Bitcoin Hits $60,000 Floor as "Crypto Winter" Fears Erase All Post-Election Gains
Price tests 2024 support levels as over $2.6 billion in leveraged positions are wiped out in a week-long bloodbath.
The Price Movement and Structural Context
Bitcoin is attempting to hold the $60,000 level as of February 6, 2026, following a severe 48-hour sell-off that effectively reset the market to 2024 levels. The slide has officially wiped out every dollar of growth catalyzed by the November 2024 election.
The token hit an all-time high of $126,080 on October 6, 2025, according to The Block's data. It's down roughly 30% in the past month from a recent high of $108,000. The election was viewed as a positive event for crypto. The winning candidate embraced the sector during the campaign. Bitcoin traded sideways in the mid-$80,000s between February and March 2025 before the run to all-time highs.
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The Supply Economics and Holder Pain
Forty-four percent of the bitcoin supply is now "underwater," according to Sean Rose, an account manager at Glassnode. That means 44% of all Bitcoin was purchased at prices significantly higher than today's levels.
The "supply in profit" dropped to 56% from 78%. Rose notes that "top buyers near the ATH are now holding at a loss." He added that "concentrated supply with cost basis near recent highs is being tested." Weak hands may keep selling. Investors' "conviction and patience will be tested in the coming weeks and months."
In construction terms, 44% of your material was purchased at the wrong price. The project economics don't work at current valuations. Anyone who bought high has two options. Average down by adding more capital. Or cut losses by selling at a loss. There's no middle path when you're carrying inventory purchased 42% above current market rates.
The Liquidation Cascade and Leverage Mechanics
This week's deleveraging has been historic. Total liquidations have now surpassed $2.6 billion, with a single Ether position alone accounting for roughly $220 million in losses. Analysts are calling the current volatility a 'necessary flush' of the leverage that ballooned during the late 2025 rally. The Relative Strength Index (RSI), which measures momentum, has plummeted into rare oversold territory near 22.
The last time RSI reached this low was near the 2022 bear-market bottom. Bitcoin fell another 20% after that. A similar move from here would push the price through the $60,000 floor toward the mid-$50,000s.
The $663 million in liquidations means that much borrowed money just got wiped out. Those weren't cash purchases. Those were leveraged bets that went wrong. When leverage unwinds this quickly, it triggers forced selling that pushes prices lower, which in turn triggers more liquidations, which creates more selling. It's a cascade.
The Broader Market Context
Ether dropped by more than 9% to below $2,200. Solana fell over 7% to below $100. XRP is down 6.6% to about $1.52. Canton was the biggest loser in the top 25 tokens, down over 10% to around $0.17.
The Nasdaq Composite dropped 2.2% on Tuesday. Coinbase stock fell over 6%. Strategy, a bitcoin-focused company, dropped over 8%. There's lingering macroeconomic uncertainty following the brief but jarring four-day partial government shutdown that ended earlier this week on February 3rd. While the government has reopened, the political friction in Washington — and a looming deadline for DHS funding — has left investors on edge.
Despite the carnage, Monday showed a brief reprieve. Spot bitcoin ETFs posted $561.9 million in net inflows, reversing two straight weeks of selling. But between January 26 and 30, Bitcoin and Ethereum ETFs saw heavy redemptions totaling roughly $1.5 billion and $327 million, respectively.
Some altcoin products did see money flow in. Solana and XRP exchange-traded products got net inflows. A Bitfinex analyst called this a "tactical rotation from large-cap crypto assets into select smaller-cap exposures."
What this shows is a contradiction. Retail might buy through ETFs on Monday, with $561 million in inflows. But by Tuesday, $663 million in leveraged positions are getting liquidated. That's not a healthy market. That's a market where different participants are making opposite bets at the same time. One group thinks it's a buying opportunity. Another group is getting forced out because they can't meet margin requirements.
The Weekend Outlook: Capitulation or Support?
The market has reached a critical inflection point. With the RSI at its lowest level since the 2022 collapse, the $60,000 zone is no longer just a target — it is the line in the sand. If this floor gives way over the weekend, the next structural support doesn't appear until the mid-$50,000 range.
