Current Cryptocurrency News for Monday, 2 February 2026: Global Market Trends, Dynamics of the Top 10 Cryptocurrencies, Institutional Interest, and Key Factors Influencing the Cryptocurrency Market.
By the morning of 2 February 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 (having lost about a third of its value from a record high of approximately $120,000 reached in October 2025), while Ethereum (ETH) has dipped to approximately $2,500 (almost half its peak of around $5,000 last year). The total market capitalisation of cryptocurrencies, which recently exceeded $4 trillion, is now estimated at less than $3 trillion, reflecting heightened caution among investors. Major altcoins have also suffered considerable losses: many coins in the top 10 have retraced by 30-50% from recent highs. Market sentiment has cooled amid adverse macroeconomic signals (the Federal Reserve’s stringent rhetoric and threats of trade conflicts) and changes in the regulatory environment. These factors have triggered a temporary outflow of capital from risky digital assets in favour of traditional “safe havens” like gold.
Market Overview: Correction Amid Global Uncertainty
The final quarter of 2025 saw the cryptocurrency market hitting historic peaks; however, since then, the dynamics have shifted in the opposite direction. The rapid tightening of external conditions has led to a reduced risk appetite among global investors. Following a series of record highs for Bitcoin and Ethereum last year, the price drop in January 2026 has become the market's most serious test in recent months. The total market capitalisation of the sector has decreased by about a quarter from peak values. Stablecoins have regained prominence in trading volume as many traders have temporarily shifted funds to stable assets. As February begins, the market is characterised by cautious sentiment: participants await clarifications regarding monetary policy and regulations before resuming active cryptocurrency purchases.
Bitcoin: New Annual Low and Search for Support
Recently, Bitcoin (BTC) has fallen to its lowest level since last spring, breaking below $80,000. 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. The sharp decline in price on Friday – to about $78,000 at its trough – was sparked by news of Kevin Warsh's appointment as head of the US Federal Reserve: investors fear that his potentially strict monetary policy will lead to a reduction in liquidity. These concerns have reminded the market of the risks, intensifying the wave of selling.
Despite the correction, Bitcoin remains the largest crypto asset, accounting for approximately 60% of the total market capitalisation and ranking amongst the largest financial assets in the world. Long-term holders of BTC (“whales”) are largely reluctant to part with their coins, viewing Bitcoin as a strategic asset akin to “digital gold.” Moreover, some large corporations holding BTC have expressed intentions to take advantage of the dip to increase their reserves. Such interest from big players supports the market and strengthens confidence that the fundamental value of Bitcoin remains high despite short-term fluctuations.
Ethereum: Price Pressure Despite Upgrades
The second-largest cryptocurrency by market capitalisation, Ethereum (ETH), is also experiencing significant declines. In recent months, the price of ETH has halved from its peak (~$5,000) and has fallen below $2,500. Last week, Ethereum experienced a sharp drop of over 10% in a single day – a wave of automated liquidations on derivative exchanges intensified the price decline. Nevertheless, Ethereum remains a key platform in the crypto ecosystem with actively developing technology.
In January, the Ethereum network successfully conducted another hard fork (protocol update codenamed BPO), aimed at enhancing scalability and efficiency of the blockchain. The growth of Layer-2 solutions, which alleviate the main network and reduce transaction fees, continues. A significant portion of the total ETH issued is engaged in staking or held long-term, which reduces the token's supply in the market.
Institutional interest in Ethereum remains strong. In 2025, the first exchange-traded funds (ETFs) linked to Ethereum emerged in the US, facilitating an influx of over $3 billion in investments in the initial months of operation. Large investment firms and funds continue to regard Ethereum alongside Bitcoin as a core asset in long-term crypto portfolios, despite the current price fluctuations.
Altcoins: At the Epicentre of the Sell-off
The broad altcoin market has found itself at the epicentre of the recent sell-off. Many previously rapidly appreciating tokens have lost significant value at the start of 2026, as investors reduce their riskiest positions. Capital is flowing from volatile altcoins into more stable assets or exiting the cryptocurrency market entirely – as evidenced by the increasing share of stablecoins and the strengthened dominance of Bitcoin. Currently, BTC’s share of total market capitalisation again exceeds 60%, indicating a relative reallocation of funds from altcoins to the flagship crypto asset.
