Current Cryptocurrency News as of February 3, 2026: Bitcoin Holds Key Level After Deep Correction, Altcoins Trade at Multi-Month Lows, Institutional Investors Capitalize on Dip for Long-Term Purchases, Overview of Top 10 Cryptocurrencies, and Market Outlook.
As of the morning of February 3, 2026, the global cryptocurrency market remains tense, yet there are initial signs of stabilization following a recent sell-off. Bitcoin (BTC) attempted to find a local bottom near the psychologically significant level of $75,000, rebounding from these levels. The leading cryptocurrency is currently consolidating around $78,000 to $80,000, having lost approximately 35% from its historical peak of nearly $125,000 in October 2025. The total market capitalization of cryptocurrencies has dipped below $3 trillion (down from peak values of over $4 trillion in the fall), reflecting a capital outflow from risk assets in the context of global economic uncertainty. Major altcoins from the top 10 are also trading at multi-month lows, down 30-50% from recent highs. Investor sentiment is cautious, with the fear and greed index firmly in the "fear" zone, contrasting sharply with the euphoria experienced just months ago. Nonetheless, some major players are seizing the current dip as an entry opportunity, anticipating long-term growth in the sector.
Market Overview: Seeking Stabilization After the Sell-Off
At the end of 2025, the cryptocurrency market was surging, but at the beginning of 2026, the trend reversed sharply. A combination of harsh external conditions—from tightening monetary policy to geopolitical risks—has led to a diminished risk appetite among global investors. January 2026 turned out to be the toughest month in recent times, with the combined market capitalization of cryptocurrencies shrinking by approximately a quarter from peak levels. Trading activity has shifted towards stablecoins, as many traders temporarily moved funds into these "digital dollars" to preserve capital. As February begins, sentiment remains cautious—market participants await clarity on the macroeconomic situation and regulatory measures before resuming active purchases of crypto assets. Nevertheless, after the sharp declines of recent weeks, a stabilization attempt appears to be underway: the rate of price declines has slowed, and the most resilient coins are striving to hold critical support levels.
Bitcoin: At Key Support After Annual Low
In recent days, Bitcoin (BTC) dropped to its lowest level since spring 2025, briefly piercing the ~$75,000 mark. This price has become a new local minimum following last year's record rally. Compared to the October peak (~$125,000), Bitcoin has decreased by roughly 35-40%, partially due to a mass profit-taking by early investors and diminished market liquidity during the festive season. However, the price has held above ~$75,000: at the beginning of the week, BTC rebounded and is currently trading around $78,000 to $80,000, close to a crucial support zone. Bitcoin’s market capitalization still exceeds $1.8 trillion, dominating approximately 60% of the entire crypto market. Experts note that even after the correction, the flagship cryptocurrency remains one of the largest financial assets in the world, and long-term holders ("whales") are largely reluctant to sell their coins. They view Bitcoin as a strategic reserve and an analog to "digital gold." Moreover, several public companies have expressed intentions to leverage the price drop: for instance, the fintech holding company Strategy (formerly known as MicroStrategy) reported purchasing an additional ~855 BTC for $75 million at the end of January. Despite the average purchase price (~$88,000 per BTC) exceeding the current rate, the company demonstrates confidence in Bitcoin’s long-term value and plans to hold and increase its crypto reserves. Such interest from "big players" supports market belief in the solid fundamentals of BTC, even if short-term volatility remains high.
Ethereum: Price Pressure and Strong Fundamentals
The second-largest cryptocurrency, Ethereum (ETH), is also experiencing a prolonged price decline. Since the fall of 2025, ETH has lost nearly half of its peak value (~$5,000) and recently dropped below $2,300. During the sell-off in January, Ethereum lost more than 10% in a single day, with waves of forced liquidations on derivative exchanges exacerbating the declines. ETH is currently fluctuating around ~$2,400 to $2,500, significantly below its historical maximum; however, Ethereum continues to play a key role in the crypto industry. The network is progressing successfully: in January, a technical hard fork aimed at improving the scalability and efficiency of the blockchain was implemented. Additionally, the use of Layer-2 solutions, which reduce strain on the main network and lower fees, is on the rise. A substantial portion of the total ETH issuance remains staked or held long-term, limiting the supply of coins on the market. While institutional interest in Ethereum has decreased amid the overall correction, it remains significant: in 2025, the first ETH ETFs emerged in the U.S., attracting billions in investments. Large funds and financial companies still include ETH in their long-term crypto portfolios alongside Bitcoin, reflecting Ethereum's fundamental importance to the DeFi, NFT ecosystems, and various dApps. Therefore, despite temporary price pressure, the fundamental indicators of the ETH network remain robust, instilling optimism regarding its long-term prospects.
