By the relative weakness do you just mean price drop?
And how can SPY be hedge considering bitcoins incomparable volatility. Are position sizes proportional to volatility or something like that?
The US market opens at 6:30 AM PST. In the 30 minutes before the market open, BTC and the SPY/QQQ futures tend to be highly correlated, but let's say NQ (which is a futures contract that tracks the Nasdaq) rises .5% but BTC only rises .25%, then this would be relative weakness on the part of BTC. The trade would be to short BTC and go long QQQ in equal size.
