Jefferies says the latest crypto selloff shows few signs of an imminent 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 downturn as a liquidity-driven correction rather than a collapse in blockchain activity, pointing instead to continued network usage and selective corporate bitcoin accumulation as evidence that the sector’s underlying infrastructure remains intact.

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.

Jefferies wrote that sharp price declines have revived familiar “crypto winter” narratives, but argued that 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 liquidations has further amplified day-to-day volatility across major tokens.

The bank highlighted selling from large bitcoin holders and persistent spot ETF net outflows as key near-term headwinds, suggesting institutional portfolio rebalancing is exerting greater pressure on prices than retail behavior.

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

Despite its cautious tone, the report stops short of a fully 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 tied to revenue-generating blockchains, leading to wider performance divergence rather than a uniform rebound.

[PRESS RELEASE – San Francisco, CA, USA, February 6th, 2026]

DipCoin today announced the official launch of its Season 1: Horizon Points & Referral System, marking the activation of DipCoin’s long-term incentive framework designed to reward real trading participation, capital contribution, and community growth across its perpetual and Vault ecosystem.

Season 1: Horizon represents more than a limited-time promotion. It establishes the foundational scoring logic, risk controls, and reward architecture that will guide DipCoin’s incentive programs across future seasons. The system is built to align user rewards with meaningful platform activity (trading, liquidity commitment, position management, and referrals) while discouraging short-term manipulation and low-quality participation.

With Horizon, DipCoin takes a step toward transforming incentives from short-term marketing campaigns into a structured, sustainable ecosystem engine.

A New Chapter: Why “Horizon”

“Horizon” symbolizes the beginning of DipCoin’s transition from a standalone perpetual trading platform into a contribution-driven ecosystem. Rather than focusing only on trading volume, Season 1 expands reward eligibility to multiple forms of participation, recognizing that healthy markets are built on more than just transactions.

This season marks the first official deployment of DipCoin’s long-term points system, which will serve as a core reference for all future seasons and ecosystem benefit distribution.

Season 1 Schedule

All Season 1 calculations follow UTC time:

• Start: February 4, 2026 – 00:00 UTC
• End: March 20, 2026 – 23:59:59 UTC

The DipCoin interface automatically converts these times to each user’s local timezone for convenience.

What Users Can Earn Points For

Season 1: Horizon quantifies real participation through four core activity categories inside DipCoin’s Perp Accounts and Vault Accounts:

1. TVL Points (Deposit Contribution)
2. Generated from average daily deposited balances.
3. Trading Volume Points (Trading Activity)
4. Generated from executed perpetual trades and Vault strategy execution.
5. Position Holding Points (Position Size Contribution)
6. Generated from average daily effective position size.
7. Liquidation Points (Loss-Based Conversion Points)
8. Generated when forced liquidations occur and result in real losses.

Only Perp and Vault activity is included. Swap trades are excluded from Season 1 calculations.

This design ensures that rewards reflect real economic engagement rather than surface-level activity.

Early Bird Rewards: Honoring Early Supporters

To recognize users who traded on DipCoin before Season 1 officially begins, the platform includes historical data as Early Bird Rewards:

Included historical data:

• Trading volume points
• Liquidation loss points

These historical points receive a 3× multiplier and appear in the Early Bird Rewards section of each user’s dashboard.

TVL, position holding, team boosts, and referrals are not included in Early Bird calculations.

How Total Season Points Are Calculated

Season Points consist of four components:

• Base Points
• Boosted Points
• Referral Rewards
• Early Bird Rewards

Boosted Points are derived from team participation:

Boosted Points = Daily Base Points × (Team Multiplier − 1)

Final Season Points = Daily Base Points + Boosted Points + Referral Rewards + Early Bird Rewards (accumulated across the season)

Welcome Points for New Users

New users who bind a wallet using an invitation code receive a 3-day Welcome Bonus:

• All Base Points earn 2x during the first three natural days.

