Berachain faces Feb 6th deadline – Will Nova refund trigger a crash?

Berachain [BERA] was seizing attention and capital flows recently.

Over the past 24 hours, the DeFi liquidity-focused blockchain token has rallied 15.48% in the past 24 hours, and was up 62.58% in a week.

Why is BERA rallying?

The gains began on the 14th of January, when BERA prices were at $0.593 at the beginning of the day. The Berachain end-of-year update sent prices soaring after the introduction of the “Bera Builds Businesses” model.

This model illustrated the Berachain Foundation’s move towards cash flow.

As part of its bid to become an established blockchain, the chain will “internally build, acquire, or partner closely with a small set of businesses that directly create value” for the BERA token.

The threats ahead for investors

While this was exceedingly positive news for investors, some threats were lurking. Earlier in 2025, the Total Value Locked (TVL) on the chain had plunged from $3 billion. It was only $178 million at the time of writing, DeFiLlama data showed.

It also faced increased scrutiny after an investigation revealed it gave an institutional investor downside protection.

This is a rare, controversial provision that is generally not applicable in the industry to underperforming assets.

The deadline for the BERA refund clause for Brevan Howard’s Nova fund is the 6th of February, 2026. That is why the timing of the current rally is suspect.

Investors must DYOR and navigate the situation cautiously.

Source: BERA/USDT on TradingView

The 1-day chart showed that, even after the recent gains, BERA was down 69.64% from the $3.08 high it made in the first week of October. The structure on the 1-day timeframewas starting to turn bullish.

The RSI was above 60 to show strong bullish momentum and the OBV made new highs to reflect the heavy buying pressure recently.

This could continue to drive the rally higher, but holders and traders should consider taking profits.

Final Thoughts

• The Bera Builds Businesses model showed a turn toward real cash flow, such as internally building apps that generate revenue.
• The price action was firmly bullish recently, but the controversial Nova refund’s deadline was inching closer.