Current Cryptocurrency News as of February 4, 2026: Bitcoin Attempts to Stabilize After January Sell-off, Major Altcoins Remain at Multi-Month Lows, Regulators Intensify Development of New Market Rules, Overview of the Top 10 Popular Cryptocurrencies and Industry Prospects.
Market Overview: Attempts at Stabilization After the Downturn
As of the morning of February 4, 2026, the global cryptocurrency market is demonstrating timid attempts at recovery following a recent downturn. After the most challenging month (January) in recent memory, which saw the total capitalization of the sector shrink by approximately a quarter from the autumn peaks, there is a relative calm in the market. Bitcoin (BTC) is holding around $78–80 thousand, having bounced off a local bottom of approximately $75,000, which served as a psychologically significant support level. Nevertheless, the overall cryptocurrency market capitalization is still estimated at below $3 trillion (compared to over $4 trillion at its peak), and investor sentiment remains cautious, with the "fear and greed" index firmly in the "fear" zone. Traders continue to closely evaluate macroeconomic risks and regulatory news before returning to active purchases of digital assets.
Bitcoin: Consolidation at a Key Level
The first cryptocurrency is trying to establish itself after a deep correction. At the beginning of the week, the price of Bitcoin dropped to around $75,000—the lowest level since spring 2025—but then the "digital gold" rebounded from this mark. BTC is currently consolidating around $80,000, approximately 35–40% lower than its historical high of nearly $125,000 reached in October 2025. Bitcoin's market dominance has once again exceeded 60%, reflecting a capital flow from riskier altcoins to the flagship asset. Experts note that even after a significant downturn, Bitcoin remains one of the largest financial assets worldwide, and most long-term holders ("whales") are not in a hurry to part with their coins. On the contrary, some large investors view current levels as a strategic opportunity: publicly traded companies that previously increased their BTC reserves are signaling their willingness to buy more at lower prices, confident in Bitcoin's long-term value. This behavior of "smart money" supports confidence in Bitcoin's fundamental qualities despite high short-term volatility.
Ethereum: Price Pressure Amid Strong Fundamentals
The second-largest cryptocurrency by market capitalization, Ethereum (ETH), is also under pressure following the market trends. Since the autumn of 2025, the price of ETH has fallen by nearly 50% from its peak (~$5,000) and briefly dipped below $2,300 during the sell-off this week. Currently, Ether is trading in the range of ~$2,400–2,500, which is significantly below its historical high; however, the fundamental indicators of the network continue to inspire optimism. In January, Ethereum developers successfully completed another protocol upgrade aimed at enhancing blockchain scalability, and the ecosystem of Layer-2 solutions continues to grow, reducing the burden on the main network and lowering fees. A significant number of ETH coins are still locked in staking or held long-term, limiting supply on the market. Despite a temporary capital outflow from Ethereum funds during the January downturn, institutional interest in ETH persists: in 2025, the first spot ETFs for Ether emerged in the U.S., attracting billions of dollars, and many large investors continue to include Ethereum in their portfolios alongside Bitcoin. Thus, despite the price drop, Ethereum maintains a key role in the industry (DeFi, NFT, dApp) and is in a strong fundamental position, which supports positive long-term expectations.
Altcoins: Multi-Month Market Lows
A broad spectrum of altcoins in the top 10 continues to trade at lower levels following the January downturn. Many leading altcoins have lost 30–50% of their value from recent highs. The wave of risk aversion has forced investors to cut positions in the most volatile tokens, and a significant portion of capital has flowed into stable assets or exited the crypto market entirely. This is reflected in the increased share of stablecoins and the strengthening of Bitcoin's dominance. The share of BTC in total market capitalization has once again surpassed 60%, indicating a shift of funds from altcoins to the most reliable digital asset.