The bonus applies to:

• TVL Points
• Trading Volume Points
• Position Holding Points
• Liquidation Points

If a user invites others during the Welcome period, the 2× bonus still applies on that day. From the following day onward, the user transitions to standard inviter status and begins earning referral rewards instead.

Team Acceleration System

DipCoin introduces a team-based acceleration model that rewards collaborative growth.

Each user may:

• Create one team
• Join one team

Users can simultaneously hold inviter and invitee roles.

The system compares both team multipliers and applies the higher value as the user’s effective multiplier.

Team Participation Requirements

For a directly invited member to contribute toward team acceleration:

• Daily trading volume ≥ 2,000 USDC
• Daily average position size ≥ 500 USDC

This ensures that team growth is driven by real traders, not passive or shell wallets.

Inviters’ own points are not counted toward their team’s total.

Referral Rebate Rewards

Inviters receive:

• 10% of the Base Points generated by each qualified direct invitee.

Only invitees who accumulate at least 20 Base Points are eligible to generate referral rewards.

Referral rewards are additive and do not reduce the invitee’s own points.

Post-Season Settlement

After Season 1 concludes:

• Season data is frozen.
• Risk review and verification are completed within 7 business days.
• Final confirmed results are published and reflected in user dashboards.

Season 1 points will be archived for historical reference. New seasons will start with fresh accumulation.

Why This Matters

Many points programs reward raw volume alone. DipCoin’s Horizon system rewards capital commitment, position exposure, trading activity, and community building together.

This multi-dimensional design reflects how real markets function and encourages behavior that strengthens liquidity, depth, and long-term platform health.

Season 1: Horizon sets the baseline for how DipCoin plans to distribute ecosystem value going forward.

How to Participate

Season 1: Horizon began February 4, 2026 (00:00 UTC).

Users can start earning points by:

• Depositing into Perp or Vault accounts
• Trading perpetual contracts
• Holding positions
• Participating in Vault strategies
• Inviting qualified users

Users can learn more and get started at: https://dipcoin.io

About DipCoin

DipCoin is a decentralized perpetual trading protocol built on Sui, focused on delivering fully on-chain, non-custodial perpetual markets with professional-grade execution and transparent infrastructure. DipCoin is building trading primitives and strategy participation tools designed for long-term on-chain market participants.

TLDR:

• Ethereum state grows 100 GB yearly; 20x scaling would create 8 TB state in four years for builders. 
• Strong statelessness and state expiry solutions face backwards compatibility issues with existing apps. 
• New temporary storage resets monthly while UTXO systems enable zero-duration expiry for cost savings. 
• Developers can keep using permanent storage initially, then migrate to cheaper tiers over time gradually. 

Ethereum co-founder Vitalik Buterin has unveiled a comprehensive proposal to address state scaling challenges on the network.

The plan introduces new forms of state storage alongside existing mechanisms to achieve 1000x scalability. Posted on February 5, Buterin’s proposal acknowledges that while Ethereum has clear pathways for scaling execution and data, state scaling remains fundamentally different and requires innovative solutions.

Asymmetric Scaling Challenge Creates Need for Alternative Approach

Buterin outlined in his post on X that Ethereum faces different scaling realities across three critical resources. “We want 1000x scale on Ethereum L1. We roughly know how to do this for execution and data. But scaling state is fundamentally harder,” he stated.

Execution can achieve 1000x gains through ZK-EVMs, while data scaling reaches similar levels via PeerDAS technology. However, state scaling lacks such breakthrough solutions.

Current state grows at 100 GB annually, and a 20x increase would create 2 TB yearly growth. After four years, this results in 8 TB total state size that builders must maintain.

The proposal explains that database efficiency and syncing present major obstacles. Modern client databases struggle with multi-terabyte states because writes require logarithmic tree updates.

Buterin emphasized that state differs fundamentally from computation and data. Builders need complete state to construct any block, regardless of gas limits.

This reality demands conservative scaling approaches and eliminates many sharding techniques that work for other resources. The network cannot rely on professional builders alone, as permissionless block building requires reasonable setup costs.

