Current Cryptocurrency News for Thursday, February 5, 2026: Bitcoin Consolidates Around $73K After January Plunge, Major Altcoins at Lows, Central Banks and Regulators' Activity Influences Market Sentiments, Overview of the Top 10 Popular Cryptocurrencies and Market Prospects.
Market Overview: Consolidation Ahead of Key Events
As of the morning of February 5, 2026, the global cryptocurrency market is showing cautious stabilization following a recent decline. The January sell-off was one of the sharpest in recent times: the total market capitalization dropped by approximately a quarter from last autumn's peaks, and it was only at the beginning of February that a relative calm emerged. Bitcoin (BTC) is holding below ~$80K, recovering from a local low of around $75K, which acted as an important psychological support level. The total cryptocurrency market capitalization is still below $3 trillion (down from over $4 trillion at its peak), and investor sentiment remains restrained: the Fear and Greed Index has settled in the "fear" zone. Market participants are closely monitoring macroeconomic factors and regulatory news (including upcoming central bank decisions) before resuming active purchases of digital assets.
Bitcoin: Holding the Key Level
The first cryptocurrency is trying to regain footing after a significant correction. At the beginning of the week, the price of Bitcoin dipped to ~$72K—a low not seen since spring 2025—but then "digital gold" bounced off this mark. Currently, BTC is consolidating around $73K, which is approximately 35-40% lower than its historical high (nearly $125K reached in October 2025). Bitcoin's dominance in the market once again exceeds 60%, reflecting a capital flow from more speculative altcoins to the flagship asset. Experts note that even after a substantial drawdown, Bitcoin remains one of the largest financial assets in the world, and most long-term holders (“whales”) are in no hurry to part with their coins. On the contrary, several large investors see the current levels as a strategic opportunity: public companies that previously increased their BTC holdings signal their readiness to accumulate more at lower prices, confident in Bitcoin's long-term value. This behavior from “smart money” reinforces trust 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 broader market trend. Since autumn 2025, the price of ETH has dropped nearly 50% from its peak (~$5,000) and briefly dipped below $2,300 this week amidst the sell-off. Currently, Ether is trading in the range of ~$2,400-$2,500, significantly lower than its historical high, yet the fundamental indicators of the network continue to inspire optimism. In January, Ethereum developers successfully executed another protocol upgrade aimed at improving blockchain scalability, while the Layer-2 solutions ecosystem continues to expand, easing the load on the main network and reducing fees. A significant portion of ETH remains locked in staking or held long-term, which limits market supply. Despite a temporary capital outflow from Ethereum funds during the January sell-off, institutional interest in ETH remains strong: the first spot Ether ETFs launched in the U.S. in 2025 raised billions, and many large investors still include Ethereum in their portfolios alongside Bitcoin. Thus, even amid price declines, Ethereum continues to hold a pivotal role in the industry (from DeFi and NFTs to decentralized applications) and boasts strong fundamentals, supporting positive long-term expectations.
Altcoins: Trading at Lows Awaiting Momentum
Most leading altcoins from the top 10 continue to trade at depressed levels following the January sell-off. Many large coins have lost 30-50% of their value from recent peaks. The wave of risk-off sentiment has prompted investors to trim positions in the most volatile tokens, with a significant amount of capital flowing into more stable assets or exiting the cryptocurrency market entirely. This has manifested in an increase in the share of stablecoins and a rising Bitcoin dominance: BTC's share in total capitalization has once again surpassed 60%, indicating a shift of funds from altcoins to the safest digital asset.
