Current Cryptocurrency News as of February 4, 2026: Bitcoin Attempts Stabilization After January Sell-off, Major Altcoins Remain at Multi-Month Lows, Regulators Accelerate Development of New Market Rules, Overview of 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 exhibiting tentative signs of recovery after the recent crash. Following the most challenging month (January) in recent times, during which the total capitalization of the industry shrank by approximately a quarter from the autumn peaks, a relative calm has settled over the market. Bitcoin (BTC) is holding steady around ~$78–80k, having rebounded from a local low of around $75,000, which proved to be a psychologically significant support level. Nevertheless, the overall cryptocurrency market capitalization is still estimated at less than $3 trillion (down from over $4 trillion at its peak), and investor sentiment remains cautious: the "fear and greed" index is firmly rooted in the "fear" zone. Traders continue to evaluate macroeconomic risks and regulatory news closely before resuming active purchases of digital assets.
Bitcoin: Consolidation at a Key Level
The first cryptocurrency is trying to stabilize after a deep correction. At the beginning of the week, the price of Bitcoin dipped to around ~$75,000 – its lowest level since spring 2025 – but "digital gold" then bounced back from this mark. Currently, BTC is 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 exceeds 60% once again, reflecting a capital shift from riskier altcoins to the flagship asset. Experts note that despite the significant downturn, Bitcoin remains one of the largest financial assets in the world, and most long-term holders ("whales") are not rushing to part with their coins. On the contrary, some large investors view the current levels as a strategic opportunity: public companies that previously increased their BTC reserves signal readiness to buy more at lower prices, confident in Bitcoin's long-term value. Such "smart money" behavior supports trust in BTC'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 downturn. Since autumn 2025, the price of ETH has fallen by nearly 50% from its peak (~$5,000) and briefly dipped below $2,300 during the sell-off this week. Ethereum is now trading in the ~$2,400–2,500 range, which is significantly below its historical maximum, yet the fundamental indicators of the network continue to inspire optimism. In January, Ethereum developers successfully implemented another protocol upgrade aimed at enhancing blockchain scalability, and the Layer-2 solutions ecosystem continues to grow, alleviating the load on the main network and reducing fees. A significant portion of ETH coins is still locked in staking or held long-term, limiting supply in the market. Despite a temporary capital outflow from Ethereum funds amid January's drop, institutional interest in ETH remains: in 2025, the US saw the launch of the first spot ETFs for Ethereum, which attracted billions of dollars, and many large investors still include Ethereum in their portfolios alongside Bitcoin. Thus, despite the price dip, Ethereum maintains a key role in the industry (DeFi, NFT, dApp) and robust fundamental positions, supporting positive long-term expectations.
Altcoins: At Multi-Month Market Lows
A wide range of altcoins from the top 10 continues to trade at reduced levels after January's crash. Many leading altcoins have lost 30–50% of their value from recent highs. The wave of risk aversion forced investors to reduce positions in the most volatile tokens, with a significant amount of capital flowing into stable assets or exiting the cryptocurrency market altogether. This has resulted in a rise in stablecoin market share and an increase in Bitcoin dominance. As a result, BTC's share of total capitalization has once again surpassed 60%, indicating the movement of funds from altcoins into the most reliable digital asset.
Just recently, some coins exhibited outperforming dynamics against positive news, but the overall downward trend negated these gains. For example, the XRP token (Ripple), after the company's loud legal victory last summer, peaked at around $3, but by early February it had retreated approximately half that amount, currently hovering around $1.5. A similar situation applies to Solana (SOL): in autumn 2025, the price of SOL soared above $200 due to ecosystem recovery, but it has now corrected to just over $100. Binance Coin (BNB), which reached ~$880 at its peak in 2025, remained resilient even under regulatory pressures around the Binance exchange; however, since January it has dropped to around ~$500 in line with the market. Other significant altcoins – Cardano (ADA), Dogecoin (DOGE), Tron (TRX) – are also far below their historical peaks, although they maintain their spots in the top ten due to still high market capitalization and community support. In the face of increased uncertainty, many traders prefer to ride out the turbulence, staying in stablecoins (USDT, USDC, etc.) or Bitcoin. The inflow of new capital into the altcoin segment remains limited until the overall macroeconomic situation clarifies. A return of interest in altcoins is possible after Bitcoin stabilizes and risk appetite recovers, but caution prevails in the near term, favoring the most reliable assets.
Regulation: The Quest for Clear Rules
Amid the rapid growth of the industry, governments and regulators worldwide have intensified efforts to develop unified rules for the cryptocurrency market. Key regulatory directions at the beginning of 2026:
- USA: In the United States, the discussion around the regulation of digital assets has reached a dialogue level between the government and the industry. The administration is organizing meetings with banks and crypto firms, striving to reach a compromise and form a comprehensive regulatory framework (including the Digital Asset Market Clarity Act bill). There is also discussion around tightening requirements for stablecoin issuers (up to 100% reserve backing for their issuance). Concurrently, regulators continue targeted oversight measures: the SEC and CFTC successfully closed several fraudulent schemes at the end of 2025, while legal precedents (such as Ripple's victory in the XRP case) are gradually clarifying the legal status of key tokens. In some states, there are independent initiatives, including proposals to create their own "Bitcoin reserves" to support innovations.
- Europe: Since January 2026, the European Union has implemented the comprehensive MiCA regulation, establishing transparent rules for the circulation of crypto assets across all EU countries. Additionally, a reporting standard (DAC8) is being prepared to oblige crypto platforms to report user transaction data to tax authorities (to come into effect later in 2026). These measures aim to unify oversight and reduce uncertainty for businesses and investors in the European cryptocurrency market.
