Jefferies says the latest cryptocurrency sell-off shows few signs of an imminent bottom, even as bitcoin and ether remain near levels that have historically attracted dip buyers.
In a research note this week, the bank described the slowdown as a liquidity-driven correction rather than a collapse in blockchain activity, instead pointing to continued use of the network and selective corporate accumulation of bitcoins as evidence that the sector’s underlying infrastructure remains intact.
This comes as bitcoin is trading near $64,800, about 47% below its October 2025 high of about $123,500, while ether is trading around $1,900, nearly 60% off its previous cycle highs.
Jefferies wrote that sharp price declines have reignited well-known “crypto winter” narratives, but argued that the current weakness is more closely tied to broader risk-off sentiment in global markets and a rotation away from growth assets than to any deterioration in blockchain fundamentals. More than $2 billion in recent long-term liquidations have further amplified daily volatility in major tokens.
The bank highlighted selling by large bitcoin holders and persistent net outflows from spot ETFs as major headwinds in the near term, suggesting institutional portfolio rebalancing is putting greater pressure on prices than retail behavior.
At the same time, Jefferies noted that smaller and mid-sized holders appear to be holding on to existing positions rather than exiting aggressively, while centralized stock trading volumes and decentralized lending activity have begun to stabilize after recent spikes.
Despite its cautious tone, the report stops short of offering a completely bearish outlook. Jefferies said longer-term catalysts such as regulatory progress, infrastructure maturity and greater participation by traditional finance could eventually drive renewed interest in tokens linked to revenue-generating blockchains, leading to a broader divergence in performance rather than a flat rebound.
