Current Cryptocurrency News as of February 4, 2026: Bitcoin Attempts to Stabilize After January Sell-off, Major Altcoins Remain at Multi-Month Lows, Regulators Intensify Development of New Market Rules, Overview of the Top 10 Popular Cryptocurrencies, and Industry Prospects.
Market Overview: Attempts at Stabilization After the Crash
As of the morning of February 4, 2026, the global cryptocurrency market is showing timid signs of recovery following a recent downturn. After its worst month in some time (January), during which the industry's total market capitalization shrank by about a quarter from autumn peaks, a relative calm has emerged. Bitcoin (BTC) is holding in the range of ~$78,000–80,000, bouncing back from a local low of around $75,000, which acted as a psychologically significant support level. However, the overall cryptocurrency market capitalization is still estimated at less than $3 trillion (compared to over $4 trillion at its peak), and investor sentiment remains cautious, with the "fear and greed" index firmly in the "fear" zone. Traders continue to carefully assess macroeconomic risks and regulatory news before returning to active purchases of digital assets.
Bitcoin: Consolidation at a Key Level
The first cryptocurrency is trying to establish itself after a significant correction. Early in the week, the price of Bitcoin dipped to around ~$75,000—the lowest level since spring 2025—but subsequently, “digital gold” bounced back from that mark. Bitcoin is now consolidating around $80,000, approximately 35–40% lower than its historical peak (nearly $125,000 reached in October 2025). Bitcoin's dominance in the market has once again exceeded 60%, reflecting a shift of capital from riskier altcoins to the flagship asset. Experts note that even after a significant decline, Bitcoin remains one of the largest financial assets in the world, and the majority of long-term holders ("whales") are in no rush to part with their coins. On the contrary, some large investors view the current levels as a strategic opportunity: publicly traded companies that previously increased their BTC reserves are signaling a readiness to buy the dip, confident in Bitcoin's long-term value. Such behavior from "smart money" supports confidence in Bitcoin's fundamental qualities, despite high short-term volatility.
Ethereum: Price Pressure Amid Strong Fundamentals
The second-largest cryptocurrency, Ethereum (ETH), is also under pressure following the market trend. Since the autumn of 2025, the price of ETH has dropped nearly 50% from its peak (~$5,000), briefly falling below $2,300 during the sell-off this week. Currently, Ether is trading in the range of ~$2,400–2,500, which is significantly below its historical highs; however, the fundamental indicators of the network continue to inspire optimism. In January, Ethereum developers successfully completed another protocol upgrade aimed at enhancing blockchain scalability, and the Layer-2 solution ecosystem continues to grow, reducing the load on the main network and lowering fees. A substantial portion of ETH coins remains locked in staking or held long-term, limiting supply in the market. Despite a temporary outflow of capital from Ethereum funds during January's downturn, institutional interest in ETH remains: in 2025, the first spot ETFs for Ethereum launched in the U.S., attracting billions of dollars, and many large investors continue to include Ethereum in their portfolios alongside Bitcoin. Thus, despite price declines, Ethereum maintains a key role in the industry (DeFi, NFT, dApps) and strong fundamental positions, supporting positive expectations in the long term.
Altcoins: Trading at Multi-Month Lows
A wide range of top-10 altcoins continues to trade at reduced levels following January's crash. Many leading altcoins have lost 30–50% of their value from recent highs. The risk-off wave has forced investors to reduce positions in the most volatile tokens, with a significant amount of capital flowing into stable assets or exiting the crypto market altogether. This is reflected in the increase in the share of stablecoins and the strengthening of Bitcoin's dominance. Bitcoin's share of total market capitalization has once again surpassed 60%, indicating the flow of funds from altcoins to the most reliable digital asset.