Altcoins: Sell-Off and Capital Redistribution
The broader altcoin market has come under significant pressure, becoming the epicenter of the recent sell-off. Many previously rapidly appreciating tokens, especially some top altcoins, have lost a substantial part of their value at the beginning of 2026 as investors reduce their riskiest positions. Capital is flowing from highly volatile alternative coins into more stable assets or even leaving the crypto market altogether, as evidenced by the increasing share of stablecoins and the strengthening dominance of Bitcoin. BTC's share of the total market capitalization has again exceeded 60%, indicating a shift of some funds from altcoins to the flagship asset.
Recently, investors focused on coins like XRP, Solana, and BNB, which exhibited impressive growth on positive news. For instance, XRP (Ripple) surged to ~$3 last summer after a significant legal victory for Ripple in the U.S., re-establishing itself as a market leader. However, by early February, XRP retreated to about half of that peak, trading around $1.50, following the general downward trend. Solana (SOL) has shown a similar pattern: after an impressive spike above $200 in the fall of 2025 amid ecosystem recovery, SOL also corrected and is now trading just above $100, still significantly higher than the lows of the previous year. The Binance Coin (BNB), despite prolonged regulatory risks surrounding the Binance exchange, remained relatively resilient until recently, even reaching a record ~$880 in 2025; however, since early January, it has dropped to ~$500 due to the overall market downturn.
Other major altcoins in the top ten—such as Cardano (ADA), Dogecoin (DOGE), and Tron (TRX)—are also under pressure and trading significantly below their peak levels. Nevertheless, they maintain positions within the top 10 due to still substantial market capitalization and community support. In conditions of heightened uncertainty, many market participants prefer to weather the turbulence in stablecoins (USDT, USDC, etc.) or Bitcoin. This limits the influx of new capital into the altcoin segment until there is further clarity on the overall situation. In the future, renewed interest in altcoins may be possible if Bitcoin stabilizes and risk appetite increases; however, in the near term, caution prevails, favoring the most reliable digital assets.
Regulation: Global Move Toward Clear Rules
Globally, regulatory bodies have intensified efforts to devise rules for the cryptocurrency industry in the wake of its rapid growth. **Key regulatory directions as of early 2026:**
- U.S.: The administration is advancing a comprehensive digital asset legislation (Digital Asset Market Clarity Act) aimed at clearly defining the jurisdiction of regulators (SEC and CFTC) and establishing clear rules for market participants. Among the initiatives, requirements for 100% collateralization of stablecoins are being discussed to enhance transparency and trust in digital dollar tokens. Although the consideration of this bill in Congress has stalled due to disagreements (e.g., regarding yield in DeFi), it is expected that work will resume in the coming months, given strong federal support. Meanwhile, U.S. financial regulators are continuing oversight through targeted measures: at the end of 2025, the SEC actively cracked down on fraudulent schemes (such as pyramid schemes disguised as AI investments), and court precedents like Ripple’s victory regarding XRP are gradually clarifying the legal status of key crypto assets.
- Europe: Since January, the EU has implemented a unified MiCA regulation, establishing transparent rules for the circulation of crypto assets across all EU countries. The introduction of a cryptocurrency tax reporting standard (DAC8) is also on the horizon—new rules, effective in 2026, will require companies to report users’ transactions to combat tax evasion. These measures are intended to standardize oversight and reduce legal uncertainty for businesses and investors in the European crypto market.
- Asia: Regulators in Asian financial centers are striving to find a balance between control and attracting innovation. For example, Japan plans to ease the tax burden on cryptocurrency transactions (potentially reducing the trading tax rate to around 20%) and is also considering launching the first crypto ETFs to reinforce the country’s position as a progressive hub for digital assets. In Singapore, Hong Kong, and the UAE, licensing regimes for crypto exchanges and blockchain projects are being introduced—thus, authorities are trying to attract tech companies while also ensuring investor protection. The overall global trend is moving away from outright bans and fragmented regulatory actions towards integrating the crypto market into the existing financial system through clear regulations and licensing. As clearer and unified rules emerge, the trust of large institutional players in the crypto industry is expected to grow, which will benefit the market in the long run.
