Crypto News Today, February 6: Supercycle They Say! Sentiment Hit Rock Bottom, BTC USD Touched $60K, ETH Under $2K

[Ben Graham]

Supercycle narrative, once treated like gospel, took a serious hit as BTC USD slid all the way to $60,000 and ETH USD cracked below $2,000. Is this just another brutal shakeout or the moment the supercycle myth finally broke? Either way, BTC USD and ETH USD are now inseparable from rock bottom sentiment.

Crypto Fear and Greed Chart

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What made us feel the selloff sting is that we just don’t know where the fire comes from. No surprise rate hike, no exchange collapse, no overnight regulation hammer. The total crypto market cap just somehow dropped to $2.3 trillion after a sharp 7% daily decline, almost half of $4,2 trillion top.

More than $2.6 billion vanished in a single day, with realized Bitcoin losses hitting past black swan events. Long positions worth over $2.1 billion were erased; it was just a brutal bloodbath. Nobel laureate Paul Krugman called it a “crisis of faith” as both ETH and BTC don’t respect narratives. The supercycle debate becomes emotional before it becomes analytical in a cycle low condition.

If this is a supercycle, it’s not the smooth, up-only version people sold on podcasts. If.

(source – Coinglass)

Supercycle Stress Test for BTC USD and ETH USD

Strategy CEO Phong Le said that BTC USD would need to collapse to $8K and stay there for years to truly threaten corporate balance sheets. At the same time, $4.3 billion in Bitcoin flowed out on Binance in just two days, more than any other exchange, even as on-chain data showed long-term holders barely moving.

Phong Le: #Strategy’s balance sheet remains resilient, and #BTC would need to fall to $8K for years to threaten its convertible debt. pic.twitter.com/8blEcLbYHL

— Coinpaper (@coinpapercom) February 6, 2026

The market has shed nearly $1 trillion since mid-January, with analysts now openly floating USD 40K scenarios for BTC, just as bears hold the momentum. ETH USD, meanwhile, continues to wrestle with its own identity crisis as Layer-2 drama and ecosystem politics muddy the waters. The supercycle is limping if it exists.

Although beneath the noise, adoption headlines didn’t stop. Russia’s Sberbank is preparing crypto-backed loans for corporates. Binance’s CZ keeps pushing the idea that every national currency belongs on-chain. Coinbase’s Brian Armstrong compared crypto and AI to “siamese twins” of applied math, destined to reconnect. Builders building while prices bleed.

There are reports that Sovcombank has discussed potential crypto-backed lending, especially for miners, under Russia’s evolving regulatory framework – but there’s no official launch yet.

Separately, Sberbank has piloted a Bitcoin-backed corporate loan. pic.twitter.com/sFxYDmUsj0

— CryptoPotato Official (@Crypto_Potato) February 5, 2026

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Reality Check: Is it Checking?

From a technical standpoint, BTC USD breaking from $70K and tagging $60K pushed momentum indicators into extreme territory. Daily RSI dipped near 22, a range lower than that of “Covid Crash”. A good rebound could target the $75K zone if volume helps the course, but failure here opens the door to $40K based on Fibonacci retracements from October highs. The 200-day moving average is saying that $55K is the line to watch.

Market Cap

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ETH USD looks equally tense as it’s slipping under $2K, completing a descending triangle, with $2.2K now acting as stubborn resistance. MACD remains bearish, but stochastic indicators are starting to diverge, hinting at a relief bounce. A push toward $2.5K isn’t impossible, yet a clean break below $1.8K would likely drag ETH toward $1.5K. So it comes down to whether the supercycle is really going to go again.

Market Cap

24h 7d 30d 1y All Time

Total crypto market cap excluding BTC and ETH USD is down by 16% this week, while DeFi TVL slid to $93 billion, losing 7%. Sentiment gauges are deep in extreme fear. However, it is somewhat bullish as it shows that most retail has already left the room.

As this week closes, remind ourselves that every cycle feels like the end when you’re holding. Whether the supercycle survives, BTC USD and ETH USD have reached levels where patience pays in many instances. The fire looks scary up close, but step back and look how beautiful it is from afar.

For me, I’ll be singing “Have a Cigar” for Bitcoin

Come in here, dear boy, have a cigar, you’re gonna go far.
You’re gonna fly, you’re never gonna die.
And did we tell you the name of the game, boy?
We call it riding the gravy train.

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The post Crypto News Today, February 6: Supercycle They Say! Sentiment Hit Rock Bottom, BTC USD Touched $60K, ETH Under $2K appeared first on 99Bitcoins.