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This week's recap
- The crypto market ends the week with a complete market capitalization of $2.65 trillion.
- Bitcoin’s trading value fell to around $77,100.
- Ethereum fell almost 20% to trade at around $2,300.
- XRP is down 14%, Solana is down 18%, and Dogecoin is down 14%.
- Almost all altcoins are trading within the red, although there are some exceptions.
- In the DeFi sector, the entire value locked (TVL) fell to around $108 billion.
Crypto Market January 26 – February 1, 2026: Market Analysis and Performance
The crypto market is currently collapsing, with major losses across the board. Crypto has been in a downtrend for the reason that starting of December and the decline continued steadily for many of the week. Then, on the last day of January, the situation worsened dramatically. The predominant reasons for this sudden decline are Bitcoin falling below a key support at $85,000 and increasing geopolitical tensions. As a result, the entire market cap lost over $350 billion in lower than seven days.
The Bitcoin price recorded a continuous decline for many of the week. However, after the US Federal Reserve modified its recent monetary policy and suspended rate of interest cuts on Wednesday evening, the worth of BTC continued to say no. Bitcoin's loss below the $85,000 support level sent a shockwave across the market and all cryptocurrencies began to bleed profusely. Furthermore, rising tensions within the US and internationally affected financial markets and led to a pointy decline within the S&P 500. The decline was repeated within the crypto market, where Bitcoin continued its descent. At the top of a difficult week, Bitcoin is struggling to carry above $78,000.
Ethereum has fallen significantly over the past seven days, wiping out all of the gains it made in the course of the previous market rally. As a result, the second largest cryptocurrency collapsed below the $3,000 mark and is now in a downtrend of virtually 20%. If the market doesn’t get well soon, ETH could also lose $2,000. These developments highlight the recent volatility in Ethereum price.
Altcoins and DeFi
Most altcoins are trading within the red, although there are notable exceptions. For example, XRP is down 14%, Solana is down 18%, Cardano is down 17%, Avalanche is down 15%, Sui is down 24%, Chainlink is down 19%, and TRON is down 4%. In contrast, Hyperliquid is up 31%.
There were also some interesting developments with memecoins. For example, Dogecoin is down 14%, Shiba Inu is down 12%, and Pepecoin is down 13%.
The Metaverse sector has also seen notable moves over the past week. For example, Axie Infinity is down 20%, The Sandbox is down 26%, and Floki is down 18%. Meanwhile, Decentraland is down 23%, Render is down 22%, and ApeCoin is down 18%. Stacks fell 12% and virtuals fell 23%. Meanwhile, Wemix fell 8%.
The DeFi sector lost nearly $12 billion of total value locked in protocols (TVL), bringing the entire to about $108 billion.
Crypto Market Analysis – What’s New?
- The U.S. Securities and Exchange Commission (SEC) has issued latest guidance clarifying how federal securities laws apply to tokenized securities, classifying them into two predominant types: issuer-sponsored and third-party sponsored.
Crypto market forecast for next week
The crypto market is bleeding by the hour, with most crypto assets recording double-digit losses. The current downtrend is exacerbated by massive FUD, heightened political tensions, and deep global economic problems. Hopefully the trend will likely be reversed before the losses turn out to be irreparable.
The post WMA: Bitcoin plunges below $80,000 as market loses over $350 billion in per week appeared first on Crypto Adventure.
