Current Cryptocurrency News as of February 4, 2026: Bitcoin Attempts Stabilization After January Sell-off, Major Altcoins Remain at Multi-Month Lows, Regulators Intensify Development of New Rules for the Market, Overview of the Top-10 Popular Cryptocurrencies, and Industry Outlook.
Market Overview: Attempts at Stabilization Following the Crash
As of the morning of February 4, 2026, the global cryptocurrency market is showing tentative signs of recovery after the recent crash. Following the most challenging month (January) in recent memory, during which the total market capitalization shrank by approximately a quarter from autumn peaks, there has been a relative calm in the market. Bitcoin (BTC) is holding around ~$78,000–80,000, bouncing back from a local low of about $75,000, which served as a psychologically significant support level. Nevertheless, the overall cryptocurrency market capitalization is still valued at under $3 trillion (down from over $4 trillion at its peak), and investor sentiment remains cautious: the "fear and greed" index is firmly in the "fear" zone. Traders continue to carefully assess macroeconomic risks and regulatory news before returning to active purchases of digital assets.
Bitcoin: Consolidation at a Key Level
The first cryptocurrency is attempting to stabilize after a deep correction. Earlier in the week, the price of Bitcoin dipped to ~$75,000 – its lowest level since spring 2025 – but subsequently, “digital gold” rebounded from this mark. Currently, BTC is consolidating around $80,000, which is approximately 35-40% below its historical high (nearly $125,000, reached in October 2025). Bitcoin's dominance in the market has once again exceeded 60%, reflecting a flow of capital from more risky altcoins to the flagship asset. Experts note that even after a significant drop, Bitcoin remains one of the largest financial assets in the world, with most long-term holders (“whales”) not rushing to part with their coins. On the contrary, some major investors view the current levels as a strategic opportunity: publicly traded companies that previously increased their BTC reserves are signaling a readiness to buy on dips, confident in Bitcoin's long-term value. This behavior of "smart money" supports confidence in the fundamental qualities of BTC, despite high short-term volatility.
Ethereum: Price Pressure Amid Strong Fundamentals
The second-largest cryptocurrency, Ethereum (ETH), is also under pressure following the market trends. Since the autumn of 2025, the price of ETH has fallen nearly 50% from its peak (~$5,000) and briefly fell below $2,300 during the sell-off this week. Currently, Ether is trading in the range of ~$2,400–2,500, significantly lower than its historical high. However, the fundamental indicators of the network continue to inspire optimism. In January, Ethereum developers successfully carried out another protocol upgrade aimed at improving the blockchain's scalability, and the Layer-2 ecosystem continues to grow, reducing the burden on the main network and fees. A significant portion of ETH coins remains locked in staking or stored long-term, limiting supply in the market. Despite a temporary capital outflow from Ethereum funds during January's downturn, institutional interest in ETH remains: in 2025, the first spot ETH ETFs surfaced 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 decline, Ethereum maintains a key role in the industry (DeFi, NFT, dApps) and strong fundamental positions, supporting positive long-term expectations.
Altcoins: At Multi-Month Market Lows
A wide array of altcoins in the top 10 continues to trade at reduced levels following the January sell-off. Many leading altcoins have lost 30-50% of their value from recent highs. The wave of risk aversion has forced investors to reduce positions in the most volatile tokens, with a significant portion of capital flowing into stable assets or exiting the cryptocurrency market. This has manifested itself in the rising share of stablecoins and the strengthening of Bitcoin's dominance. The share of BTC in the total market capitalization has once again exceeded 60%, indicating a shift of funds from altcoins to the most reliable digital asset.
Not long ago, some coins displayed outperforming dynamics amid positive news, but the overall downward trend has overshadowed these achievements. For instance, the XRP token (Ripple) surged to around ~$3 following the company's high-profile legal victory last summer, but by early February, it has retraced by about half and now hovers around $1.5. A similar situation is seen with Solana (SOL): in autumn 2025, the SOL price soared above $200 due to the recovery of its ecosystem, but has now corrected to just above $100. The Binance Coin (BNB) token reached ~$880 at its peak in 2025, remaining resilient even under regulatory risk pressure around the Binance exchange, but has dropped to around $500 since January along with the market. Other significant altcoins – Cardano (ADA), Dogecoin (DOGE), Tron (TRX) – are also far below their historical peaks, although they still maintain their places in the top ten due to their still high capitalization and community support. In conditions of increased uncertainty, many traders prefer to ride out the turbulence in stablecoins (USDT, USDC, etc.) or Bitcoin. The influx of new capital into the alt segment remains limited until the overall macroeconomic situation becomes clearer. A return of interest in altcoins is possible after Bitcoin stabilizes and risk appetite returns, but in the near term, caution prevails, with a preference for the most reliable assets.
Regulation: Striving for Clear Rules
Amid the rapid growth of the industry, governments and regulators worldwide have intensified efforts to establish unified rules for the cryptocurrency market. Key regulatory directions at the beginning of 2026:
- USA: In the United States, the regulation of digital assets has reached a dialogue stage between the government and the industry. The administration is organizing meetings with banks and crypto companies, aiming to reach a compromise and form a comprehensive regulatory framework (including the Digital Asset Market Clarity Act). There is also discussion about tightening requirements for stablecoin issuers (up to 100% reserve backing for their issuance). At the same time, regulators continue targeted oversight measures: the SEC and CFTC successfully closed several fraudulent schemes at the end of 2025, and legal precedents (e.g., Ripple's victory in the XRP case) gradually clarify the legal status of key tokens. Some states are also pursuing independent initiatives – including proposals to create their own "Bitcoin reserves" to support innovation.
