Cryptocurrency News for Saturday, January 31, 2026: Bitcoin Consolidates After Correction, Ethereum and Altcoins Under Pressure, Investor Sentiments and Institutional Trends in the Crypto Market.
The global cryptocurrency market is showing continued correction as it approaches the end of the week amid ongoing macroeconomic uncertainty. Leading digital assets have significantly declined in value: Bitcoin (BTC) is consolidating around the $85,000 mark after recent peaks, and Ethereum (ETH) has fallen below $3,000 (to around $2,800). The total market capitalization of cryptocurrencies has shrunk to approximately $2.8 trillion, and the Fear and Greed Index has moved into the Fear zone, reflecting investor caution. Market participants are assessing how deep the current downturn will be and which factors will dictate future price movements.
Bitcoin: Correction After Record Rally
Bitcoin is trading around $85,000 this week, having retreated from an all-time high reached in early January (approximately $100,000). Over the past few days, BTC continued its downward trend, experiencing nearly two weeks of consecutive declines—the longest slump in over a year. The main driver of this decline has been a general deterioration in risk appetite in global markets: news of escalating trade relations between the U.S. and Europe (the U.S. ultimatum over Greenland with threats of tariffs) caused sell-offs in the crypto market as well. Over the past few days, margin positions worth over $2 billion have been liquidated, further intensifying the asset's downward movement. The key level to watch now is the zone around $80,000—maintaining this level is critical to avoid a deeper fall (potentially down to $70,000–$75,000, according to several analysts). At this stage, BTC continues to show high correlation with risk assets and is temporarily failing to live up to its status as "digital gold": in times of uncertainty, investors prefer to move into tangible safe-haven assets.
Altcoin Market: Widespread Decline
The altcoin market is also experiencing a broad downturn. Ethereum (ETH), the second-largest cryptocurrency by market capitalization, has dropped more than 3% in the last 24 hours and is now below $3,000, highlighting altcoins' vulnerability to a general market correction. The vast majority of leading tokens are in the red zone: over 90 out of the top 100 cryptocurrencies have decreased in value in recent days. For instance, XRP (the token of Ripple) has fallen to around $1.80 amid ongoing sell-offs in recent weeks; BNB has declined to approximately $610, losing about 5% in the last 24 hours; Solana (SOL) has retreated to approximately $120, despite the fact that the share of staked coins in its network has reached a record ~70%. Many investors are partially reallocating funds into stablecoins (digital equivalents of the US dollar), increasing the share of such coins in circulation amidst market turbulence. Overall, the further dynamics of the altcoin sector largely depend on Bitcoin's behavior: if the flagship stabilizes at current levels, the alternative coin market may find a local bottom and transition to recovery.
Top 10 Most Popular Cryptocurrencies
The top 10 largest and most popular cryptocurrencies as of today include the following digital assets:
- Bitcoin (BTC) – the leading cryptocurrency with a dominant market share (around 60% of total capitalization). Current price ~ $85,000; after a powerful rally in 2025, Bitcoin is experiencing a correction from its historical highs but still confidently holds the number one position among digital assets.
- Ethereum (ETH) – the second-largest crypto asset, a foundational platform for smart contracts (decentralized finance, NFTs, and other applications). The current price is around $2,800; Ethereum is under pressure following Bitcoin but retains a key role in the industry. Many experts anticipate renewed interest in ETH in 2026 due to ongoing developments in the ecosystem and network upgrades.
- Tether (USDT) – the largest stablecoin pegged to the US dollar (1 USDT ≈ $1). Capitalization of around $80 billion; USDT is widely used by investors to preserve capital during heightened volatility—in periods of uncertainty, funds flow into this digital dollar equivalent, ensuring relative stability in portfolios.
- BNB (BNB) – the native token of Binance's ecosystem (the largest cryptocurrency exchange and blockchain platform BSC). Current price around $620; thanks to its wide application on the Binance platform, BNB firmly holds a place in the top five, although it has also seen declines in recent days amid 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 (capitalization around $50–52 billion) and widely used in trading operations and DeFi platforms, remains one of the most reliable digital dollars.
- XRP (XRP) – a cryptocurrency associated with fintech company Ripple (solutions for international payments). Current price around $1.80; following Ripple's landmark victory over the SEC in 2025, XRP significantly rose and re-entered the top tier, although the current market correction has partially offset this increase in value.
