Current Cryptocurrency News for Thursday, February 5, 2026: Bitcoin Consolidates Around $73K After January Crash, Major Altcoins at Lows, Central Bank and Regulatory Activity Impacts Market Sentiment, Review of Top 10 Popular Cryptocurrencies and Market Outlook.
Market Overview: Consolidation Before Major Events
As of the morning of February 5, 2026, the global cryptocurrency market is showing cautious stabilization after a recent decline. The January sell-off was one of the sharpest in recent times: the total industry capitalization dropped approximately a quarter from its autumn peaks, and only at the beginning of February did a relative calm start to emerge. Bitcoin (BTC) is holding below ~$80,000, having recovered from a local bottom around $75,000, which acted as an important psychological support level. The total capitalization of the crypto market is still below $3 trillion (compared to over $4 trillion at its peak), and investor sentiments remain restrained: the "fear and greed" index has settled in the "fear" zone. Market participants are closely monitoring macroeconomic factors and regulatory news (including upcoming central bank decisions) before resuming active purchases of digital assets.
Bitcoin: Holding Key Level
The first cryptocurrency is trying to establish itself after a deep correction. Earlier this week, Bitcoin's price dropped to ~$72,000 – the lowest since spring 2025 – but then the "digital gold" bounced back from this mark. BTC is now consolidating around $73,000, approximately 35–40% below its all-time high (nearly $125,000 reached in October 2025). Bitcoin’s dominance in the market has exceeded 60% again, reflecting the capital flow from riskier altcoins into the flagship asset. Experts note that even after a significant downturn, Bitcoin remains one of the largest financial assets in the world, and most long-term holders ("whales") are in no rush to part with their coins. On the contrary, several large investors view current levels as a strategic opportunity: publicly traded companies that previously accumulated BTC reserves signal their readiness to buy more on price dips, confident in Bitcoin's long-term value. This behavior of "smart money" reinforces confidence in BTC's fundamental qualities, despite high short-term volatility.
Ethereum: Price Pressure Amid Strong Fundamentals
The second-largest cryptocurrency, Ethereum (ETH), also remains under pressure, following the rest of the market. Since autumn 2025, the price of ETH has decreased nearly 50% from its peak (~$5,000), and this week it temporarily dropped below $2,300 amidst the sell-off. Currently, ETH is trading in the range of ~$2,400–2,500, remaining significantly below its all-time high; however, the fundamental indicators of the network continue to inspire optimism. In January, Ethereum developers successfully executed another protocol upgrade aimed at increasing blockchain scalability, and the ecosystem of Layer-2 solutions continues to expand, reducing the load on the main network and fees. A significant portion of ETH is still locked in staking or held long-term, limiting market supply. Despite the temporary capital outflow from Ethereum funds during the January downturn, institutional interest in ETH remains: in 2025, the first spot Ethereum ETFs emerged in the U.S., attracting billions of dollars, and many large investors continue to include Ethereum in their portfolios alongside Bitcoin. Thus, even amid price declines, Ethereum retains a key role in the industry (from DeFi and NFTs to decentralized applications) and has strong fundamental positions, supporting positive long-term expectations.
Altcoins: At Minimal Levels Awaiting Momentum
Most leading altcoins in the top 10 continue to trade at reduced levels following the January crash. Many large coins have lost 30–50% of their value from recent highs. The risk-off wave has prompted investors to cut positions in the most volatile tokens, and a significant portion of capital has flowed into more stable assets or exited the crypto market altogether. This is reflected in the increase in the share of stablecoins and the enhancement of Bitcoin’s dominance: BTC's share in total capitalization has again surpassed 60%, indicating a capital flow from altcoins to the most reliable digital asset.
