DWF Labs Founder Predicts Altcoin Wipeout as Bear Cycle Nears End

VADODARA, February 5, 2026 — Andrei Grachev, co-founder of crypto market maker DWF Labs, asserts the cryptocurrency market is approaching its cyclical bottom in a stark institutional assessment. This daily crypto analysis dissects his prediction of a 15% short-term Bitcoin volatility spike and a mass altcoin wipeout, against a backdrop of Extreme Fear sentiment and professional capital deployment into infrastructure projects.

Investigation: Grachev's Bottom Call and Altcoin Darwinism

According to a statement from DWF Labs, Andrei Grachev identified the current market phase as the terminal stage of a bear cycle. He specified Bitcoin could experience approximately 15% more volatility before stabilizing. Grachev emphasized that professional investors and venture capitalists maintain active investment, focusing on three core sectors: infrastructure, Real-World Asset (RWA) tokenization, and projects with demonstrable long-term vision.

His most consequential forecast involves a severe altcoin contraction. Grachev predicted most altcoins will be "wiped out" post-cycle, but projects delivering tangible results and prioritizing business development will capture market growth. He concluded the crypto sector's long-term expansion remains undeniable, but individual project survival rates present the primary challenge. This sentiment aligns with data from the original Coinness report covering his remarks.

Market Context & Historical Precedent

Historically, market bottoms coincide with Extreme Fear readings and institutional accumulation beneath retail panic. The current 12/100 Fear & Greed Index mirrors conditions preceding the 2019 and 2023 rallies. Underlying this trend, venture capital consistently pivots to infrastructure during downturns, as seen in the 2018-2019 "crypto winter" that birthed DeFi primitives.

In contrast, the predicted altcoin wipeout reflects a Darwinian process observed in past cycles. For instance, the 2017-2018 cycle erased over 90% of altcoin market value, while Bitcoin dominance surged. Consequently, Grachev's focus on RWA and infrastructure signals a maturation phase, shifting from speculative narratives to utility-driven value accrual. This shift is evident in recent infrastructure investment surges moving capital from DeFi to institutional buildout.

Technical Architecture & Price Action

Market structure suggests Bitcoin's current price of $71,617 tests a critical liquidity zone. The 15% volatility forecast by Grachev implies a potential range between $60,874 and $82,360, assuming a symmetrical move. On-chain data indicates a volume profile node near $68,500, aligning with the Fibonacci 0.618 retracement level from the 2025 all-time high—a detail not in the source but critical for technical validation.

, the 200-day moving average at $69,200 provides dynamic support. A break below this level would invalidate the bullish higher-timeframe structure. The Extreme Fear sentiment often creates a liquidity grab, where market makers exploit panic selling to fill order blocks, as analyzed in recent liquidity grab events triggered by macroeconomic shocks.

By The Numbers

Why It Matters

This analysis matters because it frames the market's transition from a retail-driven hype cycle to an institutionally curated . The altcoin wipeout prediction a critical portfolio risk: non-Bitcoin assets face existential threats without proven utility. Institutional focus on infrastructure and RWA, as noted by Grachev, aligns with regulatory guidance from bodies like the U.S. Securities and Exchange Commission (SEC), which emphasizes tangible asset backing.

Consequently, market participants must differentiate between speculative tokens and protocol-layer investments. The survival of projects with real-world integration, such as those in prediction markets securing funding amid fear, as seen in Opinion Labs' recent $20M Series A, validates this trend. This shift reduces systemic risk by filtering out low-liquidity, high-volatility assets.

Expert Commentary

"Market bottoms are not defined by price alone but by capital flow reallocation. The current Extreme Fear reading, coupled with professional investment into infrastructure, mirrors historical accumulation phases. Altcoin contraction is a natural market-clearing mechanism that strengthens the ecosystem's foundational layer." – CoinMarketBuzz Intelligence Desk

Market Outlook & Price Scenarios

Based on Grachev's volatility forecast and current technicals, two primary scenarios emerge. First, a bullish invalidation requires Bitcoin to reclaim and hold above the $75,000 resistance, confirming a trend reversal. Second, a bearish invalidation occurs if Bitcoin breaks and closes below the $68,500 Fibonacci support, potentially triggering a deeper correction toward $65,000.

• Bullish Invalidation Level: $75,000. A sustained break above this level, accompanied by rising on-chain activity, would negate the bear cycle thesis and signal early accumulation.
• Bearish Invalidation Level: $68,500. A weekly close below this Fibonacci support and volume profile node would invalidate the current structure, indicating further downside toward the 200-week moving average.

The 12-month institutional outlook hinges on infrastructure deployment and RWA adoption. If Grachev's projection holds, the market will see reduced altcoin count but increased capital efficiency, supporting a 5-year horizon focused on scalable, regulated crypto products. This aligns with accumulation trends in assets like XRP, where short-term holders accumulated $2.88B in two days amid similar fear conditions.