Strong Statelessness and Expiry Mechanisms Face Compatibility Issues

The post analyzed why previously proposed solutions fall short of requirements. Strong statelessness would require users to specify accessed accounts and storage slots while providing Merkle proofs.

This approach creates three major problems: dependency on off-chain infrastructure, backwards incompatibility with dynamic storage access patterns, and increased bandwidth costs reaching 4 KB per simple ERC20 transfer.

State expiry designs also encounter fundamental obstacles. Creating new accounts requires proving nothing existed at that address throughout Ethereum’s entire history.

Repeated regenesis schemes demand N lookups for account creation in year N. Address period mechanisms attempt mitigation but break compatibility with existing ERC20 contracts that use opaque storage slot generation.

Buterin noted these explorations reveal important patterns. “Replacing all state accesses with Merkle branches is too much, replacing exceptional-case state accesses with Merkle branches is acceptable,” he explained.

The analysis points toward tiered state systems that distinguish high-value frequently accessed state from lower-value rarely accessed state. However, backwards compatibility proves extremely difficult since lower tiers cannot support dynamic synchronous calls at all.

New Storage Types Enable Developer Choice Between Cost and Flexibility

The proposal introduces temporary storage that resets monthly and UTXO-based systems as primary solutions. Buterin described his vision: “The most practical path for Ethereum may actually be to scale existing state only a medium amount, and at the same time introduce newer forms of state that would be extremely cheap but also more restrictive.”

Temporary storage suits throwaway state for auctions, governance votes, and game events. ERC20 balances could use resurrection mechanisms with bitfields tracking historical state usage.

This design would support 8 TB of temporary state monthly with only 16 GB permanent storage for tracking. UTXO systems take expiry to its logical extreme with zero-duration periods.

Buterin envisions user accounts and smart contract code remaining in permanent storage for accessibility. NFTs and token balances would migrate to UTXOs or temporary storage, while short-term event state uses temporary mechanisms.

Core DeFi contracts would stay permanent for composability, but individual positions like CDPs could move to cheaper tiers. Developers can initially use permanent storage exclusively, then optimize over time as the ecosystem adapts.

The crypto market is facing renewed pressure as prices and investor confidence continue to weaken.

The total cryptocurrency market capitalization has fallen by about $2 trillion from its October 2025 peak of $4.38 trillion, according to data from CoinGecko. As of early February, the market is valued between $2.1 trillion and $2.3 trillion.

At the time of writing, Bitcoin (BTC) was trading close to $65,000 after briefly falling to about $60,000 on Feb. 5. The largest cryptocurrency is now down almost 50% from its peak of $126,080 in October 2025.

Large liquidations, exchange-traded fund withdrawals, and reduced risk appetite in financial markets have all contributed to the recent decline. This sharp pullback has been matched by a collapse in market sentiment.

The Crypto Fear & Greed Index, compiled by Alternative, fell three points in the past day to 9, its lowest reading since June 2022. The index tracks factors such as volatility, momentum, and social sentiment. A score at this level points to deep fear among traders and long-term investors alike.

Periods like this are often linked to heavy selling in leveraged markets. When prices fall quickly, margin calls force traders to close positions. These forced exits add more pressure and can push prices even lower. As a result, losses tend to spread across major tokens in a short period.

Liquidation pressure and institutional selling

The current sell-off has been one of the most intense since late 2022. Some market trackers estimate that more than $1 trillion in crypto value has been erased over the past month alone.

Jamie Coutts, a crypto analyst at Real Vision, wrote on X that signs of capitulation are becoming stronger. He noted that Bitcoin’s Implied Volatility Index has climbed to 88.55, close to the level seen during the FTX collapse. At the same time, Coinbase recorded daily trading volume of $3.34 billion, one of the highest in its history.

Coutts also pointed out that Bitcoin’s daily relative strength index has dropped to 15.64, below levels seen during the March 2020 market crash. According to him, this combination of margin calls and forced selling is typical during major downturns. He added that capitulation often unfolds over several days or weeks rather than in a single event.

