Current Cryptocurrency News for Sunday, February 1, 2026: The Dynamics of Bitcoin and Ethereum, Altcoin Market Situation, Top-10 Cryptocurrency Review, Institutional Trends, and Global Factors Affecting the Crypto Market.
As of the morning of February 1, 2026, the cryptocurrency market is displaying stabilization following heightened volatility at the end of January. Bitcoin's price, after a pronounced correction in the middle of the week, has rebounded to around $78,000. Major altcoins led by Ethereum are also recovering from the downturn: Ether has returned above $2,800, and several other top assets have gained 5–10% from recent local lows. The total market capitalization of cryptocurrencies amounts to approximately $3.0 trillion, with Bitcoin's market share holding steady at around 59%. Investor sentiment remains moderately optimistic: despite macroeconomic risks, institutional players are continuing to increase their investments in cryptocurrencies, signaling trust in this asset class.
Bitcoin Recovers After Correction
Bitcoin (BTC) is showing signs of stabilization after a recent decline: at the end of January, the price of the first cryptocurrency dropped below $80,000, nearing a critical support level, before buy signals were activated at lower levels. At the time of publication, BTC is trading within a range of approximately $78,600–79,000, confirming the current market quotes below $80,000, reflecting pressure on the market from macroeconomic factors and investor sentiment. The current value is notably lower than the local highs in January, which were around $95,000, but remains significantly above the levels at the beginning of last year when BTC traded much lower. Bitcoin’s market capitalization is nearing $1.6–1.7 trillion, with BTC's market share remaining dominant.
The primary reasons for the recent decline are both technical and fundamental in nature. Heightened macroeconomic uncertainty and expectations of tighter monetary policy in the U.S. and Europe have prompted capital outflows from riskier assets, including cryptocurrencies. However, in the price range of about $78,000–80,000, we observed strong demand from large holders and long-term investors, who perceive 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 in conditions of external uncertainty and indicating potential for further consolidation or trend reversal.
Ethereum Holds Its Ground
The second-largest cryptocurrency, Ethereum (ETH), is demonstrating relative resilience. At the peak of January's rally, Ether rose above $3,100, but subsequently corrected alongside Bitcoin, temporarily dropping to $2,700. Currently, Ethereum is trading around $2,800–2,900, demonstrating an ability to hold key support levels. The market capitalization of ETH is approximately $340 billion (~12% of the market), and the network continues to attract high user activity due to its leading role in smart contracts, decentralized finance (DeFi), and NFTs.
Institutional interest in Ethereum remains high. In 2025, the first Ethereum exchange-traded funds (ETFs) were launched in the U.S., facilitating investor access to this asset. Fundamental factors are also providing additional support to the ETH market: the total value locked in Ethereum (TVL) and staking volumes are nearing record levels, reflecting participants' trust in the long-term development of the ecosystem. Several analysts consider Ethereum to be undervalued: for example, in a recent appearance, Fundstrat co-founder Tom Lee stated that Ether is "radically undervalued" and has the potential for significant growth in the coming years. Ethereum continues to confidently hold its second place in the market, and the anticipated launch of new scaling technologies and protocol improvements in 2026 is 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 flagship cryptocurrencies. The prices of most cryptocurrencies from the top ten have increased by 3–6% over the last day, compensating for last week's downturn. The total market capitalization of altcoins (excluding BTC) has again exceeded $1.2 trillion. Investors are gradually shifting their attention to alternative digital assets, anticipating a possible "alt season" in the latter half of the year. The Altcoin Season Index increased to 55 points in January – the highest level in several months, indirectly indicating the emergence of a new phase of accelerated growth for altcoins.
Major alternative coins are showing robust growth: Solana (SOL) is holding steady around $150, recovering from recent lows amid discussions of ETF launches on Solana and the expansion of its ecosystem. Ripple (XRP) is trading near $2.50, remaining one of the leaders of the year due to Ripple's legal victory over the SEC last year, 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 the notable leaders in growth are payment and infrastructure tokens: Polygon (MATIC) added about 4% in the last 24 hours amidst positive news about developments in its network, while Litecoin (LTC) strengthened by 3%, continuing its upward trend from recent weeks. Overall, the altcoin sector is moving upwards, although the growth rates are still more subdued compared to the bullish 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 recorded in recent days. For example, MicroStrategy, led by Michael Saylor, reported acquiring approximately $2.13 billion in Bitcoin throughout January, making it one of the largest single investments in BTC. This "Bitcoin shopping" by a public company confirms the growing appetite of businesses for crypto assets. Additionally, the Intercontinental Exchange (owner of the New York Stock Exchange) announced the development of a new platform for trading and settlement of tokenized securities—a step that further blurs the line between traditional finance and the crypto industry.