Previously, certain coins demonstrated outperforming dynamics based on positive news, but the overall downward trend negated these achievements. For instance, the XRP (Ripple) token climbed to ~$3 after a high-profile court victory for Ripple last summer, but by early February, it had retraced approximately half and is now holding around $1.5. A similar situation applies to Solana (SOL): in autumn 2025, SOL surged above $200 on the back of ecosystem recovery, but has since corrected to just over $100. The Binance Coin (BNB) token reached approximately $880 at its peak in 2025, remaining resilient even amid regulatory risks surrounding the Binance exchange, but has fallen to around $500 since January alongside the market. Other significant altcoins, such as Cardano (ADA), Dogecoin (DOGE), and Tron (TRX), are also well below their historical highs, yet they maintain positions in the top ten due to still large market capitalization and community support. In light of heightened uncertainty, many traders prefer to ride out the turbulence while 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 alternative cryptocurrencies is possible after Bitcoin stabilizes and investor sentiments improve, but in the near term, caution and preference for the most reliable assets are dominant.
Regulation: Movement Toward Unified Rules
Against the backdrop of the rapid growth of the industry, governments and regulators worldwide have intensified efforts to develop unified rules for the crypto market. Key regulatory directions at the start of 2026 include:
- United States: In the United States, the issue of regulating digital assets has risen to a high level of dialogue between the government and the industry. The administration is conducting meetings with banks and crypto companies to find a compromise and establish a comprehensive regulatory framework (including the discussed Digital Asset Market Clarity Act). There are also considerations to tighten requirements for stablecoin issuers (potentially requiring 100% backing for their issuance). At the same time, regulatory bodies continue targeted measures: at the end of 2025, the SEC and CFTC succeeded in shutting down a number of fraudulent schemes, while legal precedents (such as Ripple's victory in the XRP case) are gradually clarifying the legal status of key tokens. Certain states are taking their own initiatives—up to proposals to create regional "Bitcoin reserves" to support innovation.
- Europe: Since January 2026, the EU has enacted the EU-wide MiCA regulation, establishing unified transparent rules for the handling of crypto assets across all EU countries. Additionally, the implementation of the DAC8 standard is in preparation, which will obligate crypto platforms to report users' transactions to tax authorities (this measure will take effect later in 2026). These steps aim to unify oversight and reduce 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 transactions (discussing a reduction in the trading tax rate to approximately 20%) and is preparing to launch its first crypto ETFs, reinforcing the country's position as a progressive digital hub. In Hong Kong, Singapore, and the UAE, licensing regimes for crypto exchanges and blockchain projects are being introduced—this allows for attracting high-tech companies while increasing investor protection. The global trend is clear: rather than imposing bans and disparate measures, governments are moving toward integrating the crypto market into the existing financial system through clear rules and licenses. As these unified norms emerge, trust from major institutional players in the crypto industry is growing, which will positively impact the market in the long run.
Institutional Investors: Pause and Strategic Outlook
After a record influx of institutional capital into cryptocurrencies last year, the beginning of 2026 has been marked by a more cautious stance from major players. Sharp price fluctuations in January prompted a temporary outflow of funds from some crypto funds and ETFs: many managers locked in profits and reduced risks while awaiting market stabilization. According to industry analysts, in the last weeks of January, over $1 billion was withdrawn from American spot Bitcoin ETFs, and outflows from Ethereum funds amounted to hundreds of millions of dollars—a sign of increased caution from "smart money." Nevertheless, long-term interest in digital assets has not disappeared. Major financial firms continue strategic projects in the crypto space: implementing blockchain solutions, developing storage and servicing infrastructure for digital assets, and investing in relevant startups. For instance, the operator of the Nasdaq exchange recently expanded its trading capabilities for crypto derivatives, lifting various restrictions and thereby bringing the trading conditions for crypto ETFs closer to traditional markets. Public companies holding Bitcoin on their balance sheets are not selling their assets even in downturns; some, as noted earlier, are ready to increase positions at attractive prices. It is expected that as macroeconomic uncertainties decrease and regulatory rules clarify, institutional investors may resume their accelerated accumulation of cryptocurrency investments.
Top 10 Most Popular Cryptocurrencies
As of today, the top ten largest digital currencies by market capitalization include the following assets:
- Bitcoin (BTC) – the first and largest cryptocurrency, currently dominating about 60% of the entire market. BTC is trading below $80,000 after a recent correction, remaining a key "digital gold" and a foundational asset for many cryptocurrency portfolios.
