Current Cryptocurrency News for Sunday, 1 February 2026: Bitcoin and Ethereum Dynamics, Altcoin Market Situation, Top 10 Cryptocurrency Overview, Institutional Trends, and Global Factors Influencing the Crypto Market.
By the morning of 1 February 2026, the cryptocurrency market is displaying signs of stabilization after heightened volatility experienced at the end of January. Bitcoin's price, following a significant correction in the middle of the week, has rebounded to around $78,000. Major altcoins, led by Ethereum, have also made gains from recent lows: Ether has returned above $2,800, and several other top assets have increased by 5–10% from their recent local minimums. The total market capitalisation of cryptocurrencies stands at approximately $3.0 trillion, with Bitcoin’s share holding steady near 59%. Investor sentiment is moderately optimistic: despite macroeconomic risks, institutional players continue to increase their investments in cryptocurrencies, signalling confidence in this asset class.
Bitcoin Recovers After Correction
Bitcoin (BTC) is attempting to stabilise following its recent decline: at the end of January, the price of the top cryptocurrency dropped below $80,000, nearing a critical support level before buying signals activated at lower levels. As of the time of publication, BTC is trading in the range of approximately $78,600–79,000, confirming current market quotes below $80,000, reflecting pressure from macroeconomic factors and investor sentiment. The current value is significantly lower than January's local highs of around $95,000, but remains markedly higher than levels seen at the beginning of last year when BTC traded much lower. Bitcoin's market capitalisation is approaching $1.6–1.7 trillion, and its dominance in the cryptocurrency market remains strong.
Key reasons for the recent decline are both technical and fundamental in nature. Increasing macroeconomic uncertainty and expectations of tighter monetary policies in the US and Europe have contributed to a portion of capital flowing out of risk assets, including cryptocurrencies. However, around the $78,000–80,000 price range, we have observed robust demand from major holders and long-term investors who view the price drop as an opportunity to increase their positions. Many analysts note that these levels act as an important support zone, confirming the market's susceptibility to buying even amidst external uncertainties, indicating potential for further consolidation or trend reversal.
Ethereum Maintains Its Position
The second-largest cryptocurrency asset, Ethereum (ETH), exhibits relative stability. At the peak of January's rally, Ether rose above $3,100 but subsequently corrected in line with Bitcoin, briefly dipping to $2,700. Ethereum is now trading around $2,800–2,900, demonstrating its ability to hold key support levels. The market capitalisation of ETH stands at about $340 billion (~12% of the market), and the network continues to attract high user activity due to its leading role in smart contracts, decentralised finance (DeFi), and NFTs.
Institutional interest in Ethereum remains high. In 2025, the first exchange-traded funds (ETFs) based on Ether were launched in the US, facilitating investor access to this asset. Additional support for the ETH market is provided by fundamental factors: the total value locked (TVL) in Ethereum and staking volumes are close to record levels, reflecting participants' trust in the long-term development of the ecosystem. Several analysts believe Ethereum is undervalued: for instance, in a recent address, Fundstrat co-founder Tom Lee stated that Ether is "radically undervalued" and has the potential for multiple growth in the coming years. Ethereum confidently retains its second-place position in the market, with expectations for the launch of new scaling technologies and protocol improvements in 2026 fueling investor interest.
Altcoins on the Rise
The broader altcoin market is demonstrating positive dynamics at the beginning of February, following the recovery of the leading assets. The prices of most cryptocurrencies in the top ten have risen by 3–6% over the past 24 hours, compensating for last week's downturn. The combined market capitalisation of altcoins (excluding BTC) has again surpassed $1.2 trillion. Investors are gradually shifting focus to alternative digital assets, anticipating a potential "alt season" in the second half of the year. The Altcoin Season Index rose to 55 points in January—the highest in recent months—indicating the emergence of a new phase of accelerated altcoin growth.
The major alternative coins are showing strong growth: for instance, Solana (SOL) is holding around $150, recovering from recent lows due to the expansion of its ecosystem and discussions around the launch of an ETF based on Solana. Ripple (XRP) is trading near $2.50, remaining one of the leaders of the year thanks to last year's legal victory by Ripple in its dispute with the SEC, which provided regulatory clarity for the token. Binance Coin (BNB) is consolidating around $600; despite ongoing regulatory pressure on Binance, the token remains in demand due to its key role in the exchange ecosystem and Binance Smart Chain. Among notable growth leaders are payment and infrastructure tokens: for example, Polygon (MATIC) has increased by around 4% in the past day amidst positive news regarding network development, while Litecoin (LTC) saw a 3% uptick, continuing its upward trend of recent weeks. Overall, the altcoin sector is trending upwards, although the growth rates are currently more subdued compared to the "bull" markets of previous years.
