The Bleeding Continues : BTC at $60k

DAILY MARKET OVERVIEW

Bitcoin touches $60k

👋 Hey, Crypto Enthusiasts! The selloff isn't over, so let's talk about what happens next.

Bitcoin briefly touched $60k yesterday before bouncing back towards $70k. It's just a reactionary move after falling so hard, nothing more.

We previously highlighted $60k-$70k as the value zone, but with how violent the sell pressure has been, we may need to visit even lower levels to find a true bottom. This process could take months, so brace yourselves for choppy, frustrating price action.

Will Strategy and Miners Be Forced to Sell ⁉️ 

Strategy owns over 700,000 Bitcoin. When BTC's price dropped, the value of their holdings fell sharply, leading to a massive reported quarterly loss of about $12.6 billion.

This is mostly a paper loss. They haven't sold their Bitcoin.

Will they be forced to sell?
According to CEO Michael Saylor, no, not at current prices. He stated that real financial trouble would only begin if Bitcoin falls to around $8,000 and stays there for years. At today's prices (around $60k), their balance sheet remains safe.

Overall the headline looks scary, but there's no forced selling happening right now. Strategy plans to hold long term and ride out the volatility.

Miners Feel the Pain ⛏️ 

Bitcoin's drop below $65k is putting serious pressure on miners. At these levels, many modern mining machines aren't profitable with normal electricity costs.

What happens if prices stay low:

• Miners are forced to sell Bitcoin to pay bills (electricity, hosting)

• More selling pressure pushes prices lower

• Inefficient miners shut down machines, causing hashrate to drop

• This creates a negative feedback loop: lower prices → more selling → more shutdowns

Bitcoin's network has a built-in fix. Every two weeks, the network automatically adjusts mining difficulty. When hashrate falls, mining becomes easier and cheaper for those who remain, reducing selling pressure and bringing balance back.

Historically, these "miner pain" periods often mark market bottoms, with strong returns in the months that follow. It feels brutal now, but this phase is typically part of how the market resets for recovery.

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SOCIAL SENTIMENT

No Buyers Left.. What Traders Are Doing Instead

With the crypto market bleeding and treasury companies deep underwater, everyone's asking: Who's the next buyer?

For now, the answer is no one. Until conditions stabilize, major buyers are staying away.

The Pair Trading Strategy 🍐 

While some traders sit entirely on the sidelines, others are running pair trades: longing coins expected to outperform while shorting those expected to underperform. This creates downside protection through the short and upside potential if the market rallies.

The current play:

• Long: Revenue-generating coins like Hyperliquid and Pump.fun

• Short: Non-revenue, high-emission coins like Solana, Sui, and Arbitrum

Why it's working: Hyperliquid's revenue skyrocketed to nearly $7M in a single day yesterday due to extreme volatility leading to more buybacks. This has driven outperformance compared to other assets.

Our Strategy?

We're staying on the sidelines, waiting for clearer opportunities to scoop and hold for the longer term. Patience wins in markets like these.

NEWS OVERVIEW

The Latest Crypto Headlines 📰 

Sen. Lummis Urges Banks to Embrace Stablecoins
Senator Cynthia Lummis said U.S. banks should adopt stablecoins and digital assets as crypto legislation stalls over yield provisions.

Pump.fun Acquires Vyper to Expand Cross-Chain Trading
Pump.fun acquired trading terminal Vyper to strengthen its cross-chain execution and expand EVM support within its Terminal platform.

Bitwise Files for Uniswap ETF With SEC
Bitwise filed a registration statement for a Uniswap-focused ETF, marking the first attempt to bring UNI exposure to U.S. markets.

Tether Invests $150M in Gold.com
Tether deepened its gold strategy with a $150 million investment in Gold.com, linking physical bullion with digital stablecoin infrastructure.

YOUTUBE INFLUENCER SUMMARY

Summary From The Top Influencers 📷️ 

Benjamin Cowen – Bitcoin Down 50% From The Highs (06.02.2026 Summary)

Cowen says the selloff is accelerating fast, with Bitcoin now down about 50% from the October 2025 peak and trading around the low $60Ks. His main point is that this is exactly why trying to time “counter-trend rallies” is risky, because the market can drop hard before any bounce shows up.

What he thinks is happening

• He compares this to past bear markets (2018, 2022) where Bitcoin eventually put in a sharp capitulation low, bounced, then chopped sideways for months before another leg down.

• The next major level on his radar is the 200-week moving average, which he calls Bitcoin’s “date with destiny” in bear markets. He notes it’s around the high $50Ks and BTC is getting there much faster than usual.

• Because the drop is happening quicker than prior cycles, he’s less confident about timing, but still leans toward a larger cycle low later in the year. His “most likely” window is May to October, with a preference for October, and May as a backup if the market keeps cascading.

Altcoins and “risk-off”

• He says altcoins are getting wrecked again, many round-tripping to old lows, and argues they’ve been bleeding versus safer assets for years.

• He also repeats his view that gold is the better metal vs silver in this environment, and that “flight to safety” looks more like Bitcoin plus stablecoins rather than alts.

Takeaway

Cowen’s outlook stays bearish: he expects a capitulation-style low soonish that could hold for a while, but he still thinks the bigger bottom is more likely later (May–October). Any bounce, in his view, is likely to be a trap that turns into a macro lower high before the bear market is truly done.

Paul Barron Network – Crypto CLARITY Act Deadline Sparks Panic Sell-Off! (06.02.2026 Summary)

In this video, Paul Barron argues that the latest sell-off isn’t really about prices, it’s about fear around US regulation, especially the Clarity Act. As deadlines approach and political tension rises, uncertainty is pushing investors to panic.

Key points

• The market is reacting to confusion around the Clarity Act and stablecoin rules. Investors don’t know what the final regulations will look like, and uncertainty is driving selling.

• Banks are pushing back hard. Barron says traditional banks see crypto, especially stablecoins, as a direct threat to deposits and are using lobbying power to slow things down.

• Despite the noise, he believes regulation is still coming. People like Mike Novogratz think lawmakers are too invested to let the bill fail completely.

• Barron compares this moment to when free stock trading disrupted Wall Street. Once a better, cheaper system appeared, old players had to adapt or lose. He believes crypto is doing the same to banking.

• He expects crypto-friendly platforms like Robinhood to keep expanding into banking services, increasing pressure on traditional banks.

• Barron also sees AI as a long-term driver for crypto adoption. AI tools could manage wallets, payments, and DeFi automatically, making crypto easier for everyday users.

Takeaway

Barron’s view is that this sell-off is driven by fear and politics, not fundamentals. Regulation and innovation are still moving forward, and once uncertainty clears, the market could stabilize.

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