Current Cryptocurrency News for Thursday, February 5, 2026: Bitcoin Consolidates Around $73,000 After January Sell-off, Major Altcoins at Lows, Central Banks and Regulators Influence Market Sentiment, Overview of the Top 10 Popular Cryptocurrencies and Market Outlook.
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 most severe in recent times: the total market capitalisation dropped by approximately a quarter from the autumn peaks, and only in early February has relative calm begun to emerge. Bitcoin (BTC) remains below ~$80,000, recovering from a local bottom of around $75,000, which proved to be an important psychological support level. The total cryptocurrency market capitalisation is still below $3 trillion (down from over $4 trillion at its peak), and investor sentiment remains subdued: the Fear & Greed Index is firmly positioned in the "fear" zone. Market participants are closely monitoring macroeconomic factors and regulatory updates (including upcoming decisions from central banks) before resuming active purchases of digital assets.
Bitcoin: Holding the Key Level
The leading cryptocurrency is attempting to establish itself after a deep correction. At the beginning of the week, Bitcoin's price fell to ~$72,000 – its lowest since spring 2025 – but subsequently, "digital gold" rebounded from this level. Currently, BTC is consolidating around $73,000, which is approximately 35–40% below its all-time high (nearly $125,000, reached in October 2025). Bitcoin's market dominance has once again exceeded 60%, reflecting a capital shift from riskier altcoins to the flagship asset. Analysts note that even after a significant downturn, Bitcoin remains one of the largest financial assets globally, and most long-term holders ("whales") are hesitant to part with their coins. In contrast, several major investors view the current levels as a strategic opportunity: publicly traded companies that previously increased their Bitcoin reserves signal their readiness to buy more during price declines, confident in Bitcoin's long-term value. Such behaviour from "smart money" maintains confidence in the fundamental qualities of BTC despite high short-term volatility.
Ethereum: Price Pressure Amid Strong Fundamentals
The second-largest cryptocurrency by market capitalisation, Ethereum (ETH), is also under pressure following the wider market trend. Since autumn 2025, the price of ETH has decreased by nearly 50% from its peak (~$5,000) and briefly fell below $2,300 during this week's sell-off. Currently, Ether is trading in the range of ~$2,400–2,500, significantly lower than its historical high; however, the fundamental metrics of the network remain encouraging. In January, Ethereum developers successfully implemented another protocol upgrade aimed at enhancing blockchain scalability, and the ecosystem of Layer-2 solutions continues to expand, reducing the burden on the main network and transaction fees. A significant portion of ETH remains locked in staking or held long-term, which limits supply in the market. Despite a temporary capital outflow from Ethereum funds during the January sell-off, institutional interest in ETH remains: in 2025, the US saw the launch of the first spot ETFs for Ether, attracting billions of dollars, with many large investors continuing to include Ethereum in their portfolios alongside Bitcoin. Thus, even amid price declines, Ethereum retains its key role in the industry (from DeFi and NFTs to decentralised applications) and possesses strong fundamental positions that support positive long-term expectations.
Altcoins: At Minimal Levels Awaiting Momentum
Most leading altcoins from the top 10 continue to trade at reduced levels following the January sell-off. Many major coins 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, with a substantial amount of capital flowing into more stable assets or exiting the cryptocurrency market entirely. This is reflected in the growing proportion of stablecoins and an increase in Bitcoin dominance: the share of BTC in total market capitalisation has again exceeded 60%, indicating a capital shift from altcoins to the most reliable digital asset.
