Current Cryptocurrency News for Monday, February 2, 2026: Global Market Trends, Top 10 Cryptocurrency Dynamics, Institutional Interest, and Key Factors Influencing the Cryptocurrency Market.
As of the morning of February 2, 2026, the cryptocurrency market has retreated to multi-month lows following a significant sell-off in recent weeks. The price of Bitcoin hovers around $80,000 (down approximately a third from its record high of ~$120,000 achieved in October 2025), while Ethereum (ETH) has dropped to around $2,500 (almost half its peak last year of ~$5,000). The total capitalization of the crypto market, which recently exceeded $4 trillion, is now valued at less than $3 trillion, reflecting heightened caution among investors. Major altcoins have also sustained significant losses, with many coins in the top 10 falling 30-50% from recent highs. Market sentiment has cooled amidst unfavorable macroeconomic signals (the hawkish rhetoric from the U.S. Federal Reserve and threats of trade conflicts) and changes in the regulatory environment. These factors have triggered a temporary capital outflow from riskier digital assets in favor of traditional “safe havens” like gold.
Market Overview: Correction Amid Global Uncertainty
The last quarter of 2025 saw the crypto market at historical peaks, but since then, the dynamics have shifted to the opposite. Rapid tightening of external conditions has led to a diminished risk appetite among global investors. Following a series of records for Bitcoin and Ethereum last year, the price collapse in January 2026 has become the most serious test for the market in recent months. The total industry capitalization has decreased by about a quarter from peak values. Stablecoins have once again emerged as leaders in trading volume, as many traders temporarily moved their assets into stable investments. As February begins, cautious sentiment prevails in the market: participants are waiting for clarity on monetary policy and regulations before returning to active cryptocurrency buying.
Bitcoin: New Annual Low and Search for Support
Recently, Bitcoin (BTC) fell to its lowest level since last spring, breaching the $80,000 mark. Since the October record (~$120,000), BTC has depreciated by approximately 35%, partially due to profit-taking by early investors and a decline in market liquidity. A sharp dip on Friday – reaching ~$78,000 at its lowest – was triggered by the news of Kevin Warsh’s selection as head of the U.S. Federal Reserve: investors fear that his potentially hawkish monetary policy will lead to reduced liquidity. These concerns reminded the market of existing risks, intensifying the wave of selling.
Even with the correction, Bitcoin remains the largest crypto asset, dominating roughly 60% of the market's total capitalization and ranking among the largest financial assets in the world. Long-term BTC holders (“whales”) are largely in no rush to part with their coins, viewing Bitcoin as a strategic asset akin to “digital gold.” Furthermore, some large corporations holding BTC have indicated their intent to leverage the downturn to increase their reserves. This interest from “big players” supports the market and reinforces confidence that Bitcoin's fundamental value remains high despite short-term fluctuations.
Ethereum: Price Pressure Despite Upgrades
The second-largest cryptocurrency, Ethereum (ETH), is also experiencing significant declines. Over the past few months, ETH’s price has fallen roughly to half its peak value (~$5,000), dropping below $2,500. Last week, Ether experienced a sharp drop of over 10% in a single day – a wave of automatic liquidations on derivatives exchanges exacerbated the price decline. Despite this correction, Ethereum remains a key platform within the crypto ecosystem with an actively evolving technology.
In January, the Ethereum network successfully conducted another hard fork (protocol upgrade codenamed BPO), aimed at increasing the scalability and efficiency of the blockchain. Meanwhile, the adoption of Layer-2 solutions continues to rise, allowing the main network to offload demand and reduce transaction fees. A significant portion of all issued ETH is involved in staking or held long-term, which reduces the token supply in the market.
Institutional interest in Ether remains robust. In 2025, the first exchange-traded funds (ETFs) linked to Ethereum launched in the U.S., attracting over $3 billion in investment during their initial months. Large investment companies and funds continue to view Ether alongside Bitcoin as a foundational asset for long-term crypto portfolios, even amidst current price fluctuations.
Altcoins: At the Epicenter of the Sell-off
The broader altcoin market has found itself at the epicenter of the recent sell-off. Many previously rapidly growing tokens have lost significant value at the beginning of 2026, as investors reduce their riskiest positions. Capital is flowing out of volatile altcoins into more stable assets or entirely out of the crypto market – evidenced by the rising share of stablecoins and Bitcoin's strengthened dominance. Currently, BTC's share of the total capitalization has once again exceeded 60%, indicating a relative redistribution of funds from altcoins to the flagship crypto asset.
Just recently, tokens like XRP, Solana, and BNB were in the spotlight, showing leading growth on positive news. XRP (Ripple) surged to $3 last summer following a legal victory for the company in the U.S. but has now retraced roughly half from those highs, following the overall downward trend. A similar dynamic is observed for Solana (SOL): after impressively climbing above $200 amidst network recovery in 2025, SOL has corrected but remains significantly above last year's lows and continues to be one of the leading protocols for DeFi and Web3. Binance Coin (BNB), which reached a record ~$880 in 2025 despite regulatory pressure on Binance, has also decreased in price (to around $500), reflecting the overall decline in market activity.