Institutional activity is adding to the pressure. CryptoQuant contributor Darkfost said in a Feb. 6 report that the Coinbase Premium Gap has turned deeply negative.

This means that Bitcoin is trading at lower prices on Coinbase, a platform that is often used by professional and institutional investors, than on Binance, which has a larger user base of retail investors. Large investors are typically selling more when this gap widens to the downside. 

The current reading is the weakest seen so far this year, suggesting that institutional demand remains soft. 

Uncertain outlook amid market stress

The wider financial environment is also affecting digital assets. Tighter financial conditions, changing interest rate expectations, and geopolitical concerns have all contributed to a decline in appetite for riskier investments.

Technology stocks, commodities, and cryptocurrencies have all faced renewed selling in recent weeks. Traders are hesitant to take on big positions in this kind of environment. Because there is less liquidity, price fluctuations are more severe and unpredictable. Rapid changes in either direction can be triggered by even minor shifts in data or sentiment.

Some analysts say extreme fear levels can sometimes appear near market bottoms. Past cycles show that strong rebounds have followed periods of deep pessimism. Still, others warn that stabilization may take time, especially if selling from funds and institutions continues.

Friday has come around again, which means another batch of expiring Bitcoin options as spot markets continue to melt down. 

Around 34,000 Bitcoin options contracts will expire on Friday, Feb. 6, with a notional value of roughly $2.1 billion. This event is much smaller than last week’s end-of-month expiry.

Crypto markets have collapsed into bear market territory, losing around $686 billion since the start of the week, as sentiment plunges and both retail and institutional investors dump crypto assets.

Bitcoin Options Expiry

This week’s batch of Bitcoin options contracts has a put/call ratio of 0.59, meaning that there are more expiring calls (longs) than puts (shorts). Max pain is around $82,000, according to Coinglass, which is well above current spot prices, so many will be out of the money on expiry.

Open interest (OI), or the value or number of Bitcoin options contracts yet to expire, remains highest at $100,000 and $70,000, which have $1.1 billion at these strike prices on Deribit. Total BTC options OI across all exchanges has been in decline for a week and is at $32.5 billion.

“BTC option flows suggesting downside plays not over,” said Deribit.

“Bitcoin’s open interest is stacked through the $80K to $90K region, with elevated put activity showing traders leaned defensive into the move.”

🚨 Options Expiry Alert 🚨

At 8:00 UTC tomorrow, over $2.5B in crypto options are set to expire.$BTC: $2.15B notional | Put/Call: 1.42 | Max Pain: $82K$ETH: $408M notional | Put/Call: 1.13 | Max Pain: $2.55K

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Bitcoin’s open interest is stacked through the $80K to $90K region,… pic.twitter.com/WPCdYeS2aC

— Deribit (@DeribitOfficial) February 5, 2026

“The upcoming $60,000 range represents the consolidation zone prior to the Trump rally, where support remains relatively strong. Should a rapid dip occur in the short term, it may present a buying opportunity,” said crypto derivatives provider Greeks Live.

In addition to today’s batch of Bitcoin options, around 217,000 Ethereum contracts are also expiring, with a notional value of $400 million, max pain at $2,550, and a put/call ratio of 1.15. Total ETH options OI across all exchanges is around $7.1 billion. This brings the total notional value of crypto options expiries to around $2.5 billion.

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Spot Market Outlook

Crypto market capitalization has tanked to a 16-month low of $2.27 trillion as the digital asset exodus continued.

Bitcoin was smashed by double digits, tanking below $60,000 in early trading in Asia on Friday. The asset has now lost 50% from its all-time high, dumping more than $60,000 in just four months.

Ether is back at bear market lows, falling below $1,800 briefly, and the altcoins have been destroyed in what appears to be the start of another long, drawn-out crypto winter.

Bitwise Asset Management has filed a Form S-1 registration statement with the U.S. Securities and Exchange Commission (SEC) for a spot Uniswap ETF, marking a major step toward a regulated exchange-traded product tied directly to the UNI token.