Institutional Trends: Cautious Pause and Targeted Purchases
Following a record influx of institutional capital into crypto funds in 2025, the beginning of 2026 has been marked by a pause. The sharp increase in market volatility has resulted in a temporary outflow of funds from several crypto ETFs and trusts: funds partially secured profits and reduced risks while awaiting stabilization. According to analytical firms, over $1 billion has been withdrawn from U.S. Bitcoin spot ETFs in recent weeks, with significant outflows also observed from Ethereum funds. These figures underscore the heightened caution among "smart money"—large investors and managers—who have opted to decrease exposure to crypto assets amid the market downturn.
At the same time, strategic interest in digital assets has not disappeared. Major players are not abandoning long-term plans in the cryptocurrency sector. In January, the exchange operator Nasdaq lifted position size restrictions on options for crypto ETFs, equating their conditions to those of regular commodity ETFs—this move expands hedging options for institutional traders and indicates further integration of crypto products into traditional markets. Public companies holding cryptocurrencies are also maintaining their positions despite the decline in prices. One of the largest corporate holders of Bitcoin, as mentioned earlier, the holding company Strategy, has made it clear that it maintains long-term confidence in BTC and is prepared to increase its reserves during price drops. The company's management hinted that current levels are close to the average cost basis of its Bitcoin portfolio (~$76,000 per BTC) and are considered attractive for additional purchases. Overall, many institutional investors currently occupy a wait-and-see position: while some have reduced their allocation to crypto assets in the short term, strategic initiatives (developing infrastructure, launching new products, investing in crypto startups) are ongoing. As macroeconomic conditions improve and regulatory rules become clearer, large financial players may accelerate their accumulation of cryptocurrency investments.
Macroeconomics: Tight Policy and Flight to Safe Assets
The macroeconomic backdrop at the beginning of 2026 remains challenging for risk assets, which directly affects the cryptocurrency market. In the U.S., leadership at the Federal Reserve has changed: Kevin Warsh, known for his commitment to stricter monetary policy, has emerged as the new candidate for the Fed chair. Expectations of sustained high interest rates and potential balance sheet reductions at the Fed have heightened investors' fears, as the excess liquidity that previously fueled the cryptocurrency rally has been under threat. At the Fed's January meeting, the key interest rate was left unchanged (3.5–3.75%); however, the regulator's rhetoric remains "hawkish," indicating a willingness to curb inflation by any means. This has led to increased capital outflows from risk assets into safer ones.
The political climate has added to the negative backdrop. By the end of January, a threat of a government shutdown emerged in the U.S. over budgetary disputes. Although Congress managed to reach a temporary agreement at the last minute and avoid a shutdown, the mere possibility of such development heightened market nervosity. At the same time, trade risks escalated: the administration of President Donald Trump threatened to impose new tariffs on several countries (including NAFTA and EU partners)—there were even ultimatums regarding Greenland, which put transatlantic relations on the brink of a trade war. In Asia, economic signals have also raised concerns: in Japan, a spike in government bond yields to multi-year highs at the start of the year destabilized the local market and triggered a part of global liquidity to flow out of risky instruments. All these events initiated a classic "flight to quality" mechanism—investors fleeing to high-quality, safe assets.
Prices of precious metals continue to set records amid heightened demand. Gold on the global market exceeded $5,000 per troy ounce, breaking historic highs, while the U.S. dollar index (DXY) has strengthened significantly. As a result, Bitcoin and other crypto assets temporarily lost status as "digital gold" in the eyes of some investors, who opted to shift capital into traditional safe havens in times of uncertainty. In the short term, favored instruments shifted from cryptocurrencies to highly liquid tools – government bonds, the dollar, and gold. However, as the macroeconomic situation begins to clarify (for example, if the Fed signals a policy easing or if geopolitical tensions decrease), interest in the crypto market is likely to recover. Historically, cryptocurrencies have repeatedly demonstrated their ability to rebound sharply after periods of turbulence, especially when external threats recede and global risk appetite returns.
Top 10 Most Popular Cryptocurrencies
The current top ten cryptocurrencies by market capitalization are as follows:
- Bitcoin (BTC) – the first and largest cryptocurrency, dominating ~60% of the market. BTC is trading around $80,000 after a recent correction, remaining a primary "digital gold" and core of crypto portfolios for many investors.