Not long ago, tokens such as XRP, Solana, and BNB were the focus, demonstrating outpacing growth on positive news. XRP (Ripple) skyrocketed to $3 last summer following Ripple's legal victory in the US, returning to the ranks of market leaders. However, XRP has now retreated from those highs by approximately half, following the overall downward trend. Similar dynamics are seen with Solana (SOL): after an impressive rise above $200 amid network recovery in 2025, SOL has corrected but still holds significantly above last year's lows, remaining one of the leading protocols for DeFi and Web3. The Binance Coin (BNB), which reached a record high of around $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, such as Cardano (ADA), Dogecoin (DOGE), and Tron (TRX), are also under pressure, trading significantly below their peaks. Nonetheless, they maintain positions in the top 10 due to still substantial capitalisation and support from enthusiast communities. During this period of high uncertainty, many participants prefer to weather the market turbulence in stablecoins (USDT, USDC, etc.) or Bitcoin, limiting the influx of new capital into the altcoin segment until the broader situation clarifies.
Regulation: A Course Towards Clear Rules
Regulatory changes are rapidly gaining momentum worldwide – authorities are attempting to keep pace with industry developments. In the US, the administration is seeking to advance a comprehensive Digital Asset Market Clarity Act, which will clearly delineate the powers of the SEC and CFTC and establish clear rules for the crypto market. This bill, along with accompanying measures to oversee stablecoins (requiring 100% backing for digital dollars), aims to end the practice of “regulation through enforcement” and ensure transparency for legitimate crypto companies. However, the consideration of the bill has been somewhat delayed: in January, the Senate postponed the planned discussion after disagreements within the industry (for example, regarding yield restrictions in DeFi). Nevertheless, it is expected that legislative work will continue in the coming months, considering the high-level governmental support for the initiative.
While Congress discusses new rules, US 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 a determination to cleanse the industry of outright scams. Simultaneously, courts and regulators are gradually clarifying the legal status of key crypto assets – a notable example being Ripple's victory in the XRP case, confirming that XRP is not a security. Such precedents reduce legal uncertainty for investors and companies in the US.
In Europe, the newly enacted MiCA regulation has established transparent rules for the circulation of crypto assets across all EU countries. The European Union is also preparing to implement tax reporting standards for cryptocurrency transactions (DAC8 rules, effective in 2026) to enhance transparency and combat tax evasion. Regulators in Asia have also become more active: Japan, for instance, plans to alleviate the tax burden on crypto trading (reducing the tax rate to around 20%) and is considering launching the first crypto-ETFs to bolster the country’s competitive position as a digital asset hub. On a global scale, there is a noticeable trend shifting the focus from prohibitive measures to integrating the crypto market into the existing financial system through clear regulations and licensing. It is anticipated that as more clear rules are established, institutional investor confidence in the industry will grow.
Institutional Trends: A Pause in Capital Inflows
Following record capital inflows into crypto funds in 2025, the beginning of 2026 has been characterised by a pause. Market volatility has led to a temporary outflow of funds from some crypto ETFs and trusts; funds have partially realised profits and reduced risks until the situation stabilises. Nevertheless, major players are not abandoning their strategic initiatives in the digital asset space. For instance, in January, exchange operator Nasdaq lifted position size restrictions for options on crypto ETFs (including funds on Bitcoin and Ethereum), aligning them with rules for traditional commodity ETFs. This move expands hedging and trading opportunities for institutional investors and reflects further integration of crypto products into mainstream markets.
Public companies that have invested in cryptocurrencies also maintain their positions despite the decline in prices. For example, one of the largest corporate holders of Bitcoin (an American company with thousands of BTC on its balance sheet) has indicated that it retains long-term confidence in BTC, even as the market price has temporarily fallen to the average cost of their reserves. The management of this firm hinted at possible further accumulation of BTC amidst price reductions. Overall, many institutional investors have adopted a wait-and-see approach: while some have reduced exposure in the short term, strategic interest in crypto assets remains high. Major banks and asset managers continue to develop crypto products and infrastructure, expecting that as macro conditions and regulatory clarity improve, demand for digital assets from clients will resume.
Macroeconomics: A Tough Fed and a Flight to Safe Assets
Macroeconomic factors at the start of 2026 are unfavourable for risky assets, and cryptocurrencies have felt this pressure. A change in leadership at the Federal Reserve is on the horizon: nominee Kevin Warsh is known for his commitment to a tough monetary policy. Expectations of higher rates and a reduction in the Federal Reserve's balance sheet have heightened investor concerns, especially since excess liquidity in recent years has largely fueled the cryptocurrency rally. Simultaneously, political uncertainty has complicated the backdrop: by the end of January, a potential government shutdown in the US due to budget disagreements threatened to undermine risk appetite until a temporary agreement in Congress averted the shutdown.