Previously, individual tokens showed leading dynamics amid positive news, but the overall downward trend has negated these achievements. For example, the XRP token (Ripple), after the company Ripple's high-profile court victory last summer, surged to ~$3, but by early February had retraced by roughly half and now stands at around $1.5. A similar situation exists with Solana (SOL): in autumn 2025, SOL’s price soared above $200 due to the recovery of the ecosystem, but has currently corrected to just above $100. The Binance Coin (BNB) token reached ~$880 at the peak of 2025, maintaining resilience even under regulatory pressure surrounding the Binance exchange, but has since dropped to around $500 following the market. Other significant altcoins, such as Cardano (ADA), Dogecoin (DOGE), and Tron (TRX) are also significantly below their historical peaks but retain positions in the top ten due to still substantial market capitalisation and community support. Amid increased uncertainty, many traders prefer to weather the turbulence, holding stablecoins (USDT, USDC, etc.) or Bitcoin. New capital inflow into the altcoin segment remains limited until there is clarification on the overall macroeconomic situation. A resurgence of interest in alternative cryptocurrencies is possible after Bitcoin stabilises and investor sentiment improves, but for the near future, caution and preference for the most reliable assets continue to dominate.
Regulation: Towards Unified Rules
Amid the explosive growth of the industry, governments and regulators worldwide have intensified efforts to establish unified rules for the cryptocurrency market. Key regulatory directions at the start of 2026 include:
- USA: In the United States, the regulation of digital assets has entered a high-level dialogue between the government and the industry. The administration is conducting meetings with banks and cryptocurrency companies, seeking to reach a compromise and create a comprehensive regulatory framework (including the proposed Digital Asset Market Clarity Act). Tighter requirements for stablecoin issuers are also being considered (up to 100% backing of their issuance). Meanwhile, regulatory bodies continue targeted measures: at the end of 2025, the SEC and CFTC succeeded in shutting down several fraudulent schemes, and legal precedents (such as Ripple's victory in the XRP case) are gradually clarifying the legal status of key tokens. Individual states are pursuing their initiatives – including proposals to establish regional "Bitcoin reserves" to support innovation.
- Europe: As of January 2026, the European Union has implemented the EU-wide MiCA regulation, which establishes uniform transparent rules for the circulation of crypto assets in all EU countries. Additionally, the introduction of the DAC8 standard is being prepared, which will require crypto platforms to report user transactions to tax authorities (this measure will come into effect later in 2026). These steps aim to unify oversight and reduce uncertainty for businesses and investors in the European cryptocurrency market.
- Asia: Asian financial centres are seeking to balance oversight of the crypto industry with the attraction of innovation. Japan plans to ease the tax burden on cryptocurrency transactions (discussing a reduction of the trading tax rate to around 20%) and is preparing to launch the first crypto ETFs, thus 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 approach allows for the attraction of high-tech companies while simultaneously increasing investor protection. The global trend is clear: instead of bans and fragmented actions, states are moving towards integrating the cryptocurrency market into the existing financial system through clear rules and licenses. As such unified standards emerge, trust among large institutional players in the crypto industry is growing, which in the long term is likely to have a positive impact on the market.
Institutional Investors: A Pause and Strategic View
Following a record influx of institutional capital into cryptocurrencies last year, the beginning of 2026 has been marked by a more cautious stance among big players. The sharp price fluctuations in January caused a temporary outflow of funds from some crypto funds and ETFs: many managers realised a portion of their profits and reduced risks, awaiting market stabilisation. According to industry analysts, in the last weeks of January, more than $1 billion was withdrawn from American spot Bitcoin ETFs, and the outflow from Ethereum funds amounted to hundreds of millions of dollars – reflecting increased caution from "smart money." Nevertheless, long-term interest in digital assets has not disappeared. Major financial companies continue to undertake strategic projects in the crypto space: they are implementing blockchain solutions, developing infrastructure for the custody and servicing of digital assets, and investing in niche startups. For instance, the operator of the Nasdaq exchange recently expanded trading capabilities for crypto derivatives, relaxing several restrictions and thereby bringing the conditions for dealing with crypto ETFs closer to those of traditional markets. Public companies holding Bitcoin on their balance sheets are not selling their assets even during price declines, and some, as mentioned earlier, are prepared to increase their positions at attractive prices. As macroeconomic uncertainty decreases and regulatory rules clarify, institutional investors are expected to accelerate their investments in cryptocurrencies once again.