Not long ago, some coins were showing outperformance amid positive news, but the overall downtrend has negated these achievements. For instance, the token XRP (Ripple) surged to around $3 after a significant legal victory for Ripple last summer, but by early February it had retraced approximately half and is now holding at around $1.5. A similar situation exists with Solana (SOL): in the fall of 2025, SOL surged above $200 due to ecosystem recovery, but has since corrected to just above $100. The Binance Coin (BNB) token, which reached ~$880 at its peak in 2025, remained resilient even under regulatory pressures surrounding the Binance exchange; however, since January, it has dropped to around $500 following the market. Other significant altcoins—Cardano (ADA), Dogecoin (DOGE), Tron (TRX)—are also well below their historical peaks, though they remain in the top ten thanks to still high capitalization and community support. In an environment of heightened uncertainty, many traders prefer to ride out the turbulence by holding stablecoins (USDT, USDC, etc.) or Bitcoin. The inflow of new capital into the altcoin segment remains limited until the overall macroeconomic situation clarifies. Renewed interest in altcoins may be possible following Bitcoin's stabilization and a recovery in risk appetite, but caution prevails in the short term and there is a preference for the most reliable assets.
Regulation: The Push for Clear Rules
In the wake of the rapid growth of the industry, governments and regulators around the world have intensified efforts to establish unified rules for the cryptocurrency market. Key regulatory directions in early 2026:
- U.S.A: In the United States, the regulation of digital assets has reached the level of dialogue between government and industry. The administration is organizing meetings with banks and crypto companies, seeking to reach a compromise and create a comprehensive regulatory framework (including the proposed Digital Asset Market Clarity Act). There are also discussions around tightening requirements for stablecoin issuers (potentially requiring 100% backing of their issuance). At the same time, regulators continue targeted oversight: the SEC and CFTC achieved the closure of several fraudulent schemes at the end of 2025, and legal precedents (such as Ripple's victory in the XRP case) are gradually clarifying the legal status of key tokens. In some states, independent initiatives are being undertaken, including proposals to create their own "Bitcoin reserves" to support innovation.
- Europe: Since January 2026, the European Union has implemented the pan-European MiCA regulation, establishing transparent rules for cryptocurrency circulation in all EU countries. Additionally, a report standard known as DAC8 is being prepared, which will require crypto platforms to report user transactions to tax authorities (coming into force later in 2026). These measures are aimed at unifying oversight and reducing uncertainty for businesses and investors in the European crypto market.
- Asia: Asian financial centers are seeking a balance between regulating the crypto industry and attracting innovation. Japan plans to ease the tax burden on cryptocurrency operations (considering a reduction in the trading tax rate to ~20%) and is preparing to launch the first crypto ETFs, bolstering the country's position as a progressive digital hub. In Hong Kong, Singapore, and the UAE, licensing regimes for cryptocurrency exchanges and blockchain projects are being introduced—this allows for attracting high-tech companies while increasing investor protection. The global trend is clear: governments are shifting from bans and disparate measures towards integrating the crypto market into the existing financial system through clear rules and licenses. As such unified norms emerge, trust from major institutional players in the crypto industry will grow, which will positively impact the market in the long run.
Institutional Trends: A Pause and a Long-Term Approach
After record investments from institutional players in cryptocurrencies last year, the beginning of 2026 has seen a more cautious stance from major players. The sharp price fluctuations in January prompted a temporary outflow of funds from some crypto funds and ETFs: managers locked in profits and decreased risks, anticipating market stabilization. According to industry analysts, over $1 billion has been withdrawn from U.S. spot Bitcoin ETFs in the last weeks of January, and hundreds of millions of dollars have flowed out from Ethereum funds—a sign of increased caution among "smart money." However, long-term interest in digital assets has not disappeared. Major financial companies are continuing strategic projects in the crypto sphere—implementing blockchain solutions, developing storage and servicing infrastructure for digital assets, and investing in relevant startups. For instance, the Nasdaq exchange operator recently expanded its trading capabilities for crypto derivatives, lifting several restrictions and thereby bringing the conditions for crypto ETFs closer to traditional instruments. Public companies holding Bitcoin on their balance sheets are not selling assets even in the downturn, and some, as noted, are ready to increase positions at attractive prices. It is expected that as macroeconomic uncertainty decreases and regulatory rules become clearer, institutional investors may resume increasing their investments in cryptocurrencies at an accelerated pace.
Top 10 Most Popular Cryptocurrencies
The current top ten largest digital currencies by market capitalization are as follows:
- Bitcoin (BTC) – the first and largest cryptocurrency, currently dominates around 60% of the entire market. BTC is trading around $80,000 after the recent correction, remaining the primary "digital gold" and base asset for many investors' crypto portfolios.
