Jefferies says the latest crypto selfies show few signs of a sophisticated bottom, even as bitcoin and ether hover near levels that have historically drawn dip buyers.

In a research note this week, the bank described the slowdown as a liquidity-driven correction rather than a lull in blockchain activity, and instead pointed to network usage and selective corporate bitcoin deposits as signs that the sector’s core infrastructure remains intact.

It comes as bitcoin trades around $64,800, down from an October 2025 peak of around $123,500, while ether is down nearly 60% from its previous cycle high.

Jefferies wrote that the sharp price drop has revived the familiar “crypto winter” narrative, but argued that the current weakness is more about broader risk-on sentiment in global markets and away from growth assets than any deterioration in blockchain fundamentals. More than $2 billion in recent long liquidations has further exacerbated daily volatility in major tokens.

The bank highlighted selling by large bitcoin holders and persistent spot ETF net outflows as key period headlines, suggesting institutional portfolio rebalancing is putting more pressure on prices than retail behavior.

At the same time, Jefferies noted that small and medium-sized holders appear to be holding onto existing positions rather than aggressively exiting, while centralized exchange trading volume and decentralized lending activity have begun to stabilize after recent spikes.

Despite its cautious tone, the report is less than entirely bearish. Longer-term catalysts such as regulatory developments, infrastructure maturation, and greater participation by traditional finance could ultimately lead to renewed interest in tokens tied to revenue-generating blockchains, leading to a broader performance shift rather than a uniform recovery, Jefferies said.