- Ethereum (ETH) – the second-largest crypto asset and leading smart contract platform. The current price of ETH is around $2,400; it underpins the DeFi, NFT ecosystems, and numerous dApps, maintaining its critical importance to the industry.
- Tether (USDT) – the largest stablecoin pegged to the U.S. dollar on a 1:1 basis. USDT is widely used for trading and capital storage, ensuring liquidity in the market; its capitalization of around $80 billion reflects its demand in the ecosystem.
- Binance Coin (BNB) – the native token of the global cryptocurrency exchange Binance and the BNB Chain. It provides discounts on transaction fees and serves as fuel for DeFi applications. The price of BNB after correction is around $500; despite regulatory pressure, the coin remains in the top 5 due to its wide applicability.
- XRP (Ripple) – the token of the Ripple payment network for fast cross-border transfers. XRP trades around $1.50 (approximately half its multi-year high); thanks to legal clarity in the U.S. and interest from funds, XRP maintains its position among the largest cryptocurrencies.
- USD Coin (USDC) – the second most popular stablecoin from Circle, fully backed by dollar reserves. USDC is known for its transparency and regulatory compliance; it is widely used in trading and DeFi (capitalization around $30 billion).
- Solana (SOL) – a high-performance blockchain platform known for low fees and transaction speed. SOL reached >$200 in 2025, capturing investors' attention; currently, the coin is trading at about half that price (just above $100) after market correction, remaining one of the leading protocols for DeFi and Web3.
- Cardano (ADA) – the cryptocurrency of the Cardano platform, developing with an academic approach. ADA maintains its top 10 position due to significant market capitalization and an active community, even though its price (~$0.50) is significantly below historical highs. The project continues its technical upgrades, solidifying its foundation for future growth.
- Dogecoin (DOGE) – the most well-known "meme" cryptocurrency that started as a joke but became a mass phenomenon. DOGE hovers around $0.10; the coin is supported by a loyal community and occasional celebrity attention. Despite increased volatility, Dogecoin remains among the ten largest coins, demonstrating remarkable resilience of interest.
- Tron (TRX) – the token of the Tron blockchain platform, focused on decentralized applications and digital content. TRX (~$0.25) is in demand for producing and transferring stablecoins (a significant portion of USDT circulates in the Tron network due to low fees), helping it maintain its position in the top 10 alongside other market leaders.
Outlook and Expectations
In the short term, sentiment in the cryptocurrency market remains uncertain and predominantly negative. The fear and greed index, having fallen into the fear zone, indicates a prevalence of cautious sentiment among investors. Analysts warn that as long as macroeconomic risks persist, price corrections may continue: some experts project potential declines of Bitcoin to $70,000 to $75,000 if current support levels are breached. The heightened volatility of recent weeks and waves of forced liquidations of margin positions serve as a reminder of the necessity for strict risk management when dealing with crypto assets.
Nonetheless, medium- and long-term prospects for the sector are viewed positively by many specialists. Each phase of decline previously led to a "cleansing" of the market from excessive speculative capital and laid the groundwork for a new growth phase. The industry continues to experience technological development: new projects are emerging, infrastructure is being improved, and traditional financial institutions are increasingly integrating blockchain solutions. Major global companies have not lost interest in cryptocurrencies—instead, they view the current pullback as an opportunity to strengthen their positions. Historically, after periods of rapid growth (like in 2025), phases of cooling and price consolidation often precede the market resuming its upward trend.
Fundamental drivers of demand for cryptocurrencies remain strong: mass adoption of distributed ledger technologies, growth in decentralized finance, and development in Web3 continue irrespective of short-term price fluctuations. Several investment firms maintain ambitious long-term forecasts. For instance, improving macroeconomic conditions could enable Bitcoin to not only surpass the psychological barrier of $100,000 again but also establish new records within the next 1-2 years. Of course, much will depend on the actions of regulators and central banks: if the Federal Reserve transitions to a loosening of policy amid declining inflation, and new laws eliminate legal ambiguities, capital inflow into the crypto market could significantly accelerate. For now, investors are advised to maintain a balance between caution and strategic vision, remembering that high volatility is an inherent aspect of cryptocurrency market development. With a measured approach, the current correction may open up new opportunities for long-term investments in digital assets, which will continue to play an increasingly prominent role in the global financial system.
