On Feb. 5, 2026, Bitcoin-buying firm Strategy reported a net loss of $12.4 billion for the fourth quarter of 2025 after Bitcoin fell 22% over the period to below $88,500. The company's revenue for the quarter rose 1.9% year-on-year to $123 million, but its share price dropped 17% to $107 as Bitcoin extended its decline and pushed Strategy's 713,502 BTC holdings 17.5% underwater. Executives Phong Le and Andrew Kang said Strategy still has a strong balance sheet, supported by $2.25 billion in cash and no major debt maturities until 2027.

In Senate Banking Committee testimony on Thursday, Treasury Secretary Scott Bessent urged passage of the Digital Asset Market Clarity Act and told firms seeking minimal oversight to "move to El Salvador." Coinbase withdrew support in January 2026 over proposed limits on passive stablecoin yields, while Bitcoin is down over 32% this year near $63,100.

Several European tokenization and financial infrastructure firms have urged the EU to amend its DLT Pilot Regime, arguing that tight asset categories, issuance caps, and a 6-year license limit are stalling blockchain-based market growth. They warn Europe could fall behind the US, where regulators have issued a DTCC no-action letter and clarified tokenized securities rules, paving the way for larger-scale tokenized trading and faster settlement.

Heading into early February 2026, Midnight (NIGHT), Hyperliquid (HYPE), and Monero (XMR) are bucking weak altcoin sentiment with accumulation and catalyst-led strength. Midnight's Q1 2026 'Kūkolu' phase was outlined in a January update, while HYPE's CMF turned positive and open interest climbed to $793M around Jan. 26–27. Monero's MFI points to fading sell pressure near $305 after an 11-day, 30% drop.

On 6 February 2026, Santiment introduced a screener that ranks leading crypto governance tokens by GitHub development activity instead of price performance. The latest snapshot highlights Radworks, Curve Finance, API3 and other DeFi and infrastructure projects as maintaining strong developer engagement even while governance token prices remain under pressure. The ranking points to a clear gap between cautious market sentiment and continued on-chain building across major protocols.

Crypto market sentiment slid to extreme fear as the Fear and Greed Index printed 11. On 4 February, U.S.-listed Bitcoin ETFs saw about $545m in net withdrawals, while Ethereum funds lost around $79m. Rising volatility and weak price action reinforced a risk-off tone across majors and altcoins.

In November 2021, Bitcoin set an all-time high near $69,000. On February 5, 2026, according to CoinMarketCap, BTC slid toward the low $60,000s and erased those gains as more than $1.5 billion in crypto positions were liquidated in 24 hours. The decline followed a leverage unwind, shifting focus to spot demand and the $60,000 area.

Bitwise submitted a registration statement to the SEC for a Uniswap-focused ETF on Thursday, according to the filing. The proposed fund would track UNI and launch without staking, with the option to add it later if approved, and lists Coinbase Custody Trust Company, LLC as custodian. Around the same time, UNI fell about 15% over 24 hours, while bitcoin dropped nearly 15% on Thursday.