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 demonstrating a continued correction as macroeconomic uncertainties persist towards the end of the week. Leading digital assets have significantly decreased in price: Bitcoin (BTC) is consolidating around the $85,000 mark after recent peaks, while Ethereum (ETH) has fallen below $3,000 (to approximately $2,800). The total market capitalization of cryptocurrencies has shrunk to around $2.8 trillion, and the Fear and Greed Index has slid into the “fear” zone, reflecting investor caution. Market participants are assessing how deep the current pullback will be and which factors will dictate future price movements.
Bitcoin: Correction After Record Rally
Bitcoin is trading around $85,000 this week, retreating from its all-time high reached in early January (approximately $100,000). Over the last few days, BTC has continued its downward trend, experiencing nearly two weeks of consecutive declines – the longest downturn in more than a year. The primary driver of the decline has been an overall deterioration in risk appetite across global markets: news of escalating trade relations between the US and Europe (the US ultimatum regarding Greenland and the threat of tariffs) triggered sell-offs in the crypto market. Over the past few days, more than $2 billion in margin positions have been liquidated, exacerbating the asset's downward movement. Technically, the critical threshold now lies around the $80,000 zone – maintaining this level is crucial to avoid a deeper drop (potentially down to $70,000–75,000, according to several analysts). At this stage, BTC continues to demonstrate a high correlation with risk assets and is temporarily not fulfilling its status as “digital gold”: in times of uncertainty, investors prefer to shift towards tangible protective assets.
Altcoin Market: Widespread Decline
The altcoin market is also experiencing widespread declines. Ethereum (ETH), the second-largest cryptocurrency by market capitalization, has dropped more than 3% in the last 24 hours and is holding below $3,000, highlighting the vulnerability of altcoins to overall market corrections. The overwhelming majority of leading tokens have entered the “red zone”: over 90 of the top 100 cryptocurrencies have decreased in value in recent days. For instance, XRP (the token associated with Ripple) has dipped to around $1.80 amidst ongoing sell-offs; BNB has decreased to approximately $610 this week, losing about 5% in the last 24 hours; Solana (SOL) has retreated to around $120, even as the share of staked tokens in its network 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 amid market turbulence. Overall, the future dynamics of the altcoin sector largely depend on Bitcoin's behavior: if the flagship stabilizes around current levels, the market for alternative coins may find a local bottom and begin recovery.
Top 10 Most Popular Cryptocurrencies
The top 10 largest and most popular cryptocurrencies currently include the following digital assets:
- Bitcoin (BTC) – the leading cryptocurrency with a dominant market share (approximately 60% of total capitalization). Current price ~ $85,000; following a powerful rally in 2025, Bitcoin is correcting from all-time highs but still confidently holds the top 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 maintains its key role in the industry. Many experts expect renewed interest in ETH in 2026 due to ongoing ecosystem developments and network updates.
- Tether (USDT) – the largest stablecoin pegged to the US dollar (1 USDT ≈ $1). Capitalization is 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, providing relative portfolio stability.
- BNB (BNB) – the native token of the Binance ecosystem (the largest cryptocurrency exchange and blockchain platform). Price is around $620; due to its widespread use on the Binance platform, BNB remains firmly in the top 5, although it has also faced declines recently in the overall negative market environment.
- USD Coin (USDC) – the second-largest stablecoin, issued by the Centre consortium (fintech company Circle). Fully backed by reserves in US dollars (capitalization of approximately $50–52 billion) and widely used in trading operations and on DeFi platforms, it remains one of the most reliable digital dollars.
- XRP (XRP) – the cryptocurrency associated with fintech company Ripple (solutions for international payments). Price is around $1.80; after Ripple's notable victory over the SEC in 2025, XRP saw significant growth and returned to the top 10, although the current market correction has partially offset this price increase.
- Solana (SOL) – a rapidly growing blockchain platform focused on high transaction speed and volume. Price is around $120; Solana remains in the top 10 thanks to the development of its own DeFi/NFT ecosystem. Record levels of ~70% of all SOL coins are currently engaged in staking, reflecting a high level of community trust in the project.
- Tron (TRX) – a popular platform for smart contracts and digital content in Asia. Price TRX is around $0.28; due to the active use of the Tron network (including for issuing stablecoins and facilitating quick transfers with minimal fees), this token maintains its position among the largest cryptocurrencies worldwide.