Previously, certain tokens demonstrated leading dynamics amid positive news; however, the overall downward trend overshadowed these achievements. For example, the XRP token (Ripple) surged to ~$3 after Ripple's loud court victory last summer but has since retreated to around $1.5 by early February, approximately halving in value. A similar situation exists for Solana (SOL): in autumn 2025, SOL's price soared above $200 due to the ecosystem's recovery, but it has now corrected to just above $100. The Binance Coin (BNB) token reached ~$880 at its peak in 2025, remaining resilient even under regulatory pressure surrounding Binance, but has fallen to ~$500 since January, following the market. Other notable altcoins – Cardano (ADA), Dogecoin (DOGE), Tron (TRX) – are also significantly below their historical peaks, although they maintain positions in the top ten due to still large capitalization and community support. Amid heightened uncertainty, many traders prefer to weather the turbulence, sticking to stablecoins (USDT, USDC, and others) or Bitcoin. The influx of new capital into the altcoin segment remains limited until the macroeconomic situation clarifies. A return of interest in alternative cryptocurrencies is possible after Bitcoin stabilizes and investor sentiment improves, but for the foreseeable future, caution and a preference for the most reliable assets dominate.
Regulation: Moving Toward Unified Rules
Against the backdrop of the rapid growth of the industry, governments and regulators around the world have intensified efforts to develop unified rules for the crypto market. Key areas of regulation at the beginning of 2026 include:
- United States: In the United States, the issue of regulating digital assets has reached a high level of dialogue between the government and the industry. The administration is holding meetings with banks and crypto companies, striving to reach a compromise and formulate a comprehensive regulatory framework (including the discussed Digital Asset Market Clarity Act). Stricter requirements for stablecoin issuers (up to 100% reserve backing for their issuance) are also under consideration. Simultaneously, regulatory bodies continue targeted actions: at the end of 2025, the SEC and CFTC achieved the closure of several fraudulent schemes, while legal precedents (e.g., Ripple's victory in the XRP case) are gradually clarifying the legal status of key tokens. Certain states are undertaking their own initiatives, including proposals to create regional "Bitcoin reserves" to support innovation.
- Europe: As of January 2026, the European Union implemented a pan-European regulation known as MiCA, establishing uniform and transparent rules for the circulation of cryptoassets across all EU countries. Additionally, preparation is underway for the introduction of the DAC8 standard, which will require crypto platforms to report users' transaction data to tax authorities (this measure will come into effect later in 2026). These steps are aimed at unifying oversight and reducing 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 ease the tax burden on cryptocurrency transactions (discussing a reduction in the trading tax rate to about 20%) and is preparing to launch the first crypto ETFs, strengthening the country's status as a progressive digital hub. In Hong Kong, Singapore, and the UAE, licensing regimes for crypto exchanges and blockchain projects are being introduced – this allows for attracting high-tech companies while enhancing investor protection. The global trend is evident: instead of bans and fragmented actions, governments are moving towards integrating the crypto market into the existing financial system through clear rules and licenses. As such unified norms emerge, trust in the crypto industry among large institutional players is increasing, which positively impacts the market in the long term.
Institutional Investors: Pause and Strategic Outlook
Following a record influx of institutional capital into cryptocurrencies last year, the beginning of 2026 has seen a more cautious position from major players. The sharp price fluctuations in January provoked a temporary outflow of funds from some crypto funds and ETFs: many managers took profits and reduced risks while waiting for market stabilization. According to industry analysts, in the last weeks of January, over $1 billion was withdrawn from American spot Bitcoin ETFs, while hundreds of millions of dollars flowed out of Ethereum funds – a sign of increased caution from "smart money." Nevertheless, long-term interest in digital assets has not disappeared. Major financial companies continue strategic projects in the crypto sphere: implementing blockchain solutions, developing storage and servicing infrastructure for digital assets, and investing in relevant startups. For instance, the operator of the Nasdaq exchange recently expanded trading capabilities for crypto derivatives by lifting several restrictions, thereby bringing the conditions for working with crypto ETFs closer to traditional markets. Publicly traded companies holding Bitcoin on their balance sheets are not selling the asset even during price dips, and some, as noted earlier, are ready to increase their positions at attractive prices. As macroeconomic uncertainty decreases and regulatory rules clarify, institutional investors may resume increasing their crypto investments at an accelerated pace.
