The cryptocurrency market started February on a weak footing as a wave of selling swept across major digital assets. Crypto prices today reflected broad risk aversion, with Bitcoin leading the decline and altcoins following closely behind. Mounting geopolitical tensions, unresolved regulatory battles in the US, fresh compliance signals from India, and security concerns around Solana combined to trigger one of the sharpest corrections in weeks.
At press time, the global crypto market capitalization had dropped 4.65% to $2.54 trillion, wiping out billions in value within hours and reversing much of January’s optimism.
Bitcoin breaks key support, sparks liquidation cascade
Bitcoin fell 3.29% over the past 24 hours to trade near $76,282, decisively slipping below the psychologically important $80,000 mark. The move marked a clear shift in short-term trend, with BTC’s market capitalization sliding to $1.52 trillion while daily trading volume surged to $62.7 billion as leveraged positions were unwound.
Market participants pointed to thin weekend liquidity and elevated leverage as key accelerants of the decline. As Bitcoin breached $80,000, a large cluster of long positions was liquidated almost instantly, turning a gradual selloff into a sharp drop. Estimates suggest close to $1 billion in leveraged longs were wiped out in minutes, amplifying downside pressure in shallow order books.
After the forced unwinding, Bitcoin showed early signs of stabilization in the $75,000-$77,000 range. Traders now see $80,000 as the first major resistance if recovery attempts begin, while a sustained break below $75,000 could expose deeper downside toward the $72,000-$70,000 zone.
Ethereum hit harder as altcoin fear spreads
Ethereum underperformed Bitcoin, plunging 7.78% to $2,256. The world’s second-largest cryptocurrency saw its market capitalization fall to $272.3 billion, with daily trading volume crossing $47.4 billion.
The sharp decline highlights growing nervousness in the altcoin market, where traders tend to exit risk faster during macro-driven selloffs. Analysts noted that Ethereum’s drop was not driven by network-specific issues but rather by broad deleveraging and declining appetite for high-beta assets.
Top cryptocurrencies trade firmly in the red
Losses extended across the top 10 cryptocurrencies. Solana fell 3.72% to $101.17, continuing a steep decline from the $140–$145 range seen just weeks ago. The drop accelerated following reports of a major security breach linked to a Solana-based protocol, which further eroded confidence in its DeFi ecosystem.
XRP slid 4.29% to $1.59, cutting its market capitalization to $96.8 billion. BNB declined 3.17% to $757.43, while Cardano dropped 2.68% to $0.2883. Dogecoin and TRON showed relative resilience, with DOGE easing just 0.48% to $0.1045 and TRON down 1.11% to $0.2832.
As expected during market stress, stablecoins held steady. Tether traded near $0.9989 and USDC around $0.9996, serving as temporary shelters for capital rotating out of volatile assets.
Regulatory uncertainty weighs heavily on sentiment
Crypto prices today were also pressured by renewed uncertainty around the US CLARITY Act. Negotiations have stalled amid disagreements between crypto firms and traditional banks, prompting intervention from the White House. Talks scheduled for February 2 are focused on whether crypto platforms should be allowed to offer interest on stablecoin balances, a point banks argue resembles unregulated deposit-taking.
The bill’s narrow progress in the Senate has raised doubts about its passage, especially as crypto companies push back against provisions that could limit stablecoin rewards. The lack of regulatory clarity continues to act as a ceiling on risk appetite, particularly for US-facing platforms and tokens.
US sanctions and Solana hack deepen risk-off mood
Adding to the pressure, the US Treasury sanctioned two UK-registered crypto exchanges over alleged Iran-linked activity, marking the first time entire platforms have been targeted under Iran-specific sanctions. The move intensified fears around compliance risk and reinforced the perception that enforcement actions are expanding beyond individual wallets and protocols.
Meanwhile, a reported $30 million theft involving SOL tokens from treasury wallets associated with Step Finance sent shockwaves through the Solana ecosystem. Although user funds were reportedly unaffected, the scale and speed of the transfers raised questions about internal security controls, triggering forced selling and accelerating SOL’s decline.
India budget signals tighter compliance, mixed market reaction
In contrast to the uncertainty in the US, India’s Union Budget 2026 delivered clearer signals for crypto regulation. The government emphasized stricter reporting, enhanced compliance, and alignment of crypto transactions with traditional financial standards. Industry leaders described the move as constructive for long-term growth, even if short-term sentiment remained cautious.
India’s regulatory direction suggests reduced ambiguity for exchanges and service providers, but global investors remained focused on immediate macro risks rather than regional policy clarity.
Commodities turmoil spills into crypto markets
Traditional markets added another layer of volatility. Silver extended losses after a historic late-January crash, gold recorded its steepest daily fall since 1983, and oil prices dropped sharply amid geopolitical headlines. A firm US dollar, supported by expectations of a more hawkish Federal Reserve leadership, further weighed on speculative assets like cryptocurrencies.
This broad-based risk-off environment pushed investors to reduce exposure across asset classes, leaving crypto particularly vulnerable due to its high sensitivity to leverage and sentiment shifts.
What does this mean for the crypto market?
Crypto prices today reflect a market under pressure from multiple angles. Technical damage in Bitcoin, unresolved regulatory battles, security concerns, and global macro instability are keeping investors defensive. Until leverage fully resets and clearer regulatory signals emerge, downside risks remain elevated. While long-term adoption narratives are intact, the near-term outlook suggests continued volatility as markets search for a stable floor.