In 2025, the first spot Bitcoin ETFs were approved in the U.S., and by the beginning of 2026, there are already several exchange-traded funds linked to BTC and ETH on the market. The influx of capital into these instruments continues to grow: according to industry analysts, the total assets under management of crypto ETFs worldwide have exceeded $60 billion. Asset managers, hedge funds, and even pension funds are increasing the share of cryptocurrencies in their portfolios, perceiving Bitcoin and Ether as "digital gold" and "digital oil" for diversification. The increase in institutional interest supports the market with liquidity and reduces volatility, gradually bringing cryptocurrencies closer to the status of a widely recognized class of investment assets.
Regulation and Global Adoption
The regulatory environment for cryptocurrencies is becoming more defined globally. In the U.S., comprehensive legislation on the structure of the crypto market (Crypto Market Structure Bill) is expected to be enacted soon, aiming to clarify the rules of engagement for 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 steps on both sides of the Atlantic are creating a solid legal foundation for the industry and reducing uncertainty for institutional investors.
Many governments that previously took a hard stance are reconsidering their approach to cryptocurrencies. For instance, there are reports that the Bolivian authorities, which have long prohibited cryptocurrency operations, are beginning to explore opportunities for integrating blockchain technologies into the national financial system. In Africa and Asia, the expansion of digital assets continues: Kenya is considering the launch of a state digital currency, while Pakistan is establishing partnerships with international crypto companies to develop local blockchain infrastructure. Even traditionally conservative financial centers, such as the UK and Canada, are working on transparent licensing and requirements for the crypto business. The global acceptance of cryptocurrencies is gradually increasing: the number of users of digital wallets worldwide has surpassed 500 million, and more companies are willing to accept Bitcoin and USDT as payment. The strengthening of regulation alongside increasing adaptation signals the maturation of the industry and is a positive factor in the long term.
Market Sentiments and Volatility
The rapid price fluctuations of recent weeks have been accompanied by a surge in short-term volatility in the cryptocurrency market. The Fear and Greed Index, which reached the "greed" zone in early January (above 70 out of 100), fell to 30 ("fear") by the end of the month. This indicates a notable cooling of sentiments following the correction when some retail traders and speculators reduced risk positions. Nevertheless, indicators of market activity remain healthy: daily trading volumes of Bitcoin and Ether remain consistently high, and the share of long positions on derivative platforms has begun to increase again, indicating a return of confidence among some participants.
Analysts note that the current correction is largely technical and temporary in nature. After months of rallying in 2025, the market is undergoing a phase of "profit digestion" and portfolio reshuffling, which is a natural process. Volatility remains relatively lower than peak levels of previous years, partly due to the increased share of institutional liquidity. Macroeconomic uncertainty (central bank rates, inflation) continues to influence short-term price fluctuations, but many experts believe that if inflation slows and signals for easing monetary policy emerge in the second half of 2026, demand for crypto assets could significantly strengthen. Overall, mid-term sentiments can be characterized as cautiously optimistic: market participants are carefully monitoring external factors, but fundamental interest in cryptocurrencies remains high.
Forecasts and Expectations
Despite the recent turbulence, many analysts maintain an optimistic outlook on the prospects of the crypto market in 2026. Renowned strategist Tom Lee (Fundstrat Global Advisors) believes that Bitcoin has not yet reached the peak of the current cycle: he predicted at the beginning of January that BTC would reach a new all-time high by the end of the month. Although this bold forecast did not materialize in January, Lee continues to hold 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 example, analysts at Standard Chartered indicated that, under favorable conditions, Bitcoin could exceed $150,000 within the next 12–18 months. Other forecasts project Ethereum to reach new highs (some experts cite a range of $7,000–10,000 over the next two years), considering the impact of reduced ETH issuance and the expansion of its use cases.
