Protective demand in the Bitcoin derivatives market has reached historically extreme levels.

VanEck's Sigel Sees Bitcoin Put Demand at 99th Percentile, Calls It a Contrarian Signal

Protective demand in the bitcoin derivatives market has hit the 99th percentile of all-time readings, according to VanEck research head Matthew Sigel. In his view, that level is typically seen as a contrarian signal during extreme risk-off sentiment—and he thinks it's a good time to build long positions.

Sigel also manages the VanEck Digital Transformation ETF (NODE). Since inception, NODE is up 27%, while bitcoin has dropped 33% over the same period. The fund has achieved lower volatility through diversification and a focus on profitable sectors. That said, he warned that massive corporate capex in AI could become a real market drag if those investments don't deliver returns—especially with so much weight concentrated in S&P 500 names.

Note: The 99th percentile is an extreme reading. The 50th percentile represents the median level.