Crypto News Today, February 6: Supercycle They Say! Sentiment Hits Rock Bottom, BTC USD Touches $60K, ETH Under $2K
The Supercycle narrative, once treated as gospel, took a major hit as BTC USD slid to $60,000 and ETH USD fell below $2,000. Is this just another brutal shakeout or is the myth of the supercycle finally broken? In any case, BTC USD and ETH USD are now inseparable on the downside.
Crypto Chart of Fear and Greed
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What made us feel the selloff sting is that we just don’t know where the fire is coming from. No surprise rate hikes, no exchange rate crashes, no overnight regulatory hammer. The total value of the crypto market fell somewhat to $ 2.3 trillion after a sharp decline of 7% daily, almost half of the 4.2 trillion high.
More than $2.6 billion disappeared in a single day, with Bitcoin’s notable losses hitting past black swan events. Long positions worth more than $2.1 billion were wiped out; it was just brutal bloodshed. Nobel laureate Paul Krugman called it a “crisis of faith” as both ETH and BTC are not honoring the narrative. The argument for the supercycle becomes emotional before it becomes analytical in the lower case of the cycle.
If this is a supercycle, it’s not the smooth, high-quality version only people sell on podcasts. If.
(source – Coinglass)
Supercycle Stress Test for BTC USD and ETH USD
Strategy CEO Phong Le said BTC USD would need to fall to $8K and stay there for years to really threaten corporate balance sheets. At the same time, 4.3 billion dollars in Binance left Binance in just two days, more than any other exchange, as on-chain data showed long-term holders are not moving much.
Phong Le: #IsuThe balance sheet remains strong, too #BTC it will need to drop to $8K years to cover 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 opening USD 40K positions for BTC, even as bears gain momentum. ETH USD, meanwhile, continues to struggle with an identity crisis as Layer-2 drama and ecosystem politics muddy the waters. A supercycle is lame if there is one.
Although less noise, the headlines of the acquisition did not stop. Russia’s Sberbank is preparing crypto-backed loans for corporates. Binance’s CZ continues to push the idea that all national currencies are on-chain. Coinbase’s Brian Armstrong compared crypto and AI to the “twins of knives” in applied mathematics, which are meant to reconnect. Builders build while prices bleed.
There are reports that Sovcombank has discussed crypto-backed lending, particularly to miners, under Russia’s evolving regulatory framework – but there has been no official launch yet.
Separately, Sberbank has explored a Bitcoin-backed corporate loan. pic.twitter.com/sFxYDmUsj0
– CryptoPotato Official (@Crypto_Potato) February 5, 2026
DISCOVER: 10+ Next Crypto to 100X By 2026
Reality Checks: Does It Check?
From a technical point of view, BTC USD breaking out of $70K and marking $60K has pushed the momentum indicators into extreme territory. The daily RSI has dropped to around 22, a range lower than that of the “Covid Crash”. A good rebound could point to the $75K area if volume helps the course, but a failure here opens the door to $40K based on the Fibonacci retracement from the October high. The 200 day moving average at $55K is a line to watch.
ETH USD looks similarly bullish as it drops below $2K, completing a descending triangle, with $2.2K now acting as stubborn resistance. The MACD remains bearish, but the stochastic indicators are starting to diverge, pointing to a relief jump. A push to $2.5K is unlikely, but a clean break below $1.8K could drag ETH to $1.5K. So it depends on whether the supercycle will really go again.
The total crypto market capitalization excluding BTC and ETH USD fell 16% this week, while DeFi TVL fell to $93 billion, a 7% loss. The emotional scales are deep with great fear. However, it is somewhat bullish as it shows that many traders have already left the room.
As this week draws to a close, let’s remind ourselves that every cycle feels like an ending when you catch it. As the supercycle survives, BTC USD and ETH USD have reached levels where patience pays off in many cases. Fire looks scary up close, but step back and look at how beautiful it is from a distance.
For me, I’ll be singing “Have a Cigar” for Bitcoin
Come in here, dear boy, take a cigar, you’ll go far.
You will fly, you will never die.
And did we tell you the name of the game, boy?
We call it riding the gravy train.
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