- Ethereum (ETH) – the second-largest crypto asset and leading smart contract platform. The current price of ETH is around $2,400; Ether is the foundation of DeFi, NFT ecosystems, and numerous decentralized applications, maintaining its key importance in the industry.
- Tether (USDT) – the largest stablecoin pegged to the US dollar in a 1:1 ratio. USDT is widely used for trading and transactions, providing liquidity in the market; its capitalization (around $80 billion) reflects high demand within the crypto ecosystem.
- Binance Coin (BNB) – the native token of the leading crypto exchange Binance and BNB Chain blockchain platform. It provides discounts on fees and serves as "fuel" for many DeFi applications. After a correction, BNB is around $500; despite regulatory pressures surrounding Binance, the coin remains in the top 5 due to its wide range of applications.
- 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); thanks to legal clarity regarding its status in the U.S. and interest from funds, this token 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 actively used in trading and DeFi (capitalization around $30 billion).
- Solana (SOL) – a high-performance blockchain platform known for low fees and fast transaction processing. In 2025, SOL rose above $200, attracting investor attention; now, the price has corrected to just above $100 following the market downturn, 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 remains in the top 10 due to significant market capitalization and an active community, although its price (~$0.50) is significantly below historical highs. The project continues technical upgrades, laying the foundation for future growth.
- Dogecoin (DOGE) – the most famous "meme" crypto asset, which began as a joke but turned into a mass phenomenon. DOGE maintains around $0.10; the coin is supported by a loyal community and periodic attention from high-profile individuals. Despite high volatility, Dogecoin continues to be in the top 10, demonstrating surprising 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 moving stablecoins (a significant portion of USDT is traded on the Tron blockchain due to low fees), helping it remain among the top crypto assets alongside other major coins.
Prospects and Expectations
The near-term outlook for the cryptocurrency market remains uncertain. Investor sentiment continues to lean towards caution: the Fear and Greed Index is in the "fear" zone, reflecting prevailing negative expectations. Analysts warn that if macro pressures persist, a new wave of price declines may occur. Specifically, some experts do not rule out the possibility of Bitcoin dropping to $70,000-$75,000 if current support levels do not hold. Volatility has remained high in recent weeks, and a series of margin position liquidations remind market participants of the importance of strict risk management when dealing with crypto assets.
Nevertheless, many professionals view the medium- and long-term prospects for the industry positively. Historically, every significant downturn has cleared the market of excessive speculation, laying the groundwork for a new growth phase. The technological development of the ecosystem does not stop for a day: innovative projects continue to emerge, infrastructure is refining, and traditional financial institutions are increasingly integrating blockchain into their businesses. Major global corporations remain interested in cryptocurrencies—in fact, they see the current correction as an opportunity to strengthen their positions.
Following the vigorous rally of 2025, a natural phase of cooling and consolidation has occurred. It is expected that with improvements in the macroeconomic situation and the removal of regulatory uncertainty, the market will resume its upward movement. Fundamental demand factors for digital assets—from widespread adoption of distributed ledger technology to the expansion of decentralized finance (DeFi) and the development of the Web3 concept—remain in play. According to some investment firms, under favorable conditions, Bitcoin could not only recover above the psychological mark of $100K, but possibly establish new records in the next one to two years. Of course, much depends on the actions of regulators and central banks: if the Federal Reserve eases monetary policy in response to slowing inflation, and legislative initiatives address legal gaps, the inflow of capital into crypto assets could accelerate significantly.
Until then, investors are advised to blend vigilance with a strategic outlook on the market. High volatility is an inherent characteristic of cryptocurrency development, but for long-term investors, the current correction may provide new entry points. Digital assets, despite the temporary downturn, continue to establish themselves within the global financial system, and their role in the global economy is likely to grow in the long run.
