Jefferies says the latest crypto selloff shows few signs of an imminent bottom, even as bitcoin and ether hover near levels that have historically attracted dip buyers.
In a research note released this week, the bank described the economic slowdown as a liquidity-driven correction rather than a collapse in blockchain activity, instead pointing to continued use of the network and selective accumulation of bitcoin by companies as evidence that the sector’s underlying infrastructure remains intact.
This comes as bitcoin trades at nearly $64,800, about 47% lower than its October 2025 high of around $123,500, while ether trades at around $1,900, down nearly 60% from its previous cycle highs.
Jefferies wrote that the sharp price declines have reignited familiar narratives of “crypto winter,” but argued that the current weakness is more closely linked to a broader sense of risk aversion in global markets and a shift away from growth assets than to a deterioration in blockchain fundamentals. Over $2 billion in recent long liquidations have further amplified the daily volatility of major tokens.
The bank pointed to sales by large bitcoin holders and continued net outflows from spot ETFs as key near-term headwinds, suggesting that the rebalancing of institutional portfolios is putting greater pressure on prices than retail behavior.
At the same time, Jefferies noted that small and mid-sized holders appear to be holding on to their existing positions rather than aggressively exiting them, while centralized stock trading volumes and decentralized lending activity have begun to stabilize after recent spikes.
Despite its cautious tone, the report does not offer a completely bearish outlook. Jefferies said long-term catalysts such as regulatory progress, infrastructure maturity and greater participation from traditional finance could eventually drive renewed interest in tokens tied to revenue-generating blockchains, leading to a broader divergence in performance rather than a uniform rebound.