- Solana (SOL) – a rapidly growing blockchain platform focused on high transaction speed and volume. Current price around $120; Solana maintains a top-10 position due to its developing DeFi/NFT ecosystem. A record ~70% of all SOL coins are currently involved in staking, reflecting a high level of community trust in the project.
- Tron (TRX) – a popular platform in Asia for smart contracts and digital content. Current TRX price around $0.28; due to active use of the Tron network (including for stablecoin issuance and rapid fund transfers with minimal fees), this token remains among the largest cryptocurrencies globally.
- Dogecoin (DOGE) – a "meme" cryptocurrency initially created as a joke but gaining mass popularity. Current price around $0.10; despite its humorous origin, Dogecoin remains one of the most capitalized coins. However, its price is characterized by heightened volatility and is significantly influenced by community sentiments and activity.
- Cardano (ADA) – a blockchain platform for smart contracts, evolving based on academic research and phased protocol updates. ADA is currently trading around $0.32; the project continues its technical development (recent upgrades have improved the network's scalability), 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 U.S. and Europe has become a key trigger for the recent sell-off: at the economic forum in Davos, the U.S. president issued an ultimatum, "Greenland or tariffs," threatening to impose tariffs, pushing transatlantic relations to the brink of a trade war. In response, the European Union has stated its readiness to implement strict countermeasures, exacerbating investors' concerns regarding the global ramifications of the conflict. As a result of this geopolitical noise, market participants began to exit risk assets (such as stocks and cryptocurrencies) in favor of safe-haven instruments.
Additional pressure is being created by monetary factors. The yields on government bonds in the U.S. and Europe have risen to multi-year highs, signaling potential tightening of financial conditions. Classical "safe havens" are showing capital inflows: the price of gold has hit a historical peak, exceeding $4,600 per ounce, while silver is also reaching record highs. Concurrently, the VIX volatility index has reached a two-month peak, reflecting heightened uncertainty in traditional markets. The combination of these macro risks has triggered a "risk-off" mode, wherein crypto assets temporarily lose appeal in the eyes of global investors.
Investor Sentiment and Volatility
In light of the aforementioned events, market sentiments in the crypto industry have noticeably deteriorated. The sentiment index (Crypto Fear & Greed Index) remains in the Fear zone, indicating a predominance of caution among investors. Since the beginning of the current week, the total cryptocurrency market capitalization has shrunk by about $200 billion, and price volatility has increased. According to industry analysts, in just one day of sharp price declines, liquidations exceeding $1.7 billion have occurred—this points to 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, awaiting stabilization in the situation.
Institutional Interest and Adoption
Despite the current volatility, institutional interest in digital assets remains historically high. Major financial institutions continue to view the downturn as an opportunity for long-term investments. According to investment funds, recent weeks have seen a net inflow of capital into cryptocurrency products, although the pace has slowed. Also, the active adoption of crypto solutions into the traditional financial system is notable: new cryptocurrency ETFs and exchange-traded products are receiving regulatory approval and launching on major exchanges, expanding investor access to the market. The participation of tech giants and banks in blockchain projects is growing, underscoring the long-term confidence of institutions in the potential of cryptocurrencies and distributed ledger technology.
Outlook and Predictions
The current correction raises questions for investors regarding the market's future prospects: will it be a short-term breather within a continuing bullish trend, or does it signal the start of a more prolonged downturn? Opinions among experts are divided. Some analysts view the ongoing situation as a healthy correction following rapid growth, expecting that with stabilization of the macroeconomic environment, Bitcoin and leading altcoins will resume their upward momentum in the coming months. Some optimistic forecasts still suggest Bitcoin could reach new heights by the end of 2026 (targets of $150,000–200,000 for BTC are being discussed), considering the growing recognition of cryptocurrencies worldwide.
Other experts urge caution, pointing to persistent risks. They believe that increased regulatory pressure or further deterioration in the global economy could prolong the market's consolidation phase or even lead to deeper price declines. In the short term, traders are closely monitoring key support levels—specifically, it is crucial for Bitcoin to stay above $75,000–$80,000 to maintain chances of recovery. Attention is also focused on external factors: the monetary policy of leading central banks, geopolitical news, and the launch of new financial products in the crypto market.
Overall, the long-term outlook for the cryptocurrency industry remains positive. Many market participants note that each cycle of correction is accompanied by a cleansing of the market from speculative capital and lays the groundwork for a new growth phase. Investors are advised to adopt a balanced strategy and diversification: the current low price levels may offer entry opportunities, but risk management and careful analysis remain key success factors in the dynamic cryptocurrency market.