Institutional Investments at Record Levels
A key market trend remains the strengthening of institutional participation. Record volumes of cryptocurrency purchases by major players have been logged in recent days. For example, MicroStrategy, led by Michael Saylor, reported the acquisition of approximately $2.13 billion in Bitcoin during January, representing one of the largest single investments in BTC. This "Bitcoin shopping" spree by the publicly-listed company confirms heightened corporate appetite for crypto assets. Furthermore, Intercontinental Exchange (owner of the New York Stock Exchange) announced the development of a new platform for trading and clearing tokenised securities—a step that further blurs the lines between traditional finance and the crypto industry.
In 2025, the first spot Bitcoin ETFs received approval in the US, and by early 2026 multiple exchange-traded funds linked to BTC and ETH are already trading on the market. The inflow of capital into these instruments continues to rise: according to industry analysts, the total assets under management of crypto ETFs worldwide surpassed $60 billion. Asset managers, hedge funds, and even pension funds are increasing their allocations to cryptocurrencies, perceiving Bitcoin and Ether as "digital gold" and "digital oil" for diversification. The heightened institutional interest supports the market with liquidity and reduces volatility, gradually bringing cryptocurrencies closer to the status of a universally accepted investment asset class.
Regulation and Global Adoption
The regulatory environment for cryptocurrencies is becoming clearer worldwide. In the US, the comprehensive Crypto Market Structure Bill is expected to be passed soon, which is intended to clarify the rules surrounding digital assets and enhance investor protection. In Europe, the MiCA regulatory framework is coming into effect, establishing uniform standards for the regulation of cryptocurrencies and stablecoins across all EU countries. These measures on both sides of the Atlantic are forging a solid legal foundation for the industry and reducing uncertainty for institutional investors.
Numerous countries that previously held a tough stance are re-evaluating their approach to cryptocurrencies. For example, reports indicate that Bolivian authorities, having long prohibited cryptocurrency transactions, have begun exploring the integration of blockchain technologies into the national financial system. In Africa and Asia, the expansion of digital assets continues: Kenya is considering the implementation of a state digital currency, while Pakistan is establishing partnerships with international crypto firms to develop the local blockchain infrastructure. Even traditionally conservative financial hubs, such as the UK and Canada, are working on creating clear licensing and regulatory requirements for cryptocurrency businesses. Global acceptance of cryptocurrencies is gradually increasing: the number of digital wallet users worldwide has exceeded 500 million, with more companies willing to accept Bitcoin and USDT as payment. The strengthening of regulation, coupled with increasing adoption, signifies the maturation of the industry and serves as a positive factor in the long term.
Market Sentiment and Volatility
Rapid price fluctuations over recent weeks have been accompanied by a surge of short-term volatility in the cryptocurrency market. The Fear and Greed Index, which reached the "greed" zone (above 70 out of 100) at the start of January, fell to a value of 30 ("fear") by the end of the month. This indicates a significant cooling of sentiment following the correction, as some retail traders and speculators reduced their risk positions. However, market activity indicators remain healthy: daily trading volumes for Bitcoin and Ether remain consistently high, and the proportion of long positions on derivatives platforms has begun to rise again, indicating a return of confidence among certain participants.
Analysts suggest that the current correction is largely technical and temporary. After a multi-month rally in 2025, the market is experiencing a phase of profit "digestion" and position reshuffling, which is a natural process. Volatility remains comparatively lower than peak values seen in previous years, partly due to the increased share of institutional liquidity. Macroeconomic uncertainty (central bank interest rates, inflation) continues to influence short-term price fluctuations, but many experts believe that should inflation slow and signals for easing monetary policy emerge in the second half of 2026, demand for crypto assets may significantly strengthen. Overall, mid-term sentiment can be characterised as cautiously optimistic: market participants are closely monitoring external factors, while fundamental interest in cryptocurrencies remains robust.
Forecasts and Expectations
Despite recent turbulence, many analysts maintain an optimistic outlook for the cryptocurrency market in 2026. Notable strategist Tom Lee (Fundstrat Global Advisors) believes that Bitcoin has not yet reached the peak of the current cycle: in early January, he predicted a new historical maximum for BTC by the end of the month. Although this bold forecast did not materialise in January, Lee continues to adhere to a bullish scenario and anticipates a "very strong second half of 2026" for cryptocurrencies following a period of volatile consolidation in the first half of the year. Several banks have also raised their price targets: for instance, Standard Chartered analysts indicated that, if circumstances develop favourably, Bitcoin could exceed $150,000 within the next 12–18 months. Other forecasts foresee Ethereum reaching new highs (some experts mention a range of $7,000–10,000 over the next two years), considering the effects of reduced ETH issuance and the expansion of its application areas.