Of course, expert opinions differ regarding growth rates. The more conservative camp of analysts warns that heightened regulation and a potential slowdown in the global economy could limit cryptocurrency growth in the short term. However, even they acknowledge that fundamental drivers—such as increased blockchain adoption, growing user numbers, and Bitcoin's limited supply—create a strong foundation for the long-term appreciation of digital assets. Ultimately, the consensus is that the market is entering a more mature phase, where volatility may decrease somewhat, and growth will be more gradual compared to previous cycles. Investors are advised to exercise caution in the short term while maintaining strategic optimism regarding the role of cryptocurrencies in the global economy.
Top 10 Most Popular Cryptocurrencies
As of the morning of February 1, 2026, the following digital assets are listed among the top ten cryptocurrencies by market capitalization:
- Bitcoin (BTC) – The first and largest cryptocurrency. BTC is trading around $78,000 after a recent period of volatility, with a market cap of approximately $1.75 trillion (≈60% of the total market).
- Ethereum (ETH) – The leading altcoin and main platform for smart contracts. The price of ETH is stable around $2,800, reflecting stable demand despite being below its historical peak; market cap approximately $340 billion (≈12% of the market).
- Tether (USDT) – The largest stablecoin, pegged to the U.S. dollar at a 1:1 ratio. USDT is widely used for trading and transactions in the crypto market, with a market capitalization of about $150 billion; the coin consistently holds a price of $1.00.
- Ripple (XRP) – The token of the Ripple payment network for instant cross-border transactions. XRP is trading around $2.50, with a market cap of approximately $130 billion. Legal clarity regarding XRP's status in the U.S. following Ripple's court victory helped the token strengthen its position among industry leaders.
- Binance Coin (BNB) – The coin of the largest crypto exchange, Binance, and the native token of the BNB Chain. BNB is priced around $600 (market cap approximately $90 billion). Despite ongoing regulatory pressure on Binance, the token remains in the top five due to widespread use within the exchange ecosystem and DeFi services.
- Solana (SOL) – A high-performance blockchain platform for decentralized applications. SOL is trading around $150 per coin (market cap ~$70 billion), having recovered a significant portion of the 2022 decline. Interest in Solana is supported by the growing number of projects in its network and expectations of ETF approvals for SOL.
- USD Coin (USDC) – The second-largest stablecoin, backed by dollar reserves of Circle. The price of USDC consistently holds at $1.00, with a market cap of around $60 billion. USDC is favored by institutional investors and DeFi protocols due to its high transparency in reserves.
- Cardano (ADA) – A blockchain platform emphasizing a scientific approach to development. ADA is trading around $0.80 (market cap ~$28 billion) after a recent price recovery. Cardano is attracting attention due to plans for launching an ETF for this asset and the community's activity, which believes in the project’s long-term growth.
- TRON (TRX) – A platform for smart contracts and decentralized applications, particularly popular in Asia. TRX is holding around $0.33; market value ~ $30 billion. TRON maintains its place in the top ten, partly due to 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 (market cap ~$27 billion), supported by a dedicated community and periodic attention from celebrities. Despite high volatility, Dogecoin remains among the ten largest coins, demonstrating remarkable resilience in investor interest.
The Cryptocurrency Market as of the Morning of February 1, 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 capitalization: $2.95 trillion
- Bitcoin's market share: 59.2%
- Fear and Greed Index: 30 (fear)
Leaders in daily change:
- Growth: Polygon (MATIC) — +4.3%
- Decline: Conflux (CFX) — -5.7%
Analysis: Bitcoin and Ethereum demonstrate relative stability near their current levels, with the sentiment index situated in the moderate fear zone, reflecting caution among some investors following the recent downturn. The local growth leader, MATIC, indicates interest in scaling solutions for Ethereum amid positive technical updates for the project. At the same time, the decline in Conflux’s price may be attributed to profit-taking by traders or unfavorable news regarding the project. Overall, the market is in a consolidation phase: many major coins are holding their positions, while investors are awaiting new drivers, evaluating the balance of risks and growth potential over the coming weeks.