Uniswap ETF filing fails to lift UNI price

Despite the filing, Uniswap (UNI) showed little immediate upside. The token continued to trade lower, reflecting cautious sentiment across altcoins even as institutional interest grows.

At press time, UNI was exchanging hands at $3.22, down 14.5% over the past 24 hours.

The filing, submitted on February 5, 2026, proposes the launch of the “Bitwise Uniswap ETF,” a trust designed to hold Uniswap tokens as its primary asset. It provides investors with a regulated vehicle to gain exposure to UNI price movements through traditional brokerage accounts.

According to the SEC registration, the ETF would issue shares intended to trade on a U.S. exchange under a yet-to-be-announced ticker symbol.

Bitwise Investment Advisers will sponsor and manage the trust, while Coinbase Custody will hold the Uniswap tokens. The structure aims to offer investors exposure to Uniswap without requiring them to manage wallets or private keys.

If approved, the Bitwise Uniswap ETF would be the first regulated ETF focused on a DeFi protocol’s native token in the U.S. market. UNI is the governance token for the Uniswap decentralized exchange, one of the largest decentralized trading venues built on Ethereum.

Bitwise’s filing arrives in a market where demand for crypto ETFs is evolving. Bitwise and other issuers have recently filed for a range of altcoin-linked ETFs, including products tied to AAVE, Chainlink, and other major tokens.

Trader losses intensified during the first week of February. Liquidation volume kept rising as the market repeatedly crushed recovery expectations, driven by consecutive red candles.

However, several analyses point to light at the end of the tunnel, even though a rapid recovery remains unlikely.

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Over $2.6 Billion Liquidated in 24 Hours Reflects Structural Market Weakness.

CoinGlass reported that total crypto market liquidations reached $2.65 billion over the past 24 hours. Long positions accounted for more than $2.2 billion of that total.

“According to CoinGlass data, in the past 24 hours, 586,053 traders were liquidated, with total liquidations reaching $2.65 billion,” CoinGlass reported.

CoinGlass data also shows that the smallest event in the Top 10 Crypto Liquidation Events of All Time occurred recently on January 31, with $2.56 billion in liquidations. This suggests the ranking could soon be reshuffled.

The market analysis account, The Kobeissi Letter, explained that this move is not a short-term shock. It reflects a structural downturn that has been developing since October last year.

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The root causes include weak liquidity, negative sentiment, and cascading liquidation pressure across markets. The account emphasized that this is a recurring cycle: liquidations damage sentiment, and worsening sentiment triggers further liquidations.

Bitcoin’s intraday price swings of up to $10,000 were attributed to sharply reduced market depth. The current Bitcoin market depth is only 30% of its October peak. This condition mirrors the post-FTX collapse environment seen in 2022.

A BeInCrypto report noted that ongoing panic selling has pushed many crypto treasuries toward rising bankruptcy risk. Bitcoin’s drop to $60,000 pushed MicroStrategy’s holdings below cost basis, increasing balance-sheet pressure.

Against this backdrop, veteran technical analyst Peter Brandt offered a forecast based on the “Bitcoin Power Law” model. He suggested that Bitcoin could trade within a “banana peel” range, with potential support near $42,000.

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Brandt argued that if Bitcoin enters this zone, similar to previous bear cycles, bullish investors are unlikely to remain below that level for an extended period.

Is a Major Opportunity Taking Shape?

Despite the bleak outlook, not all analysts remain pessimistic.

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Glassnode reported that Bitcoin’s capitulation index recorded its second-largest spike in the past two years. This signals a sharp rise in forced selling. The metric tracks supply held at different price levels and measures market stress to identify potential local bottoms.

Such stress events often coincide with rapid de-risking and heightened volatility. Investors rebalance positions during these phases.

Large-scale liquidations also reduce overall market leverage. This process drives a shift away from leveraged speculation toward spot accumulation. “Weak hands” exit, making room for higher-conviction investors.

“Bitcoin deleveraging may create a strong opportunity soon,” economist Daniel Lacalle noted.

These observations suggest a buying opportunity may be forming. They do little, however, to pinpoint exactly when a recovery will begin.