Of course, expert opinions vary regarding growth rates. The more conservative camp warns that heightened regulation and potential slowdowns in the global economy may limit cryptocurrency growth in the short term. However, even they acknowledge that fundamental drivers—such as increased blockchain adoption, a growing number of users, and the limited supply of Bitcoin—create a solid foundation for the long-term appreciation of digital assets. Consequently, the consensus is that the market is entering a more mature phase, where volatility will reduce somewhat and growth will be more gradual compared to previous cycles. Investors are advised to exercise caution in the short term, but remain strategically optimistic regarding the role of cryptocurrencies in the global economy.
Top 10 Most Popular Cryptocurrencies
As of the morning of 1 February 2026, the ten most popular cryptocurrencies by market capitalisation include the following digital assets:
- Bitcoin (BTC) – the first and largest cryptocurrency. BTC is trading around $78,000 after a recent period of volatility; its capitalisation is approximately $1.75 trillion (≈60% of the entire market).
- Ethereum (ETH) – the leading altcoin and primary platform for smart contracts. ETH's price is near $2,800, which is below its historical peak but reflects stable demand; its capitalisation is around $340 billion (≈12% of the market).
- Tether (USDT) – the largest stablecoin pegged to the US dollar at a 1:1 ratio. USDT is widely used for trading and settlements in the crypto market, with a market capitalisation of approximately $150 billion; the coin consistently holds a price of $1.00.
- Ripple (XRP) – the token of the Ripple payment network for instant cross-border settlements. XRP is trading around $2.50, with a market capitalisation of approximately $130 billion. Legal clarity regarding XRP's status in the US, secured by Ripple's legal victory, has helped the token strengthen its position among industry leaders.
- Binance Coin (BNB) – the coin from the largest cryptocurrency exchange, Binance, and the native token of the BNB Chain. BNB's price is around $600 (capitalisation approximately $90 billion). Despite ongoing regulatory pressure surrounding Binance, the token remains in the top 5 due to its broad applications in the exchange ecosystem and DeFi services.
- Solana (SOL) – a high-performance blockchain platform for decentralised applications. SOL is trading around $150 per coin (capitalisation ~$70 billion), recovering a significant portion of its 2022 decline. Interest in Solana is supported by an increasing number of projects on its network and expectations for ETF approval for SOL.
- USD Coin (USDC) – the second-largest stablecoin backed by US dollar reserves from Circle. USDC's price consistently holds at $1.00, with capitalisation of around $60 billion. USDC is favoured by institutional investors and DeFi protocols due to its high transparency of reserves.
- Cardano (ADA) – a blockchain platform focusing on a scientific approach to development. ADA is trading around $0.80 (market capitalisation ~$28 billion) after a recent recovery in price. Cardano attracts attention due to plans for ETF implementation on this asset and the activity of a community that believes in the project's long-term growth.
- TRON (TRX) – a platform for smart contracts and decentralised applications, particularly popular in Asia. TRX is holding around $0.33; market value ~ $30 billion. TRON remains in the top 10, driven by its use for issuing stablecoins (a significant portion of USDT circulates on the Tron blockchain).
- Dogecoin (DOGE) – the most well-known meme cryptocurrency, originally created as a joke. DOGE is trading around $0.18 (capitalisation ~$27 billion), supported by a loyal community and periodic attention from high-profile figures. Despite high volatility, Dogecoin remains among the largest coins, demonstrating remarkable resilience in investor interest.
Cryptocurrency Market on the Morning of 1 February 2026
Major cryptocurrency prices:
- Bitcoin (BTC): $78,940
- Ethereum (ETH): $2,795
- Ripple (XRP): $2.48
- Binance Coin (BNB): $592
- Solana (SOL): $146
- Cardano (ADA): $0.81
Market Indicators:
- Total cryptocurrency market capitalisation: $2.95 trillion
- Bitcoin's share: 59.2%
- Fear and Greed Index: 30 (fear)
Leaders in change over the past day:
- Increase: Polygon (MATIC) — +4.3%
- Decrease: Conflux (CFX) — -5.7%
Analysis: Bitcoin and Ethereum are demonstrating relative stability around current levels, with the sentiment index residing in the moderate fear zone, reflecting caution among some investors after the recent downturn. The local growth leader MATIC indicates interest in Ethereum scaling solutions amidst positive technical updates of the project. Concurrently, the decline in Conflux's price may be attributed to profit-taking by traders or unfavourable news regarding the project. Overall, the market is in a phase of consolidation: many major coins are holding their positions, while investors are awaiting new drivers, assessing the balance of risks and growth potential over the coming weeks.