Other major altcoins like Cardano (ADA), Dogecoin (DOGE), and Tron (TRX) are also under pressure, trading significantly below their peaks. Nevertheless, they retain their positions in the top 10 due to still large market capitalizations and support from enthusiastic communities. During this period of high uncertainty, many participants prefer to weather market turbulence in stablecoins (USDT, USDC, etc.) or Bitcoin, limiting the inflow of new capital into the altcoin segment until the situation clarifies.
Regulation: A Course Towards Clarity of Rules
Regulatory changes are rapidly gaining momentum worldwide, as authorities strive to keep pace with industry development. In the U.S., the administration is working to advance a comprehensive Digital Asset Market Clarity Act, which aims to clearly delineate the powers of the SEC and CFTC and establish clear rules for the crypto market. This bill, along with accompanying measures for oversight of stablecoins (requiring 100% backing of digital dollars), seeks to end the practice of “regulation by enforcement” and provide transparency for legal crypto firms. However, the bill's consideration has been somewhat delayed: in January, the Senate postponed the scheduled discussion after industry disagreements arose (e.g., regarding yield restriction in DeFi). Nevertheless, it is expected that work on legislation will continue in the coming months, given the high-level government support for the initiative.
While Congress discusses new rules, U.S. regulatory bodies continue to actively monitor the market. At the end of 2025, the SEC took several high-profile actions against fraudulent schemes (“AI Wealth,” Morocoin, etc.), demonstrating its determination to clear the industry of blatant scams. Simultaneously, courts and regulators are gradually clarifying the legal status of key crypto assets – a notable example is Ripple’s victory in the XRP case, which confirmed that XRP is not a security. Such precedents reduce legal uncertainty for investors and companies in the U.S.
In Europe, since the beginning of the year, a unified MiCA regulation has taken effect, establishing transparent rules for crypto asset circulation across all EU countries. The European Union is also preparing to introduce tax reporting standards for cryptocurrency transactions (DAC8 rules, effective in 2026) to enhance transparency and combat tax evasion. In Asia, regulators have also become more active: Japan, for example, plans to ease the tax burden on crypto trading (reducing the tax rate to ~20%) and is considering launching the first crypto ETFs, aiming to enhance the country’s competitive position as a hub for digital assets. Globally, there is a discernible trend of shifting focus from prohibitive measures to integrating the crypto market into the existing financial system through clear regulations and licensing. As clearer rules emerge, institutional investors' trust in the industry is expected to grow.
Institutional Trends: A Pause in Capital Inflow
Following the record inflow of institutional capital into crypto funds in 2025, the start of 2026 has marked a pause. Market volatility has led to a temporary outflow of funds from some crypto ETFs and trusts: funds partially took profits and reduced risks until the situation stabilizes. However, major players are not abandoning their strategic initiatives in the digital asset space. For instance, the exchange operator Nasdaq has lifted restrictions on position sizes in options on crypto ETFs (including funds linked to Bitcoin and Ethereum), equating them to the rules for traditional commodity ETFs. This move expands hedging and trading opportunities for institutions and indicates further integration of crypto products into mainstream markets.
Public companies that have invested in cryptocurrencies are also maintaining their positions despite the price drop. For example, one of the largest corporate holders of Bitcoin (an American company with thousands of BTC on its balance sheet) has signaled that it retains long-term confidence in BTC, even as the market price temporarily fell to the average cost of their reserves. The management of this firm hinted at the possibility of further increasing BTC reserves amid declining prices. Overall, many institutional investors have taken a wait-and-see approach: some have reduced exposure in the short term, but strategic interest in crypto assets remains high. The largest banks and asset managers continue to develop crypto products and infrastructure, anticipating that as macro conditions improve and regulatory clarity emerges, demand for digital assets from clients will resume.
Macroeconomics: Hawkish Fed and Flight to Safety
Macroeconomic factors at the beginning of 2026 are unfavorable for risk assets, and cryptocurrencies have felt this pressure. In the U.S., a change in leadership at the Federal Reserve is anticipated; Kevin Warsh, the candidate, is known for his commitment to a hawkish monetary policy. Expectations of higher rates and the reduction of the Federal Reserve's balance sheet have intensified investor fears, as the excess liquidity that has underpinned the cryptocurrency rally in recent years is now at risk. Simultaneously, political uncertainty has complicated the backdrop: by the end of January, a threat of a U.S. government shutdown due to budget disagreements emerged, further undermining risk appetite until a temporary agreement in Congress averted the shutdown.
