Cryptocurrency News for Saturday, January 31, 2026: Bitcoin Consolidates After Correction, Ethereum and Altcoins Under Pressure, Investor Sentiment and Institutional Trends in the Crypto Market
The global cryptocurrency market is showing continued correction as the week comes to a close, amidst ongoing macroeconomic uncertainty. Leading digital assets have experienced significant price declines: Bitcoin (BTC) is consolidating around the $85 thousand mark after recent peaks, while Ethereum (ETH) has fallen below $3 000 (to approximately $2 800). The total cryptocurrency market capitalization has shrunk to around $2.8 trillion, while the "Fear and Greed Index" has moved into the "fear" zone, reflecting investor caution. Market participants are assessing how deep the current drawdown will be and what factors will dictate future price movements.
Bitcoin: Correction After Record Rally
Bitcoin has been trading around $85 thousand this week, pulling back from its historical high of approximately $100 thousand reached in early January. Over the past few days, BTC has continued its downward trend, experiencing nearly two weeks of consecutive declines—the longest downturn in over a year. The primary driver of this drop has been a general decrease in risk appetite across global markets: news regarding escalating trade relations between the U.S. and Europe (the U.S. ultimatum concerning Greenland with a threat of tariffs) triggered sell-offs within the crypto market as well. In recent days, margin positions totaling over $2 billion have been liquidated, exacerbating the downward movement of the asset. Technically, the critical support zone is now around ~$80 thousand—maintaining this level is crucial to avoid a deeper decline (potentially down to ~$70–75 thousand, according to several analysts). At this stage, BTC continues to demonstrate a high correlation with risk assets and temporarily fails to uphold its status as "digital gold": in an environment of uncertainty, investors prefer to retreat to real safe-haven assets.
Altcoin Market: Widespread Decline
The altcoin market is also experiencing a broad-based downturn. Ethereum (ETH), the second-largest cryptocurrency by market capitalization, has dropped more than 3% in the past 24 hours and remains below $3 000, highlighting the vulnerability of altcoins to overall market corrections. The vast majority of leading tokens have fallen into the "red zone": over 90 of the top 100 cryptocurrencies have declined in price over recent days. For example, XRP (the token from Ripple) has dropped to ~$1.80 amid ongoing sell-offs, while BNB has decreased to ~$610 this week, losing around 5% in the last 24 hours. Solana (SOL) has retraced to ~$120, even as the share of staked coins in its network has reached a record high of ~70%. Many investors are partially transferring funds into stablecoins (digital equivalents of the U.S. dollar), increasing the share of these coins in circulation amidst market turbulence. Overall, the future dynamics of the altcoin sector largely depend on Bitcoin's behavior: if the flagship stabilizes around current levels, the market for alternative coins might find a local bottom and start to recover.
Top 10 Most Popular Cryptocurrencies
The top 10 largest and most popular cryptocurrencies as of today include the following digital assets:
- Bitcoin (BTC) – the leading cryptocurrency with a dominant market share (around 60% of total capitalization). Current price ~ $85 thousand; following a powerful rally in 2025, Bitcoin is experiencing a correction from its historical highs, but still confidently holds first place among digital assets.
- Ethereum (ETH) – the second-largest crypto asset, serving as a foundational platform for smart contracts (decentralized finance, NFTs, and other applications). Current price is around $2 800; ETH is under pressure following Bitcoin's decline, yet maintains a key role in the industry. Many experts anticipate renewed interest in ETH in 2026, driven by further development of the ecosystem and network updates.
- Tether (USDT) – the largest stablecoin pegged to the U.S. dollar (1 USDT ≈ $1). With a capitalization of around $80 billion; USDT is widely used by investors to preserve capital during heightened volatility—during periods of uncertainty, funds flow into this digital equivalent of the dollar, ensuring relative portfolio stability.
- BNB (BNB) – the native token of the Binance ecosystem (the largest cryptocurrency exchange and BSC blockchain platform). Price around $620; due to its extensive use on the Binance platform, BNB remains firmly in the top 5, although it has also experienced declines in recent days amid the overall negative market backdrop.
- USD Coin (USDC) – the second-largest stablecoin issued by the Centre consortium (fintech company Circle). Fully backed by reserves in U.S. dollars (capitalization of about $50–52 billion) and widely used in trading operations and on DeFi platforms, USDC remains one of the most reliable digital dollars.
- XRP (XRP) – a cryptocurrency related to the fintech company Ripple (solutions for international payments). Current price around $1.80; following Ripple's landmark victory over the SEC in 2025, XRP surged significantly and re-entered the top ten, although the current market correction has partially offset this price growth.
