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

Core Viewpoint - The narrative of a supercycle in cryptocurrency has been significantly challenged as Bitcoin (BTC) and Ethereum (ETH) prices have dropped sharply, leading to a crisis of confidence in the market [1][3]. Market Performance - The total cryptocurrency market capitalization has decreased to $2.3 trillion, reflecting a 7% decline in a single day, nearly half of its peak at $4.2 trillion [2]. - Over $2.6 billion in value was lost in one day, with Bitcoin long positions worth over $2.1 billion being wiped out [3]. - The market has lost nearly $1 trillion since mid-January, with analysts suggesting potential scenarios for Bitcoin to drop to $40,000 [5]. Sentiment and Analysis - The current sentiment surrounding BTC and ETH is at a low point, with both cryptocurrencies not adhering to previous narratives [1][3]. - The debate over the supercycle has shifted from analytical to emotional, indicating a significant change in market psychology [3]. Technical Indicators - Bitcoin's price drop from $70,000 to $60,000 has pushed momentum indicators into extreme territory, with the daily RSI nearing 22, lower than during the "Covid Crash" [7]. - A rebound could target the $75,000 zone if trading volume supports it, but failure to maintain this level could lead to a drop to $40,000 based on Fibonacci retracements [7]. Adoption and Developments - Despite the market turmoil, there are ongoing developments in cryptocurrency adoption, such as Sberbank in Russia preparing to offer crypto-backed loans for corporates [6]. - Binance's CEO continues to advocate for the integration of national currencies on-chain, while Coinbase's CEO draws parallels between cryptocurrency and AI as interconnected fields [6].