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.

Hyperliquid's HYPE token stayed under selling pressure on Thursday even after Coinbase confirmed a spot listing with HYPE-USD trading set to begin on 5 February. The token changed hands near $32.9, more than 40% below its $58–60 peak, as a bearish market structure and fragile altcoin sentiment limited the impact of the listing news.

On 5 February, Bitcoin extended its decline below $70,000, returning to price levels last seen in late 2021 as spot and derivatives markets came under intense selling pressure. BTC traded near $67,400, more than 7.5% lower on the day, while on-chain and volume data signaled forced liquidations, reduced exposure by large holders, and a fragile technical structure around the $70,000–$72,000 region.

On 4 February, Bitcoin slid under $72,000, extending its recent downtrend and reaching a new local low amid selling in spot and derivatives markets. The price briefly touched an intraday low near $71,700 and was last seen around $71,800, down about 5% on the day, as weak U.S. spot demand and over $235 million in liquidations, mostly from longs, weighed on the market. Technical focus has now shifted to the $70,000 area as a key psychological level, with $75,000–$78,000 viewed as the first zone to reclaim for any sign of stabilization.

In Q4 2025, Tether increased the circulating supply of USD₮t to around $109 billion while the total crypto market capitalization fell from roughly $3.9 trillion to about $2.6 trillion. The stablecoin's net issuance surpassed $10 billion in the quarter, as investors rotated into dollar-pegged liquidity amid heightened volatility and capital preservation priorities.

On Wednesday, 4 February, XRP extended its slide, continuing a months-long bearish trend. At the time of writing it traded around the mid-$1.50 range, among its weakest levels since late 2024. Despite ongoing downside, sentiment has hovered near neutral to slightly negative, showing no clear signs of capitulation.

On 3 February, Vitalik Buterin said Ethereum's original "rollup-centric roadmap" no longer fully reflects how the protocol is evolving, as L2s gain usage while securing less value. Rollups now process roughly 3,470 UOPS and hold $40.3 billion in value, down 13.2% year-on-year, amid low L1 gas and planned 2026 gas-limit increases.

On 2 February, a White House meeting designed to break a long-running deadlock on U.S. crypto market structure legislation ended without a deal, with stablecoin rewards remaining the core sticking point. Banking groups want the bill to restrict interest and other rewards on stablecoins, while crypto firms insist such incentives are essential for growth, leaving the Senate unable to move the bill forward.

On 2 February 2026, Trump Media & Technology Group reaffirmed that 2 February 2026 is the record date for a shareholder-only digital token program. Holders with at least one full share of "DJT" will receive non-transferable tokens providing access-based rewards across Truth Social, Truth+, and Truth.Fi, with no equity, cash redemption, or investment features.