The crypto market has recently taken a big hit, especially in the most popular and hyped-up areas. This has made many investors more careful. At the same time, it’s giving a push to new investment strategies that focus on managing risk more actively.

In just a few years, the number of ways to invest in crypto has grown rapidly. Investors can now buy cryptocurrencies directly, invest in spot Bitcoin ETFs, use options and futures, or put money into companies involved in mining, exchanges, or crypto infrastructure.

But with all these choices, results vary a lot. Some investments have been hurt by things like using too much borrowed money (leverage), high prices, or funding issues.

John D’Agostino from Coinbase Institutional said that Bitcoin investment tools have expanded fast for both regular and big investors. However, he pointed out that how people use leverage and manage risk really matters.

**Overpaying for Bitcoin**

Bitcoin dropped as much as 36% from its high of $126,223 on October 6 and is still down about 30%. Companies that hold a lot of Bitcoin on their balance sheets, like Strategy Inc., got hit even harder.

These companies often borrow money or sell stock to buy more Bitcoin. In the past, their share prices were higher than the value of the Bitcoin they owned — and investors thought that would always continue. But when Bitcoin prices fell, their stock prices crashed even more.

Strategy Inc.’s stock has dropped 54% since Bitcoin’s October high and is down 63% from mid-July. Japan’s Metaplanet and other similar companies also suffered large losses.

Lyn Alden, founder of an investment strategy firm, said this was like a small bubble that popped. Now, investors are more careful about overpaying for these types of stocks.

**Crypto Miners Are Changing Course**

Bitcoin mining companies like IREN, CleanSpark, Riot, and MARA were once investor favorites. They had cheap electricity deals and made big profits. Now, many are shifting to building AI data centers to serve tech companies.

These stocks were strong performers earlier because they were involved in both crypto and AI — two of the hottest trends in tech. But some investors are now worried about these companies’ profits since they carry a lot of debt and need constant funding to make the switch.

Matthew Sigel from VanEck Onchain Economy ETF said that when the economic environment changed a bit, these mining stocks took a hit.

**Energy Is a Big Piece of the Puzzle**

In the coming years, crypto mining and AI are expected to work more closely together. Crypto infrastructure could help solve a growing energy shortage for U.S. data centers.

Morgan Stanley estimates there will be a 47-gigawatt power shortage in U.S. data centers by 2028. But if crypto miners are converted into AI data centers, they could cover 10 to 15 gigawatts of that need.

Brian Dobson at Clear Street said that if you want a company exposed to both crypto and AI growth stories, look at crypto miners — they’re sitting at the center of this trend.

**New Investment Strategies Are Gaining Ground**

Some companies believe the best way to deal with market ups and downs is through actively managed or hedged investment strategies.

The VanEck Onchain Economy ETF, which launched in May, has gained 32% by avoiding risky, over-leveraged companies. Sigel believes that active management is key because crypto is still a young and unpredictable asset class.

Another example is EMJ Crypto Technologies (EMJX), run by activist investor Eric Jackson. EMJX offers an actively hedged treasury that holds Bitcoin, Ethereum, and other top cryptocurrencies. It also makes money by selling options rather than taking on debt or issuing more stock.

EMJX recently went live after SRx Health Solutions announced it would acquire the company. The combined company will trade under the ticker EMJX starting in early 2026.

**Bitcoin Remains Strong**

Despite all the market noise, Bitcoin remains the leader in the digital currency world. Institutional investors are backing it heavily.

Harvard University’s endowment now holds BlackRock’s iShares Bitcoin Trust as its biggest public stock position. Sovereign wealth funds from Luxembourg, Abu Dhabi, and the Czech Republic are also investing in Bitcoin.

Crypto miners also prefer Bitcoin as their main currency.

With more investment options now available — like ETFs, regulated exchanges, and safer storage — experts like Coinbase’s D’Agostino believe the crypto market is becoming more like traditional markets such as stocks or commodities.

He says if you’re comfortable investing in gold, real estate, or art but still afraid of crypto, you might just need better information.