in the sector. Nonetheless, there were notable exceptions. XRP posted a daily gain of 4%. ZCash (ZEC) showed impressive strength, with a 20% rise on the day and a cumulative gain of nearly 1,100% in 90 days.
This disparate performance of altcoins illustrates the market’s maturity. Not all assets move in unison anymore. Ethereum, for example, showed strength last May (+47%) compared to Bitcoin (+9%). BTC’s current consolidation coexists with the unique cycles of select assets. Therefore, institutional investors are adopting more sophisticated risk management.
Is this institutional risk management enough to prevent a systemic collapse?
Sophisticated traders are actively turning to derivatives. They use put options and futures to establish value floors in their portfolios. Stablecoins are used as temporary safe havens. Likewise, institutional participation has grown. The average crypto allocation rose to 7% of AUM in 2025, up from 6% in 2024. Firms like Qube and Virtu are now hiring 24/7 traders to manage this permanent volatility.
The coexistence of a strong Bitcoin and weak altcoins increases demand for structured products and derivatives. However, this also introduces risk. An excessive concentration of leveraged hedges could amplify downturns, like the October 11 crash that wiped out $19 billion in leverage. Investors will closely watch options expirations. The blockchain platform continues to mature, but altcoin liquidity becomes constrained during times of stress.
