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This Week’s Summary

• The cryptocurrency market looks set to end the week at a total market capitalization of around $2.65 trillion.
• Bitcoin’s trading value decreased to around $77,100.
• Ethereum decreased by nearly 20% to trade at around $2,300.
• XRP moved down 14%, Solana moved down 18%, and Dogecoin moved down 14%.
• Almost all altcoins have been seen trading in the red, though there are some exceptions to take note of.
• The DeFi sector saw total value locked (TVL) decline to about $108 billion.

Crypto Market Trends for the Week of Jan. 26 - Feb. 1, 2026: Market Analysis and Performance

The cryptocurrency market appears to be crashing as we speak, with major losses seen across the board. Cryptocurrency had been on a downtrend since early December, and for most of the week, the decline continued steadily. Then, on the last day of January, the situation worsened dramatically.

The main reasons for this sudden drop include Bitcoin’s fall below key support at $85,000 and increased geopolitical tension. As a result, the overall market capitalization lost over $350 billion in less than seven days.

Bitcoin declined consistently for most of the week. However, after the US Federal Reserve pivoted on its most recent monetary policy and paused the interest rate cuts on Wednesday evening, BTC’s value dropped consistently. Bitcoin’s loss of the $85,000 support level sent a shockwave through the market, and all cryptocurrencies began bleeding heavily.

Moreover, heightened tensions in the US and internationally affected the financial markets, with the S&P 500 dropping sharply. The decline was replicated in the cryptocurrency market, where Bitcoin continued its descent. At the end of a troublesome week, Bitcoin has been struggling to hold above $78,000.

Ethereum similarly dropped significantly over the past seven days, erasing all the gains it had made during the previous market rally. As a result, the second cryptocurrency in command broke below the $3,000 level and has been in a nearly 20% downward trend. If the market does not recover soon, ETH may lose $2,000 as well. These developments certainly highlight the recent volatility in Ethereum’s price.

Altcoins & DeFi

Most altcoins have been seen trading in the red, though there are still some exceptions to take note of. For example, XRP moved down 14%, Solana moved down 18%, Cardano moved down 17%, Avalanche moved down 15%, Sui moved down 24%, Chainlink moved down 19%, and TRON moved down 4%. In contrast, Hyperliquid shifted up 31%.

The memecoins have also shifted in interesting ways in recent trading. For instance, Dogecoin fell down 14%, Shiba Inu fell down 12%, and Pepecoin fell down 13%.

The Metaverse sector similarly witnessed some notable movements over the past week. For instance, Axie Infinity moved down 20%, The Sandbox moved down 26%, and Floki moved down 18%. Meanwhile, Decentraland fell down 23%, Render fell down 22%, and ApeCoin fell down 18%. Stacks dropped by 12% and Virtuals by 23%. Meanwhile, Wemix decreased by 8%.

The DeFi sector lost nearly $12 billion from the total value locked in protocols (TVL), bringing the total to about $108 billion.

What’s in the News?

• The US SEC has released new guidance clarifying how federal securities laws apply to tokenized securities, dividing them into two main types: issuer-sponsored and third-party-sponsored.

Next Week’s Crypto Market Forecast

The cryptocurrency market appears to be bleeding by the hour, as most cryptocurrency assets have recorded double-digit losses. The current downtrend is likely exacerbated by massive fear, uncertainty, and doubt, heightened political tensions, and deep global economic problems. Hopefully, the trajectory will reverse before the losses become irreparable.

About the Author

Born and raised in Romania, and currently living in Spain, Iulian discovered a knack for writing from a tender age, and he even won some minor awards for fiction that didn't pay much.

Iulian became a content writer in 2011, and he is still doing it to some degree of success today. He is currently specialized in cryptocurrencies, technology, online marketing, and social media. In his free time, Iulian likes reading, traveling, and watching sports. 

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