On the international front, trade and economic risks have increased. The US administration has threatened new tariffs against the EU, reviving fears of escalating trade wars. In Japan, there was a sharp spike in government bond yields, destabilising the local market and pulling some global liquidity from risky assets. These events have provoked a classic “flight to quality”: investors have flocked to safe instruments. The price of gold soared to an all-time high, exceeding $5,000 per ounce, while the US dollar index strengthened significantly. Against this backdrop, Bitcoin and other crypto assets have temporarily lost their status as “digital gold” – at least in the eyes of investors urgently seeking refuge from risks. Instead of cryptocurrencies, capital has been briefly redirected into traditional safe-haven assets and highly liquid instruments. However, as macroeconomic clarity begins to return (for example, if Fed policy stabilises or geopolitical tensions ease), interest in the crypto market has a chance to revive.
Top 10 Most Popular Cryptocurrencies
- Bitcoin (BTC) – the first and largest cryptocurrency (approximately 60% of the market by capitalisation). BTC trades around $80,000, remaining the "digital gold" and the foundation of most investors' crypto portfolios.
- Ethereum (ETH) – the second-largest token and the leading smart contract platform. The price of ETH is currently around $2,400; Ethereum underpins the DeFi ecosystem and numerous dApps, playing a crucial role in the crypto economy.
- Tether (USDT) – the largest stablecoin, pegged 1:1 to the US dollar. Widely used in the market for trading and capital storage; its capitalisation of approximately $80 billion makes USDT a key source of liquidity in the ecosystem.
- Binance Coin (BNB) – the native token of the global cryptocurrency exchange Binance and the BNB Chain. Holders of BNB receive discounts on fees and access to ecosystem products; the coin is currently trading around $500 after correction. Despite regulatory pressure on Binance, BNB remains in the top five due to its extensive application in trading and DeFi.
- XRP (Ripple) – the cryptocurrency of the Ripple payment network for fast cross-border transfers. XRP is currently around $1.50, approximately half its recent peak (in summer, the token climbed above $3 on the wave of legal clarity regarding its status in the US). Nevertheless, XRP retains its position among the largest coins and attracts increased 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 regulatory compliance; widely used in trading and DeFi (capitalisation of around $30 billion).
- Solana (SOL) – a high-performance blockchain platform known for low fees and transaction speed. SOL reached above $200 in 2025, rekindling investor interest in the project, and is currently trading at about half that price (slightly above $100) after market correction. Solana is seen as a competitor to Ethereum in DeFi and Web3 due to its scalability.
- Cardano (ADA) – the cryptocurrency of the Cardano platform, developed using a scientific approach. ADA retains its place in the top 10 due to its substantial market capitalisation (tens of billions of coins in circulation) and an active community, although its price (~$0.50) is significantly below historical highs.
- Dogecoin (DOGE) – the most famous “meme” cryptocurrency, originally created as a joke but has grown into a top 10 asset. DOGE holds around $0.10, supported by community loyalty and periodic celebrity attention. 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 decentralised 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 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 include potential declines of Bitcoin to $70,000-$75,000 should current support levels be breached. High volatility and recent price drops are reminders to investors of the necessity for diligent risk management.
Nonetheless, the medium- to long-term outlook for the crypto market remains predominantly positive. Technological innovations and new projects continue to be realised in the sector, and major players have not lost interest in digital assets, viewing the current decline as an opportunity to reinforce their positions. Historically, after periods of explosive growth (such as in 2025), the market often transitions into a phase of cooling and consolidation before resuming an 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 price targets for cryptocurrencies. For instance, forecasts suggest that with improved macroeconomic conditions, Bitcoin could once again surpass the $100,000 mark and reach new heights within the next couple of years. Of course, much depends on the actions of regulators and central banks: if the Fed indeed shifts towards easing policy in the face of falling inflation, and legislative clarity reduces legal risks, the influx of capital into the crypto market could resume at an accelerated pace. For now, investors are advised to maintain a balance between caution and strategic vision, remembering that volatility is an inherent part of the development of the cryptocurrency market.
