Markets
What to know:
- Jefferies is shrugging at the crypto nosedive, saying there’s barely a whiff of a bottom coming, even as bitcoin and ether flirt with levels that used to bait dip buyers.
- The bank calls it a liquidity-driven, risk-off correction, not a breakdown of blockchain mojo; usage stays stubbornly steady, and some corporates keep quietly accumulating bitcoin as if it were a limited-edition handbag.
- Yes, big holders are selling and spot ETF outflows are swirling like a tea-leaf reading session, but in the long arc they expect regulatory progress and traditional finance to nudge selective gains in revenue-linked tokens-no grand rebound, just a few pieces of the pie.
Yes, the selloff’s got all the signs of a party going on hiatus, but bitcoin and ether linger near those nostalgic levels that lured the nibblers in before.
In a note this week, the bank calls it a liquidity-driven correction, not a blockchain apocalypse; network usage keeps marching, and some corporate bigwigs are quietly accumulating bitcoin, as if it’s a designer bag going on sale.
This comes as bitcoin trades near $64,800, roughly 47% below its October 2025 peak of about $123,500, while ether trades around $1,900, down nearly 60% from its prior cycle highs.
They note the old “crypto winter” chatter is back, but say the current weakness is more about broad risk-off sentiment and a rotation from growth assets than any collapse in blockchain fundamentals. More than $2 billion in recent long liquidations has sharpened day-to-day volatility across major tokens.
The bank highlights selling from large bitcoin holders and persistent spot ETF net outflows as near-term headwinds, suggesting institutional portfolio rebalancing is exerting more pressure on prices than retail behavior.
Meanwhile, smaller and mid-sized holders seem to be holding their positions rather than sprinting for the exits, and centralized exchange trading volumes and DeFi lending activity have begun to calm after recent spikes.
Despite a cautious tone, the report stops short of a full bearish forecast. Longer-term catalysts like regulatory progress, infrastructure maturity, and greater traditional-finance participation could eventually drive renewed interest in tokens tied to revenue-generating blockchains, leading to broader divergence rather than a uniform rebound.
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2026-02-06 10:53