On the international front, trade and economic risks have also increased. The U.S. administration has threatened new tariffs against the EU, reviving fears of escalating trade wars. In Japan, a sharp spike in government bond yields destabilized the domestic market and diverted some global liquidity away from risk assets. These events triggered a classic “flight to quality”: investors flocked to safety instruments. The price of gold soared to historic highs, exceeding $5,000 per ounce, while the U.S. dollar index strengthened significantly. Against this backdrop, Bitcoin and other crypto assets temporarily lost their status as “digital gold” – at least in the eyes of investors urgently seeking refuge from risks. Instead of cryptocurrencies, capital briefly redirected to traditional safe-haven assets and highly liquid instruments. However, as macroeconomic clarity starts to return (e.g., stabilization of the Fed's policy or reduction of geopolitical tension), interest in the crypto market may be revived.
Top 10 Most Popular Cryptocurrencies
- Bitcoin (BTC) – The first and largest cryptocurrency (~60% of the market by capitalization). BTC trades around $80,000, remaining “digital gold” and the foundation of most investors' crypto portfolios.
- Ethereum (ETH) – The second-largest token by market capitalization and leading smart contract platform. ETH is currently priced around $2,400; Ether underpins the DeFi ecosystem and numerous dApps, playing a key role in the crypto economy.
- Tether (USDT) – The largest stablecoin, pegged to the U.S. dollar at a 1:1 ratio. Widely used in the market for trading and capital storage; with a capitalization of about $80 billion, it is one of the key sources of liquidity in the ecosystem.
- Binance Coin (BNB) – The native token of the global cryptocurrency exchange Binance and the BNB Chain. BNB holders receive discounts on fees and access to ecosystem products; the coin is currently trading around $500 following a correction. Despite regulatory pressure on Binance, BNB remains in the top 5 due to its wide applications in trading and DeFi.
- XRP (Ripple) – The cryptocurrency of the Ripple payment network for fast cross-border transfers. XRP is currently priced around $1.50, approximately half its recent peak (the token climbed above $3 last summer on the wave of legal clarity regarding its status in the U.S.). Nevertheless, XRP maintains its position among the largest coins and attracts heightened attention from banks and funds.
- USD Coin (USDC) – The second most popular stablecoin from Circle, fully backed by dollar reserves. Known for its high transparency and compliance with regulatory requirements; 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 rose above $200 in 2025, reviving investor interest in the project, and is now trading at approximately half that value (just over $100) following market correction. Solana is considered one of Ethereum’s competitors in the DeFi and Web3 spaces due to its scalability.
- Cardano (ADA) – The cryptocurrency of the Cardano platform, developed with a scientific approach. ADA retains a spot in the top 10 due to its large market capitalization (tens of billions of coins in circulation) and active community, though its price (~$0.50) is significantly below its all-time high.
- Dogecoin (DOGE) – The most well-known “meme” cryptocurrency, initially created as a joke but has grown to become a top-10 asset. DOGE trades around $0.10, supported by community loyalty and periodic attention from celebrities. Despite high volatility, Dogecoin continues to rank among the largest coins, demonstrating remarkable resilience in investor interest.
- Tron (TRX) – The token of the Tron blockchain platform, focused on decentralized applications and digital content. TRX (~$0.25) is widely used for issuing and transferring stablecoins (a significant portion of USDT circulates on the Tron network due to low fees), allowing it to remain among the market leaders alongside other top assets.
Prospects and Expectations
In the short term, sentiment in the crypto market remains cautious. The “fear and greed” index for digital assets has shifted into the “fear” zone, sharply contrasting with the euphoria just a few months ago. Many analysts warn that the correction could deepen if macro risks persist: forecasts suggest possible Bitcoin drops to the $70,000–$75,000 levels if current support levels are breached. High volatility and recent price drops serve as a reminder for investors about the need for careful risk management.
Nonetheless, the medium- and long-term outlook for the crypto market largely remains positive. The industry continues to witness technological innovations and new projects, and major players have not lost interest in digital assets, viewing the current downturn as an opportunity to strengthen their positions. Historically, after periods of rapid growth (like in 2025), the market often transitions into a phase of cooling and consolidation before resuming its upward trend. Fundamental drivers—from the mass adoption of crypto technologies to the integration of blockchain into the traditional financial sector—have not disappeared, and many experts remain optimistic.
Some investment firms maintain ambitious targets for cryptocurrency prices. For instance, forecasts suggest that with improved macroeconomic conditions, Bitcoin could once again surpass the $100,000 mark and reach new heights over the next couple of years. Of course, much depends on regulatory actions and central banks: if the Fed shifts to easing policy amidst declining inflation and legislative clarity reduces legal risks, the inflow of capital into the cryptocurrency market could resume at an accelerated pace. For now, investors are advised to maintain a balance between caution and strategic foresight, remembering that volatility is an inherent part of the cryptocurrency market's development.