Just recently, some coins were showing outperforming dynamics amid positive news; however, the overall downward trend negated these achievements. For example, the XRP token (Ripple) rose to around ~$3 following the company's legal victory last summer but has now retraced approximately half and is currently trading at about $1.5. A similar situation exists with Solana (SOL): in the autumn of 2025, SOL surged above $200 thanks to recovery in its ecosystem, yet has now corrected to slightly over $100. The Binance Coin (BNB) token reached ~$880 at its peak in 2025, remaining resilient even under regulatory pressures surrounding the Binance exchange, but has since dropped to around $500 following the market. Other significant altcoins—Cardano (ADA), Dogecoin (DOGE), Tron (TRX)—are also far below their historical highs, although they retain their positions in the top ten due to still high capitalization and community support. In a climate of heightened uncertainty, many traders prefer to ride out the turbulence by holding stablecoins (USDT, USDC, etc.) or Bitcoin. The inflow of new capital into the altcoin segment remains limited until the macroeconomic situation clarifies. A return of interest in altcoins is possible after Bitcoin stabilizes and risk appetite recovers; however, caution and a preference for the most reliable assets predominate in the short term.
Regulation: Aiming for Clear Rules
In the wake of the rapid growth of the industry, governments and regulators worldwide are stepping up efforts to develop unified rules for the cryptocurrency market. Key regulatory directions at the beginning of 2026 include:
- United States: In the United States, the topic of regulating digital assets has elevated to a level of dialogue between the government and the industry. The administration is organizing meetings with banks and crypto companies, striving to reach a compromise and establish a comprehensive regulatory framework (including the Digital Asset Market Clarity Act). Stricter requirements for stablecoin issuers (potentially involving 100% reserves to back their issuance) are also being discussed. Meanwhile, regulators are continuing targeted oversight measures: the SEC and CFTC have successfully shut down several fraudulent schemes by the end of 2025, and legal precedents (such as Ripple's victory in the XRP case) are gradually clarifying the legal status of key tokens. In some states, independent initiatives are being proposed, including the creation of their own "Bitcoin reserves" to support innovation.
- Europe: As of January 2026, the European Union has implemented the EU-wide MiCA regulation, which establishes transparent rules for the circulation of crypto assets across all EU countries. In addition, the implementation of the DAC8 reporting standard is in preparation, which will require crypto platforms to report user transactions to tax authorities (coming into effect later in 2026). These measures aim to unify oversight and reduce uncertainty for businesses and investors in the European crypto market.
- Asia: Asian financial centers are seeking a balance between controlling the crypto industry and attracting innovation. Japan plans to soften the tax burden on cryptocurrency transactions (considering reducing the trading tax rate to ~20%) and is preparing to launch its first crypto-ETFs, solidifying the country's position as a progressive digital hub. Hong Kong, Singapore, and the UAE are introducing licensing regimes for crypto exchanges and blockchain projects, allowing for the simultaneous attraction of high-tech companies and increased investor protection. The global trend is clear: governments are transitioning from bans and disparate measures to integrating the crypto market into the existing financial system through clear regulations and licenses. As unified norms emerge, institutional trust in the crypto industry is expected to grow, which will positively impact the market in the long term.
Institutional Trends: A Pause and Long-Term Approach
Following record investments from institutions in cryptocurrencies last year, the beginning of 2026 has been characterized by a more cautious stance among major players. Sharp price fluctuations in January prompted a temporary outflow of funds from certain crypto funds and crypto-ETFs: managers took profits and reduced risks while awaiting market stabilization. According to industry analysts, over $1 billion was withdrawn from American spot Bitcoin ETFs in the last weeks of January, and outflows from Ethereum funds totaled hundreds of millions of dollars—an indicator of increased caution among "smart money." Nonetheless, long-term interest in digital assets has not dissipated. Major financial companies continue to pursue strategic projects in the crypto sphere—implementing blockchain solutions, developing infrastructure for the storage and servicing of digital assets, and investing in relevant startups. Notably, the exchange operator Nasdaq recently expanded trading capabilities for crypto derivatives, lifting certain restrictions and thus bringing the conditions for working with crypto-ETFs closer to traditional instruments. Public companies holding Bitcoin on their balance sheets are not selling assets even amid price declines, and some, as already noted, are ready to increase positions at attractive prices. It is expected that as macroeconomic uncertainty decreases and regulatory rules clarify, institutional investors may resume their cryptocurrency investments at an accelerated pace.
Top 10 Most Popular Cryptocurrencies
As of today, the top 10 largest digital currencies by market capitalization are as follows:
- Bitcoin (BTC) – the first and largest cryptocurrency, currently dominating around 60% of the entire market. BTC trades around $80,000 after a recent correction, remaining for many investors the primary "digital gold" and a core asset in crypto portfolios.
