Cryptocurrency News for Saturday, 31 January 2026: Bitcoin Consolidates After Correction, Ethereum and Altcoins Under Pressure, Investor Sentiment and Institutional Trends in the Crypto Market.
The global cryptocurrency market is exhibiting a continued correction as macroeconomic uncertainty persists towards the end of the week. Leading digital assets have seen a significant decline in price: Bitcoin (BTC) is consolidating around the $85,000 mark after recent peaks, while Ethereum (ETH) has dropped below $3,000 (to approximately $2,800). The overall market capitalisation of cryptocurrencies has shrunk to around $2.8 trillion, and the 'fear and greed' index has shifted into the 'fear' zone, reflecting investor caution. Market participants are assessing how deep the current downturn will be and which factors will determine future price movements.
Bitcoin: Correction After Record Rally
Bitcoin is trading around $85,000 this week, down from an all-time high of approximately $100,000 reached in early January. In recent days, BTC has continued its downward trend, experiencing nearly two weeks of consecutive declines – the longest downturn in over a year. The main driver behind the decline has been a general deterioration in risk appetite across global markets: news regarding escalating trade tensions between the US and Europe (the US ultimatum over Greenland with threats of tariffs) triggered sell-offs in the crypto market as well. Over the past few days, more than $2 billion in margin positions have been liquidated, further amplifying the asset's downward movement. Technically, the crucial threshold now stands at around $80,000 – maintaining this level is critical to avoid a more profound decline (potentially down to $70-75,000, according to several analysts). At this stage, BTC continues to display a high correlation with risk assets and temporarily fails to live up to its 'digital gold' status: in uncertain conditions, investors prefer to move into tangible safe-haven assets.
Altcoin Market: Widespread Decline
The altcoin market is also experiencing a broad decline. Ethereum (ETH), the second-largest cryptocurrency by market capitalisation, has dropped by over 3% in the last 24 hours and is holding below $3,000, highlighting the vulnerability of altcoins to overall market corrections. The overwhelming majority of leading tokens have entered the 'red zone': more than 90 of the top 100 cryptocurrencies have depreciated in recent days. For instance, XRP (the token of the Ripple company) has fallen to approximately $1.80 amidst ongoing sell-offs in recent weeks; BNB has dropped to about $610 this week, losing around 5% in the past day; Solana (SOL) has declined to approximately $120, despite the fact that the share of staked coins in its network has reached a record ~70%. Many investors are partially shifting their funds into stablecoins (digital equivalents of the US dollar), increasing the share of such coins in circulation amidst market turbulence. Overall, the further dynamics in the altcoin sector largely depend on Bitcoin's behaviour: if the flagship asset stabilises around current levels, the alternative coins market may find a local bottom and begin recovery.
Top 10 Most Popular Cryptocurrencies
As of today, the top 10 largest and most popular cryptocurrencies include the following digital assets:
- Bitcoin (BTC) – the leading cryptocurrency with a dominant market share (around 60% of total capitalisation). Current price: ~ $85,000; following the powerful rally of 2025, Bitcoin is undergoing a correction from historical highs, yet still confidently holds the first position among digital assets.
- Ethereum (ETH) – the second-largest crypto asset, the foundational platform for smart contracts (decentralised finance, NFTs, and other applications). Current price: approximately $2,800; ETH is under pressure following Bitcoin, yet continues to play a key role in the industry. Many experts anticipate renewed interest in ETH in 2026 due to further development of the ecosystem and network upgrades.
- Tether (USDT) – the largest stablecoin pegged to the US dollar (1 USDT ≈ $1). Capitalisation around $80 billion; USDT is widely used by investors to preserve capital amidst heightened volatility – during periods of uncertainty, funds shift 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 Binance Smart Chain). Current price: around $620; due to its extensive use on the Binance platform, BNB remains firmly in the top 5, although the coin has also seen declines in response to 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 US dollars (capitalisation around $50-52 billion) and widely used in trading operations and on DeFi platforms, it remains one of the most reliable digital dollars.
- XRP (XRP) – a cryptocurrency associated with fintech company Ripple (solutions for international payments). Current price: approximately $1.80; after Ripple's landmark victory over the SEC in 2025, XRP surged and returned to the top ranks, although the current market correction has partially offset this price increase.