- Dogecoin (DOGE) – a “meme” cryptocurrency originally created as a joke but gaining massive popularity. Price is around $0.10; despite its whimsical origins, Dogecoin remains one of the most capitalized coins. However, its price experiences heightened volatility and is significantly influenced by community sentiment and activity.
- Cardano (ADA) – a blockchain platform for smart contracts developed based on academic research and gradual protocol updates. ADA is currently trading around $0.32; the project continues its technical development (recent updates have improved the network's scalability), allowing Cardano to retain its positions among market leaders of digital assets.
Geopolitical and Macroeconomic Risks
External factors continue to exert pressure on cryptocurrencies. The unexpected escalation of trade disputes between the US and Europe has become a key trigger for the recent sell-off: at the economic forum in Davos, the US president put forward the ultimatum “Greenland or Tariffs,” threatening to impose levies, which has put transatlantic relations on the brink of a trade war. The European Union has responded by stating its readiness to implement strict countermeasures, heightening investor concerns regarding the global implications of the conflict. As a result of this geopolitical noise, market participants have begun to exit risk assets (such as stocks and cryptocurrencies) in favor of protective tools.
Monetary factors are also creating additional pressure. Yields on US and European government bonds have risen to multi-year highs, signaling a potential tightening of financial conditions. Classic “safe havens” are demonstrating capital inflows: gold prices have reached an all-time high, surpassing $4,600 per ounce, while silver is also experiencing record price increases. At the same time, the VIX volatility index has reached a two-month high, reflecting increased uncertainty in traditional markets. The combination of these macro risks has triggered a “risk-off” mode, during which crypto assets temporarily lose their appeal in the eyes of global investors.
Investor Sentiments and Volatility
Against the backdrop of these events, market sentiments in the crypto industry have noticeably deteriorated. The sentiment index (Crypto Fear & Greed Index) remains in the “fear” territory, signaling a predominance of caution among investors. Since the beginning of the week, the total capitalization of the crypto market has decreased by approximately $200 billion, and price volatility has intensified. According to industry analysts, over just one day of sharp price declines, forced liquidations amounted to more than $1.7 billion – indicating a significant reduction in risk and a “cleansing” of the market from excessive leverage. Elevated price fluctuations increase uncertainty, and many traders are reducing margin positions in anticipation of stabilization.
Institutional Interest and Adoption
Despite the current volatility, institutional interest in digital assets remains historically high. Major financial organizations continue to view the downturn as an opportunity for long-term investments. According to investment funds, there has been a sustained net inflow of capital into cryptocurrency products in recent weeks, although the pace has slowed. There is also noticeable active adoption of crypto solutions in the traditional financial system: new cryptocurrency ETFs and exchange products are receiving regulatory approval and being launched on major exchanges, expanding investor access to the market. The participation of tech giants and banks in blockchain projects is increasing, underscoring long-term institutional confidence in the potential of cryptocurrencies and distributed ledger technology.
Outlook and Forecasts
The current correction raises questions for investors regarding the future prospects of the market: will it be a short-term pause within an ongoing bull trend, or does it signal the beginning of a more prolonged downturn? Expert opinions are divided. Some analysts view the situation as a healthy correction following rapid growth, expecting that as the macroeconomic environment stabilizes, Bitcoin and leading altcoins will resume their ascent in the coming months. Some optimistic forecasts still suggest Bitcoin could reach new heights by the end of 2026 (with targets of $150,000–200,000 per BTC), considering the growing recognition of cryptocurrencies globally.
Conversely, other experts call for caution, citing persistent risks. They believe that increased regulatory pressure or worsening conditions in the global economy could prolong the market's consolidation period or even lead to deeper price declines. In the short term, traders are closely monitoring key support levels – for Bitcoin, it is essential to stay above $75,000–80,000 to maintain chances for recovery. Attention is also being paid to 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 prospects for the cryptocurrency industry remain positive. Many market participants note that each correction cycle is accompanied by a cleansing of the market from speculative capital and lays the foundation for a new growth phase. Investors are advised to adhere to a balanced strategy and diversification: current low price levels may provide opportunities to enter positions, but risk management and thorough analysis remain key success factors in the dynamic cryptocurrency market.