- Solana (SOL) – a rapidly growing blockchain platform focused on high speed and volume transactions. Current price around $120; Solana remains in the top 10 thanks to the development of its own DeFi/NFT ecosystem. A record ~70% of all SOL coins are currently staked, reflecting a high level of community trust in the project.
- Tron (TRX) – a popular smart contracts and digital content platform in Asia. Current price of TRX is around $0.28; thanks to its active use of the Tron network (including for issuing stablecoins and quick transfers with minimal fees), this token retains its place among the largest cryptocurrencies worldwide.
- Dogecoin (DOGE) – a "meme" cryptocurrency originally created as a joke, but has gained massive popularity. Current price around $0.10; despite its humorous origins, Dogecoin remains one of the most capitalized coins. However, its price is characterized by high volatility and is significantly influenced by community sentiment and activity.
- Cardano (ADA) – a blockchain smart contract platform developed based on academic research and staged protocol updates. ADA is currently trading around $0.32; the project continues to undergo technical development (recent updates have improved the network's scalability), allowing Cardano to maintain its position among the leaders in the digital asset market.
Geopolitical and Macroeconomic Risks
External factors continue to intensify pressure on cryptocurrencies. The unexpected escalation of trade disputes between the U.S. and Europe has become one of the key triggers for the recent sell-off: at the economic forum in Davos, the U.S. president issued an ultimatum of "Greenland or tariffs," threatening to impose tariffs and placing transatlantic relations on the brink of a trade war. In response, the European Union announced its readiness to apply tough countermeasures, heightening investor concerns about the global consequences of the conflict. As a result of this geopolitical noise, market participants are beginning to exit risk assets (such as stocks and cryptocurrencies) in favor of safe-haven instruments.
Monetary factors are also exerting additional pressure. The yields on government bonds in the U.S. and Europe have risen to multi-year highs, signaling potential tightening of financial conditions. Classic "safe havens" are seeing a capital influx: the price of gold has reached a historical maximum, exceeding $4 600 per ounce, similarly, silver is also reaching record highs. At the same time, the volatility index (VIX) has hit a two-month high, reflecting increased uncertainty in traditional markets. The culmination of these macro risks has prompted a "risk-off" mode, whereby crypto assets temporarily lose their appeal in the eyes of global investors.
Investor Sentiment and Volatility
Given the mentioned events, market sentiment in the crypto industry has notably deteriorated. The sentiment index (Crypto Fear & Greed Index) remains in the "fear" territory, indicating a prevailing caution among investors. Since the beginning of the current week, the total market capitalization of cryptocurrencies has decreased by approximately $200 billion, and price volatility has intensified. According to industry analysts, over a single day of sharp price decline, positions valued at more than $1.7 billion were forcibly liquidated—this indicates a massive risk reduction and a "cleansing" of the market from excessive leverage. High price fluctuations increase uncertainty, and many traders are reducing margin positions while awaiting stabilization of the situation.
Institutional Interest and Adoption
Despite the current volatility, institutional interest in digital assets remains historically high. Major financial institutions continue to view the downturn as an opportunity for long-term investments. According to investment funds, there has been a net capital inflow into cryptocurrency products in recent weeks, although the pace has slowed. There is also noticeable active adoption of crypto solutions into the traditional financial system: new cryptocurrency ETFs and exchange products receive regulatory approvals and are launched on major exchanges, expanding investor access to the market. Increased participation from tech giants and banks in blockchain projects underscores institutional confidence in the potential of cryptocurrencies and distributed ledger technology in the long run.
Outlook and Forecasts
The current correction raises questions for investors regarding the market's future: will it be a short-term breather within a continuing bullish trend, or does it signal the start of a more protracted decline? Expert opinions are divided. Some analysts view the current developments as a healthy correction following a rapid rise, anticipating that once the macroeconomic situation stabilizes, Bitcoin and leading altcoins will resume their upward trajectory in the coming months. Some optimistic predictions still suggest that Bitcoin could reach new highs by the end of 2026 (with targets of $150–200 thousand per BTC), given the growing recognition of cryptocurrencies globally.
Other experts urge caution, pointing to persistent risks. They argue that intensified regulatory pressures or further deterioration of the global economic situation could prolong the market's consolidation phase or even lead to a deeper price decline. In the short term, traders are closely monitoring key support levels—specifically, for Bitcoin, it is essential to hold above $75–80 thousand to maintain recovery prospects. Attention is also focused on external factors: monetary policy from leading central banks, geopolitical news, and the launch of new financial products in the crypto market.
Overall, the long-term prospects for the cryptocurrency industry remain positive. Many market participants note that each cycle of correction is accompanied by the cleansing of the market from speculative capital and lays the groundwork for a new growth phase. Investors are advised to adopt a balanced strategy and diversify: current low price levels may present entry opportunities, but risk management and thorough analysis remain key success factors in the dynamic cryptocurrency market.