- Ethereum (ETH) – the second largest crypto asset and leading smart contract platform. The current price of ETH is around $2,400; Ether underpins the ecosystems of DeFi, NFTs, and numerous decentralized applications, maintaining its key significance for the industry.
- Tether (USDT) – the largest stablecoin pegged to the U.S. dollar at a 1:1 ratio. USDT is widely used for trading and holding funds, providing liquidity in the market; its market capitalization (around $80 billion) reflects high demand in the crypto ecosystem.
- Binance Coin (BNB) – the native token of the leading cryptocurrency exchange Binance and the BNB Chain blockchain platform. It provides discounts on transaction fees and serves as fuel for many DeFi applications. After the correction, BNB is priced around $500; despite regulatory pressures surrounding Binance, the coin remains in the top five due to its wide application.
- XRP (Ripple) – the token of the Ripple payment network for fast international transfers. XRP is trading around $1.5 (about half its long-term high); due to the legal certainty of its status in the U.S. and interest from funds, this token retains its place among the largest cryptocurrencies.
- USD Coin (USDC) – the second most popular stablecoin (issuer Circle), fully backed by dollar reserves. USDC is known for its transparency and regulatory compliance; it is widely used in trading and DeFi (with a market value of around $30 billion).
- Solana (SOL) – a high-performance blockchain platform known for its low fees and fast transaction processing. In 2025, SOL traded above $200, attracting investor attention; currently, however, the price has corrected to just above $100 after the market decline, but Solana remains one of the leading protocols for DeFi and Web3.
- Cardano (ADA) – the cryptocurrency of the Cardano platform, developed based on a scientific approach. ADA maintains its place in the top 10 due to a large market capitalization and active community, although its price (~$0.50) is far below historical records. The project continues technical upgrades, laying the foundation for future growth.
- Dogecoin (DOGE) – the most well-known "meme" crypto asset, which started as a joke but has become a phenomenon. DOGE is holding around $0.10; the coin is supported by a loyal community and periodic attention from high-profile individuals. Despite high volatility, Dogecoin continues to rank in the top 10, demonstrating remarkable resilience in investor interest.
- Tron (TRX) – the token of the Tron platform, focused on decentralized applications and digital content. TRX (~$0.25) is in demand for issuing and transferring stablecoins (a significant portion of USDT operates on the Tron blockchain due to low fees), helping it stay in the top tier alongside other major coins.
Prospects and Expectations
In the short term, the situation in the cryptocurrency market remains uncertain. Investor sentiment is still leaning towards caution: the "fear and greed" index is in the "fear" zone, indicating prevailing negative expectations. Analysts warn that without easing macro pressures, a new wave of price declines is possible. In particular, some experts do not rule out Bitcoin falling to $70,000–75,000 if current support levels do not hold. Volatility has remained elevated in recent weeks, and a series of margin liquidation events remind market participants of the importance of strict risk management when dealing with crypto assets.
At the same time, many professionals view medium- and long-term prospects for the industry positively. Historically, every significant decline has purged the market of excessive speculation and set the stage for a new growth cycle. Technological development in the ecosystem has not halted for a day: innovative projects are emerging, infrastructure is improving, and traditional financial institutions are integrating blockchain into their business. Major global corporations are not losing interest in cryptocurrencies—instead, they see the current correction as an opportunity to strengthen their positions. Following the tumultuous rally of 2025, a natural phase of cooling and consolidation has occurred; it is expected that with improving macroeconomic conditions and easing regulatory uncertainty, the market will resume its upward trajectory. Fundamental factors driving demand for digital assets—from the mass adoption of distributed ledger technology to the growth of decentralized finance (DeFi) and the evolution of the Web3 concept—continue to play a critical role. According to several investment firms, under favorable conditions, Bitcoin could not only recover above the psychological level of $100,000 but also set new records within the next year or two. Of course, much depends on the policies of regulators and central banks: if the Federal Reserve adopts a softer stance amid slowing inflation, and legislative initiatives close legal gaps, the influx of capital into crypto assets may accelerate significantly. For now, however, investors are advised to combine vigilance with a strategic view of the market. High volatility is an inherent feature of cryptocurrency development, but for long-term investors, the current correction may represent new entry points. Digital assets, despite the downturn, continue to solidify their place in the global financial system, and their role in the long term is likely to grow.