- Europe: As of January 2026, the European Union has implemented the EU-wide regulation MiCA, establishing transparent rules for the circulation of crypto assets across all EU countries. Additionally, a reporting standard DAC8 is being prepared, which will require crypto platforms to report user transactions to tax authorities (to take effect later in 2026). These measures aim to unify oversight and reduce uncertainty for businesses and investors in the European cryptocurrency market.
- Asia: Asian financial centers are seeking a balance between controlling the crypto industry and attracting innovation. Japan plans to ease the tax burden on cryptocurrency operations (considering lowering the trading tax rate to ~20%) and preparing to launch the first crypto ETFs, strengthening 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 enhancing investor protection. The global trend is clear: from bans and fragmented government actions, there is a shift towards integrating the cryptocurrency market into the existing financial system through clear rules and licenses. As such unified norms emerge, the trust of major institutional players in the crypto industry will grow, positively impacting the market in the long term.
Institutional Trends: A Pause and Long-Term Approach
Following record investments from institutional players in cryptocurrencies last year, the beginning of 2026 has marked a more cautious position among major players. The sharp price fluctuations of January triggered a temporary capital outflow from some crypto funds and crypto ETFs: managers locked in part of their profits and reduced risks in anticipation of market stabilization. According to industry analysts, in the last weeks of January, over $1 billion was withdrawn from U.S. spot Bitcoin ETFs, while the outflow from Ethereum funds amounted to hundreds of millions of dollars – a sign of increased caution among "smart money." Nonetheless, long-term interest in digital assets has not disappeared. Major financial companies continue strategic projects in the crypto sphere – implementing blockchain solutions, developing infrastructure for storing and servicing digital assets, and investing in specialized startups. For instance, exchange operator Nasdaq recently expanded trading capabilities for crypto derivatives, lifting certain restrictions and thus bringing the conditions for working with crypto ETFs closer to those of traditional instruments. Public companies holding Bitcoin on their balance sheets are not selling their assets even during downturns, and some, as mentioned, are ready to increase their 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 top ten largest digital currencies by market capitalization as of today are as follows:
- Bitcoin (BTC) – the first and largest cryptocurrency, currently dominates about 60% of the entire market. BTC is trading around $80,000 following a recent correction, remaining the main "digital gold" and foundational 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, with Ether underpinning the DeFi, NFT, and numerous dApp ecosystems, maintaining its key importance 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 liquidity maintenance in the market; its capitalization (around $80 billion) reflects its high demand in the crypto ecosystem.
- Binance Coin (BNB) – the native token of leading cryptocurrency exchange Binance and BNB Chain. It offers discounts on fees and serves as fuel for many DeFi applications. After the correction, BNB trades around $500; despite regulatory pressure surrounding Binance, the coin remains in the top 5 due to its wide range of use cases.
- XRP (Ripple) – the token of the Ripple payment network for fast international transfers. XRP trades around $1.5 (about half of its multi-year high); thanks to legal clarity regarding its status in the U.S. and interest from funds, this token maintains its place among the largest cryptocurrencies.
- USD Coin (USDC) – the second most popular stablecoin (issued by Circle), fully backed by dollar reserves. USDC is known for its transparency and compliance with regulations; it is actively used in trading and DeFi (capitalization of about $30 billion).
- Solana (SOL) – a high-performance blockchain platform known for low fees and fast transaction processing. In 2025, SOL soared above $200, attracting investor attention; however, the price has corrected by about half (slightly above $100) following the market downturn, but Solana still ranks among the leading protocols for DeFi and Web3.
- Cardano (ADA) – the cryptocurrency of the Cardano platform, which develops based on a scientific approach. ADA remains in the top 10 due to its large market capitalization and active community, although its price (~$0.50) is much lower than historical records. The project continues technical updates, forming a foundation for future growth.
- Dogecoin (DOGE) – the most famous "meme" crypto asset, which started as a joke but has evolved into a mass phenomenon. DOGE holds around $0.10; the coin is supported by a devoted community and periodic attention from celebrities. Despite its high volatility, Dogecoin continues to rank in the top 10, demonstrating incredible resiliency of investor interest.
- Tron (TRX) – the token of the Tron platform, focused on decentralized applications and digital content. TRX (~$0.25) is in demand for the issuance and transfer of stablecoins (a significant portion of USDT circulates on the Tron blockchain due to low fees), helping it maintain its position among other major coins.
Outlook 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 dominant negative expectations. Analysts warn that if macro pressures persist, a new wave of price declines could be possible. Specifically, some experts do not rule out a fall in Bitcoin to $70,000–75,000 if current support levels do not hold. Volatility has remained elevated in recent weeks, and a series of margin position liquidations serve as reminders to market participants about the importance of strict risk management when dealing with crypto assets.
Nevertheless, many specialists have a positive view of the medium- and long-term outlook for the industry. Historically, each significant downturn has cleansed the market of excessive speculation and laid the groundwork for a new growth cycle. The technological development of the ecosystem does not stop for a day: innovative projects are emerging, infrastructure is improving, and traditional financial institutions are integrating blockchain into their businesses. Major global corporations are not losing interest in cryptocurrencies – on the contrary, they are viewing the current correction as an opportunity to strengthen their positions. After a tumultuous rally in 2025, a natural phase of cooling and consolidation has occurred; it is expected that as the macroeconomic environment improves and regulatory uncertainty wanes, 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 development of the Web3 concept – continue to be in motion. According to several investment firms, under favorable conditions, Bitcoin could not only recover above the psychological level of $100,000 but also establish new records in the next one to two years. Of course, much will depend on the policies of regulators and central banks: if the Federal Reserve eases its stance amidst slowing inflation, and legislative initiatives address legal gaps, the influx of capital into crypto assets could significantly accelerate. For now, investors are advised to combine vigilance with a strategic outlook on 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 position in the global financial system, and their role in the long-term perspective is likely to grow.