- Asia: Asian financial centers are seeking a balance between controlling the crypto industry and attracting innovations. Japan plans to ease the tax burden on cryptocurrency operations (considering a reduction in trading tax rates to ~20%) and is preparing to launch its first crypto ETFs, strengthening the country's position 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 clear: from bans and fragmented governmental actions to integrating the crypto market into the existing financial system through clear rules and licenses. As these unified regulations appear, trust among large institutional players in the crypto industry will grow, which will be positively reflected in the market in the long term.
Institutional Trends: Pause and Long-Term Approach
After record investments from institutional players in cryptocurrencies last year, the start of 2026 has been marked by a more cautious position among large players. The sharp price fluctuations in January triggered a temporary outflow of funds from some crypto funds and crypto ETFs: managers took profits and reduced risks while awaiting market stabilization. Industry analysts report that over $1 billion was withdrawn from American spot Bitcoin ETFs in the last weeks of January, and outflows from Ethereum funds amounted to hundreds of millions of dollars – indicators of the increased caution of "smart money." Nevertheless, long-term interest in digital assets has not disappeared. Major financial firms continue to engage in strategic projects in the crypto sphere – implementing blockchain solutions, developing storage and servicing infrastructure for digital assets, and investing in industry-relevant startups. For example, exchange operator Nasdaq recently expanded trading capabilities for crypto derivatives, removing several restrictions and thereby bringing the trading conditions for crypto ETFs closer to traditional instruments. Public companies holding Bitcoin on their balance sheets are not selling their assets even during downturns, and some, as previously noted, are ready to increase their positions at attractive prices. It is anticipated that as macroeconomic uncertainty subsides and regulatory rules become clearer, institutional investors may accelerate their cryptocurrency investment activities.
Top 10 Most Popular Cryptocurrencies
The top ten largest digital currencies by market capitalization as of today include the following assets:
- Bitcoin (BTC) – the first and largest cryptocurrency, currently dominating around 60% of the total market. BTC is trading around $80,000 after a recent correction, remaining a core "digital gold" and the foundational asset of many crypto portfolios.
- Ethereum (ETH) – the second-largest crypto asset and a leading smart-contract platform. The current price of ETH is around $2,400; Ethereum underpins the DeFi, NFT, and various decentralized applications ecosystems, maintaining its key significance for the industry.
- Tether (USDT) – the largest stablecoin pegged to the US dollar at a 1:1 ratio. USDT is widely used for trading and storing assets, 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 crypto exchange Binance and the BNB Chain. It offers discounts on fees and fuels many DeFi applications. After correction, BNB is valued at about $500; despite regulatory pressures surrounding Binance, the coin remains in the top 5 due to its wide utility.
- 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); bolstered by legal certainty of its status in the US and interest from funds, this token remains 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 (with capitalization around $30 billion).
- Solana (SOL) – a high-performance blockchain platform known for its low fees and fast transaction processing. In 2025, SOL surged above $200, attracting investor interest, but has since corrected to just over $100 after the market downturn; Solana remains among the leading protocols for DeFi and Web3.
- Cardano (ADA) – the cryptocurrency of the Cardano platform, developed based on scientific principles. ADA maintains its place in the top 10 due to substantial market capitalization and an active community, although its price (~$0.50) is far below historical highs. The project continues technical updates, laying the foundation for future growth.
- Dogecoin (DOGE) – the most famous "meme" crypto asset, starting as a joke but turning into a mass phenomenon. DOGE is holding around $0.10; the coin enjoys strong community support and periodic attention from celebrities. Despite high volatility, Dogecoin continues to rank in the top 10, demonstrating remarkable investor interest resilience.
- Tron (TRX) – the token of the Tron platform focused on decentralized applications and digital content. TRX (around $0.25) is in demand for issuing and moving stablecoins (a significant portion of USDT trades on the Tron blockchain due to low fees), helping it remain among the top coins along with other major currencies.
Prospects and Expectations
In the short term, the situation in the cryptocurrency market remains uncertain. Investor sentiment still leans towards caution: the "fear and greed" index is in the "fear" zone, indicating prevailing negative expectations. Analysts warn that if macroeconomic pressures persist, a new wave of price declines may occur. Specifically, some experts do not rule out a fall in Bitcoin to $70,000–75,000 if the current support levels do not hold. Volatility in recent weeks remains elevated, and a series of liquidations of margin positions serve as a reminder to market participants about the importance of strict risk management when dealing with crypto assets.
At the same time, many specialists view the medium- and long-term prospects of the industry positively. Historically, each steep decline has cleared the market of excessive speculation and laid the groundwork for a new growth cycle. Technological advancements within the ecosystem continue to progress without pause: innovative projects are emerging, infrastructure is being improved, and traditional financial institutions are integrating blockchain into their businesses. Major corporations around the world have not lost interest in cryptocurrencies – rather, they consider the current correction an opportunity to strengthen their positions. After the explosive rally of 2025, a natural phase of cooling and consolidation has followed; it is expected that with improving macroeconomic conditions and the removal of regulatory uncertainties, the market will resume its upward trend. Fundamental demand factors for digital assets – from the widespread adoption of distributed ledger technology to the growth of decentralized finance (DeFi) and the development of the Web3 concept – continue to be in play. According to several investment firms, under favorable conditions, Bitcoin could not only recover above the psychological marker of $100,000 but also set new records in the next year or two. Naturally, much depends on the actions of regulators and central banks: should the Federal Reserve adopt a more lenient stance amid slowing inflation, and if legislative initiatives address legal gaps, capital inflows into crypto assets could significantly accelerate. For now, however, 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 present new entry points. Digital assets, despite the downturn, continue to solidify their position in the global financial system, and their role in the long term is likely to only increase.