Top 10 Most Popular Cryptocurrencies
As of today, the following assets are included in the top ten largest digital currencies by market capitalization:
- Bitcoin (BTC) – the first and largest cryptocurrency, currently dominating about 60% of the entire market. BTC is trading below $80,000 after a recent correction, remaining a primary "digital gold" and core asset in many crypto portfolios.
- Ethereum (ETH) – the second-largest crypto asset and leading smart contract platform. The current price of ETH is around $2,400; Ether underlies DeFi, NFT ecosystems, and numerous decentralized applications, retaining key significance 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 settlements, providing liquidity in the market; its capitalization (around $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 provides discounts on fees and serves as "fuel" for many DeFi applications. After the correction, BNB is priced at about $500; despite regulatory pressures surrounding Binance, the coin remains in the top 5 due to its broad utility.
- XRP (Ripple) – the token of the Ripple payment network for fast international transfers. XRP is trading at around $1.5 (approximately half its multi-year high); thanks to legal clarity regarding its status in the U.S. and interest from funds, this token retains its place 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 compliance with regulations; it is actively used in trading and DeFi (capitalization around $30 billion).
- Solana (SOL) – a high-performance blockchain platform known for low fees and fast transaction processing. In 2025, SOL climbed above $200, attracting investor attention; however, the price has since corrected to just above $100 after the market downturn, yet Solana remains one of 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 its large market capitalization and active community, although its price (~$0.50) is significantly below historical records. The project continues technical updates, laying the foundation for future growth.
- Dogecoin (DOGE) – the most famous "meme" crypto asset that started as a joke but turned into a mass phenomenon. DOGE is priced at around $0.10; the coin is supported by a dedicated community and periodic attention from celebrities. Despite high volatility, Dogecoin continues to rank 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 issuing and moving stablecoins (a significant portion of USDT operates on the Tron blockchain thanks to low fees), helping it maintain a position among other large coins in the top tier.
Outlook and Expectations
In the near term, the situation in the cryptocurrency market remains uncertain. Investor sentiment still leans toward caution: the "fear and greed" index is in the "fear" zone, reflecting prevailing negative expectations. Analysts warn that if macro pressures continue, another wave of price declines is possible. In particular, some experts do not rule out Bitcoin falling to $70,000–75,000 if current support levels do not hold. Volatility remains high in recent weeks, and the series of liquidations of margin positions remind market participants of the importance of strict risk management when working with crypto assets.
Nevertheless, many specialists view the mid-term and long-term prospects of the industry positively. Historically, each deep decline has cleared the market of excess speculation and laid the groundwork for a new growth phase. The technological development of the ecosystem does not stop for a day: innovative projects emerge, infrastructure is refined, and traditional financial institutions increasingly integrate blockchain into their business. Major global corporations do not lose interest in cryptocurrencies – on the contrary, they view the current correction as an opportunity to strengthen their positions.
Following a turbulent rally in 2025, a natural phase of cooling and consolidation has arrived. It is expected that with improvements in the macroeconomic environment and the elimination of regulatory uncertainty, the market will resume its upward movement. Fundamental demand factors for digital assets – from widespread adoption of distributed ledger technology to the expansion of decentralized finance (DeFi) and the development of the Web3 concept – continue to play a role. According to several investment firms, under favorable conditions, Bitcoin is capable not only of recovering above the psychological level of $100,000 but also of setting new records in the next one to two years. Of course, much depends on the actions of regulators and central banks: if the Federal Reserve eases monetary policy in the face of slowing inflation, and legislative initiatives address legal gaps, the inflow of capital into crypto assets could significantly accelerate.
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 provide new entry points. Digital assets, despite the temporary decline, continue to establish a foothold in the global financial system, and their role in the global economy is likely to grow in the long term.