- Solana (SOL) – a rapidly growing blockchain platform focused on high speed and transaction volume. Current price: around $120; Solana remains in the top 10 due 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 platform in Asia for smart contracts and digital content. Current price: around $0.28; due to the active use of the Tron network (including for issuing stablecoins and for fast transfers with minimal fees), this token retains its position among the largest cryptocurrencies worldwide.
- Dogecoin (DOGE) – a 'meme' cryptocurrency originally created as a joke but has gained widespread popularity. Current price: around $0.10; despite its humorous origin, Dogecoin remains one of the most capitalised coins. However, its price is characterised by high volatility and substantially depends on the sentiments and activity of the community.
- Cardano (ADA) – a blockchain smart contract platform evolving based on academic research and phased protocol upgrades. ADA is currently trading around $0.32; the project continues its technical development (recent updates have enhanced the scalability of the network), allowing Cardano to maintain its position among market leaders in digital assets.
Geopolitical and Macroeconomic Risks
External factors continue to exert pressure on cryptocurrencies. The unexpected escalation of trade disputes between the US and Europe has become one of the key triggers for the recent market sell-off: during the economic forum in Davos, the US president issued an ultimatum of "Greenland or tariffs," threatening to impose tariffs, which placed transatlantic relations on the brink of a trade war. In response, the European Union has stated its readiness to implement stringent countermeasures, heightening investor concerns about the global consequences of the conflict. As a result of this geopolitical noise, market participants have begun to exit risk assets (such as stocks and cryptocurrencies) in favour of safe-haven instruments.
Monetary factors also contribute additional pressure. Yields on government bonds in the US and Europe have risen to multi-year highs, indicating a potential tightening of financial conditions. Classic 'safe havens' are experiencing capital inflows: the price of gold has reached an all-time high, surpassing $4,600 per ounce, while silver is also experiencing record price increases. Simultaneously, the volatility index (VIX) has reached a two-month peak, reflecting increased uncertainty in traditional markets. The combination of these macro risks has triggered a 'risk-off' mode, in which crypto assets temporarily lose their appeal in the eyes of global investors.
Investor Sentiment and Volatility
In light of the aforementioned events, market sentiment in the crypto industry has notably worsened. The sentiment index (Crypto Fear & Greed Index) remains in the 'fear' category, signalling a predominance of caution among investors. Since the beginning of the week, the total capitalisation of the cryptocurrency market has shrunk by approximately $200 billion, and price volatility has intensified. According to industry analysts, over a single day of sharp price declines, positions worth more than $1.7 billion were forcibly liquidated – indicating a substantial reduction in risks and a 'cleansing' of the market from excessive leverage. High price fluctuations increase uncertainty, and many traders are reducing margin positions, anticipating a stabilization of the situation.
Institutional Interest and Adoption
Despite the current volatility, institutional interest in digital assets remains historically high. Major financial organisations continue to view the downturn as an opportunity for long-term investments. According to investment funds, there has been a net inflow of capital into cryptocurrency products in recent weeks, although the pace has slowed. Additionally, there is a noticeable active adoption of crypto solutions within the traditional financial system: new cryptocurrency ETFs and exchange-traded products are receiving regulatory approval and launching on major exchanges, enhancing investor access to the market. The participation of technology giants and banks in blockchain projects is increasing, underscoring institutional confidence in the potential of cryptocurrencies and distributed ledger technology over the long term.
Outlook and Predictions
The current correction raises questions for investors about the future prospects of the market: will it be a short-term breather within the ongoing bullish trend, or does it signal the beginning of a more prolonged decline. Expert opinions are divided. Some analysts view the current situation as a healthy correction following rapid growth, expecting that with stable macroeconomic conditions, Bitcoin and leading altcoins will resume their ascent in the coming months. Some optimistic projections continue to propose that Bitcoin could reach new heights by the end of 2026 (targeting $150,000–200,000 per BTC), given the increasing recognition of cryptocurrencies globally.
Others, however, urge caution, pointing to ongoing risks. They argue that increased regulatory pressure or further deterioration of the global economic situation could prolong the market consolidation phase or even lead to a more significant decline in prices. In the short term, traders are closely monitoring key support levels – for Bitcoin, it is crucial to stay above $75,000–80,000 to maintain chances for recovery. 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 correction cycle is accompanied by a cleansing of the market from speculative capital, laying the groundwork for a new phase of growth. Investors are advised to adhere to a balanced strategy and diversification: the current low price levels may present opportunities to enter positions, although risk management and thorough analysis remain key success factors in the dynamic cryptocurrency market.