- Ethereum (ETH) – the second-largest crypto asset and leading smart contract platform. The current ETH price is approximately $2,400; Ether underpins the DeFi, NFT ecosystems, and numerous decentralized applications, maintaining key importance for the industry.
- Tether (USDT) – the largest stablecoin pegged to the U.S. dollar at a 1:1 ratio. USDT is widely used for trading and storing funds, ensuring market liquidity; its market capitalization (approximately $80 billion) reflects high demand in the crypto ecosystem.
- Binance Coin (BNB) – the native token of the leading cryptocurrency exchange Binance and the BNB Chain blockchain platform. It offers discounts on fees and serves as fuel for many DeFi applications. After the correction, BNB is priced around $500; despite regulatory pressures surrounding Binance, the coin remains in the top five due to its wide range of applications.
- XRP (Ripple) – the token of the Ripple payment network for fast international transfers. XRP is trading around $1.5 (approximately half of its multi-year high); due to legal clarification of its status in the U.S. and interest from funds, this token maintains its position among the largest cryptocurrencies.
- USD Coin (USDC) – the second most popular stablecoin (issuer Circle), fully backed by dollar reserves. USDC is known for its transparency and regulatory compliance; it is actively used in trading and DeFi (market capitalization of about $30 billion).
- Solana (SOL) – a high-performance blockchain platform known for low fees and fast transaction processing. In 2025, SOL rose above $200, attracting investor attention; however, the price has since corrected to slightly over $100 after the market downturn, but Solana remains among the leading protocols for DeFi and Web3.
- Cardano (ADA) – a cryptocurrency of the Cardano platform, developing through a scientific approach. ADA stays in the top 10 due to its large market capitalization and active community, although its price (~$0.50) is far below historical records. The project continues technical updates, laying the groundwork for future growth.
- Dogecoin (DOGE) – the most renowned "meme" crypto asset, which started as a joke but has transformed into a mass phenomenon. DOGE is around $0.10; the coin is supported by a loyal community and periodic attention from famous figures. Despite high volatility, Dogecoin remains in the top 10, demonstrating remarkable resilience in investor interest.
- Tron (TRX) – the token of the Tron platform, focused on decentralized applications and digital content. TRX (~$0.25) is in demand for the issuance and transfer of stablecoins (a significant portion of USDT circulates on the Tron blockchain due to low fees), helping it maintain a place among other large coins in the top ten.
Prospects and Expectations
In the near term, the situation in the cryptocurrency market remains uncertain. Investor sentiments are still leaning toward caution: the "fear and greed" index is in the "fear" zone, indicating prevailing negative expectations. Analysts warn that if macro-influences maintain pressure, a new wave of price decline may occur. In particular, some experts do not rule out a drop in Bitcoin to $70,000–75,000 if the current support levels do not hold. Volatility in recent weeks remains high, and a series of margin position liquidations remind market participants of the importance of strict risk management when dealing with crypto assets.
Nonetheless, many specialists hold a positive outlook for the medium and long-term prospects of the industry. Historically, every deep decline has cleared the market of excessive speculation and laid the groundwork for a new growth cycle. The technological development of the ecosystem does not stop for a day: innovative projects emerge, infrastructure improves, and traditional financial institutions integrate blockchain into their businesses. Major global corporations remain interested in cryptocurrencies—on the contrary, they view the current correction as an opportunity to strengthen their positions. Following the tumultuous rally of 2025, a natural phase of cooling and consolidation has ensued; it is anticipated that as the macroeconomic situation improves and regulatory uncertainties ease, the market may resume its upward trajectory. Fundamental demand factors for digital assets—from the mass adoption of distributed ledger technology to the growth of decentralized finance (DeFi) and the evolution of the Web3 concept—continue to apply. According to several investment firms, under favorable conditions, Bitcoin is capable of not only recovering above the psychological mark of $100,000 but also reaching new records in the next year or two. Certainly, much depends on regulatory and central bank policies: if the Federal Reserve softens its stance amid declining inflation, and legislative initiatives close legal gaps, capital inflow into crypto assets may accelerate significantly. For now, investors are advised to combine vigilance with a strategic view of the market. High volatility is an inherent characteristic of cryptocurrency development, but for long-term investors, the current correction may present new entry points. Digital assets, despite the downturn, continue to solidify within the global financial system, and their role in the long term is likely to grow.
