Bitcoin Drops 47% From Peak, But Jefferies Sees No New Crypto Winter

ETF outflows and inactive ‘whales’ signaled market caution, while a proposed market structure bill was seen as a potential future catalyst.

• Jefferies’ Andrew Moss said the recent selloff was a correction, not a crypto winter, arguing that industry development and institutional activity remained intact.
• Bitcoin had fallen about 47% from its early October high and moved closely with tech stocks, as its correlation with the Nasdaq remained elevated.

Bitcoin’s (BTC) drop below $67,000 has rattled investors, but Wall Street analysts are not calling time on crypto yet. According to Andrew Moss, Jefferies’ senior vice president and head of digital assets research, this sharp decline appears to be a market correction, not the start of a new crypto winter. 

Speaking on Yahoo Finance on Tuesday, Andrew Moss stated that the pullback in the crypto market is a correction, not a structural downturn. “I’d argue that we’re not in a crypto winter,” he added. According to him, a true winter period would be when prices fall and “development slows, TradFi initiatives decelerate, and questions emerge about the longevity of this industry.”

Moss added that Bitcoin is down about 47% from its all-time high since early October 2025, while Ethereum (ETH) has fallen roughly 55%, acknowledging that there are sharp price drops, but he argued that price drops alone do not equal a crypto winter. 

Crypto Volatile, Retail Sentiment Wavers

Bitcoin (BTC) traded at $66,666.29, down by 3.32% in the past 24 hours. On Stocktwits, retail sentiment around Bitcoin remained in a ‘bearish’ zone, as chatter around the coin dropped from ‘extremely high’ to ‘high’ over the past day.

Ethereum (ETH) traded at around $1,936.8, down by 3.7% in the last 24 hours. On Stocktwits, the retail sentiment around Ethereum remained in the ‘bullish’ territory, with chatter at ‘high’ levels over the past day.

Bitcoin Tracks NASDAQ As ETF Outflows Rise

Moss said crypto is moving with broader markets. Bitcoin and tokens more broadly, he said, “don’t trade like gold.” They’re far more correlated with risk assets, far more correlated with the NASDAQ.” 

Adding to that sentiment, Bloomberg reported in early January that Bitcoin’s correlation with the Nasdaq 100 climbed to a two-year high ahead of U.S. inflation data, underscoring how closely digital assets move with tech stocks.

On-chain data showed smaller retail holders have begun buying again, but larger “whales” remain inactive. Spot Bitcoin ETFs have also recorded notable net outflows in recent sessions.

U.S. Regulation Could Be The Next Catalyst 

Looking ahead, Moss pointed to a proposed U.S. crypto market structure bill as a potential catalyst. “A comprehensive regulatory framework is one of the largest drivers of TradFi adoption,” he argued that it would make rules clearer and could accelerate institutional blockchain adoption even as short-term volatility continues.

Read also: Paul Barron Warned China ‘Dumping Dollars’ Could Weigh On Crypto

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