Top 10 Most Popular Cryptocurrencies
As of today, the top ten largest digital currencies by market capitalisation include the following assets:
- Bitcoin (BTC) – the first and largest cryptocurrency, currently dominating approximately 60% of the entire market. BTC is trading below $80,000 following a recent correction, remaining for many investors a primary "digital gold" and the foundational asset of 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 for DeFi, NFTs, and numerous decentralised applications, maintaining its critical importance for the industry.
- Tether (USDT) – the largest stablecoin, pegged to the US dollar at a 1:1 ratio. USDT is widely used for trading and transactions, providing liquidity to the market; its capitalisation (around $80 billion) reflects high demand in the crypto ecosystem.
- Binance Coin (BNB) – the native token of leading cryptocurrency exchange Binance and the BNB Chain blockchain platform. It offers discounts on fees and serves as "fuel" for many DeFi applications. Following the correction, BNB is priced around $500; despite regulatory pressure surrounding Binance, the coin remains in the top 5 due to its extensive utility.
- XRP (Ripple) – the token for the Ripple payment network, designed for fast international transfers. XRP is trading at about $1.5 (approximately half its multi-year peak); due to legal clarity of its status in the US and interest from funds, this token retains 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 (capitalisation around $30 billion).
- Solana (SOL) – a high-performance blockchain platform known for its low fees and fast transaction processing. In 2025, SOL rose above $200, attracting investor interest; however, its price has since corrected by about half (just above $100) following the market downturn, although Solana remains among 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 capitalisation and an active community, although its price (~$0.50) is substantially below historical highs. The project continues to undergo technical updates, laying the groundwork for future growth.
- Dogecoin (DOGE) – the most well-known "meme" crypto asset, which began as a joke but has since transformed into a mainstream phenomenon. DOGE is holding around $0.10; the coin is supported by a dedicated community and periodic attention from notable personalities. Despite high volatility, Dogecoin continues to rank in the top 10, demonstrating astonishing resilience in investor interest.
- Tron (TRX) – the token of the Tron platform, focused on decentralised applications and digital content. TRX (~$0.25) is in demand for issuing and transferring stablecoins (a significant portion of USDT is traded on the Tron blockchain due to low fees), helping it maintain a place among other large coins.
Outlook and Expectations
In the near term, the cryptocurrency market remains uncertain. Investor sentiment continues to lean towards caution: the Fear & Greed Index is in the "fear" zone, reflecting the predominance of negative expectations. Analysts warn that if macro pressures persist, a new wave of price declines may occur. In particular, some experts do not rule out the possibility of Bitcoin falling to $70,000–75,000 if current support levels do not hold. Volatility in recent weeks has remained high, and a series of margin liquidation events remind market participants of the importance of strict risk management when dealing with crypto assets.
Many specialists view the mid-term and long-term prospects of the industry positively. Historically, each deep decline has cleared the market of excessive speculation and laid the groundwork for a new stage of growth. Technological development within the ecosystem continues unabated: innovative projects are emerging, infrastructure is being improved, and traditional financial institutions are increasingly integrating blockchain into their business. Major global corporations show sustained interest in cryptocurrencies; rather, they view the current correction as an opportunity to strengthen their positions.
Following the dramatic rally in 2025, a natural phase of cooling and consolidation has ensued. It is expected that with improvements in the macroeconomic environment and the resolution of regulatory uncertainties, the market will resume its upward trajectory. Fundamental demand factors for digital assets – from the widespread adoption of distributed ledger technology to the expansion of decentralised finance (DeFi) and the development of the Web3 concept – continue to operate. According to several investment firms, under favourable conditions, Bitcoin could not only recover above the psychological mark of $100,000 but also set new records in the coming one to two years. Of course, much depends on the actions of regulators and central banks: if the Federal Reserve eases its monetary policy amid slowing inflation and legislative initiatives close legal gaps, the inflow of capital into crypto assets could accelerate significantly.
In the meantime, 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 present new entry points. Digital assets, despite the temporary downturn, continue to solidify their place in the global financial system, and their role in the global economy is likely to grow in the long term.
