Bitcoin price traded near $71,000 after a 6.94% drop, triggering volatility, liquidations, and renewed fears of deeper downside.
Cardano fell 5.28% to $0.2842, losing momentum and slipping back from the top ten amid broad market weakness.
US crypto bill talks stalled as banks and lawmakers debated stablecoin rules, adding regulatory uncertainty to investor sentiment.
The crypto prices today, on February 5, 2026, saw bears taking the lead. Bitcoin traded at $71,191 at press time, dragging down most altcoins in a market-wide selloff. The top stablecoins, USDC and USDT, offered some liquidity, showing negligible movement. The global crypto market cap is down by 6.67% to $2.42 trillion. The Fear & Greed index was at 11, reflecting extreme fear and caution among investors. Here’s everything that happened in the crypto market today based on CoinMarketCap data.
Bitcoin price dropped 6.94% over the past 24 hours to trade at $71,191.07. The leading cryptocurrency's market capitalization stood at $1.42 trillion. Its trading volume reached $74.55 billion as investors reacted to the sharp downturn.
CoinSwitch Markets Desk noted, “BTC is currently trading below $72,000. The move lower lacked a clear catalyst and appears largely sentiment-driven, with even constructive US–China commentary from President Trump failing to lift risk appetite.
CoinSwitch analysts further elaborated, “As price slipped below the $73,000–$74,000 support zone, it entered an area of dense long leverage, triggering forced liquidations and accelerating downside momentum, effectively pulling BTC toward the $72,000 liquidity pocket. Immediate support now sits near $71,500, while a clean break could expose the $66,000–$68,000 zone. Unless BTC reclaims $75,000, near-term risk stays skewed to further downside or volatile consolidation.”
The sell-off has raised concerns about further downside. Investor Michael Burry warned that Bitcoin may be repeating the same behavioral patterns seen during the 2020-2022 boom-bust cycle.
Burry questioned why the current 2024-2026 period would play out differently. He argued that the Bitcoin price is driven by liquidity and speculation rather than durable organic demand. He also pointed out that Bitcoin did not rescue markets during the 2023 banking crisis, crediting the AI trade instead.
Ethereum price fell 6.80% to $2,117.85, with its market cap dropping to $255.61 billion. Solana price decreased 7.14% to $91.58, though the Layer 1 blockchain still showed resilience with a market cap of $51.88 billion. XRP price dropped 8.87% to $1.45, and Dogecoin declined 5.46% to $0.1026. BNB was down 8.50% to $695.34.
Cardano was replaced by Bitcoin Cash at the tenth position on the world’s top cryptocurrencies by market cap. Cradano slipped 5.28% to $0.2842 while Bitcoin Cash dropped 0.72% to $527.60.
TRON, however, showed relative strength with just a 1.72% decline to $0.2815. The only major cryptocurrency to remain stable was USDC, which held flat at $0.9997. Tether (USDT) also traded steadily at $0.9980, up just 0.06%.
Also Read: Dogecoin Loses 10% of its Millionaires in 2026
Here are the top headlines impacting crypto prices today.
Senate Democrats reconvened on February 4th for a closed-door meeting on the US Crypto Market Structure Bill that turned ‘positive,’ according to crypto journalist Eleanor Terrett. Sources noted it was ‘arguably the most productive Democratic meeting to date.’ Crypto firms have proposed new compromises to banks amid a stalemate over stablecoin provisions, according to Bloomberg.
The proposals include placing portions of stablecoin reserves with community banks. It also talks about allowing banks to issue their own stablecoins through partnerships. These concessions aim to address fears from community banks about losing deposits. It would also give small banks new revenue opportunities.
Senate Banking Committee Chairman Tim Scott told Fox News that the compromise from crypto firms and banks would keep ‘innovation here in America.’ He added that lawmakers can ‘protect consumers and community banks while still allowing innovation and competition to lower prices and expand access.’
The sharp decline in bitcoin price today triggered a massive wave of liquidations totaling more than $772 million in the past 24 hours. The bulk of these came from long positions, as traders who had bet on rising prices were caught off guard by the sudden downturn. This liquidation added fuel to the sell-off, creating a feedback loop where falling prices forced more positions to close, which in turn pushed prices even lower.
The decline has been most acute in the centralized finance (CeFi) sector, which fell 6.05% amid heavy losses in Binance Coin and other exchange tokens. However, pockets of resilience remained. White Whale surged over 28%, and DeFi newcomer River gained 13.69%, showing that selective opportunities still exist even in a down market.
Tether reported a strong Q4 2025 performance with USDT's market capitalization reaching $187.3 billion. Total reserves rose to $192.9 billion, including 96,184 BTC, 127.5 tons of gold, and $141.6 billion in US Treasuries.
Despite the October 2025 liquidation shock, USDT still grew 3.5% during the quarter. Meanwhile, the second and third-largest stablecoins declined 2.6% and 57%, respectively. On-chain USDT transfer volume hit a record $4.4 trillion in Q4, showing continued dominance in the stablecoin sector.
Cardano received a boost on February 4th from ETF filings, reclaiming the tenth position briefly among the world’s top ten cryptocurrencies by market cap. Volatility Shares Trust filed Form N-1A amendments covering spot Cardano ETF exposure, alongside 2x and 3x leveraged Cardano ETFs.
The filing signals that issuers believe market demand and regulatory conditions are worth testing. However, the rally didn't last long; Cardano’s tenth position has again been taken by yet another coin, Bitcoin Cash, in the crypto market today.
Binance co-founder He Yi talked of a coordinated ‘withdrawal campaign’ targeting the exchange. He Yi noted that Binance's on-chain address balances actually increased after the campaign began. The co-founder suggested that regularly testing withdrawals across all trading platforms can serve as an effective stress test for exchanges.
Also Read: Solana Bounces Back After Sell-Off: $120 Level in Focus
Investors are on high alert as macro headwinds and institutional outflows continue to test key technical support levels. With crypto prices today showing broad weakness and the Bitcoin price at $71,000, traders are watching closely to see if further downside emerges or if buyers step in at current levels. The ongoing US stablecoin legislation discussions and potential ETF approvals could offer positive catalysts. However, near-term volatility appears likely to persist.
1. Why is the crypto market down today?
Crypto prices went down because of a massive sell-off in long positions of Bitcoin and other top altcoins. This reduced crypto prices today. Traders who were using borrowed funds had to close their positions, which made the selling pressure even worse. As people got worried, more investors moved their funds into stablecoins, pushing prices further down in the market.
2. What is the Bitcoin price today?
Bitcoin was trading at $71,191 at the time of this writing. The $71,000 level shows that it hasn't fallen below a price that many are watching, even during strong selling. Traders are keeping an eye on this price level as a possible support area. Although the short-term mood is cautious, holding this level could mean buyers are stepping in rather than selling out of fear.
3. What is the latest crypto news?
Recent news includes discussions in the US Senate about stablecoin rules. Changes could be coming to how stablecoins are created and supported. Tether also shared good quarterly numbers, with growth in its reserves and the amount of funds transferred. Binance discussed issues with withdrawals, and market rules are still being discussed.
4. How is Cardano performing today?
Cardano (ADA) price went down amid selling pressures and a broader market risk-off mood. However, it did show some strength compared to other top coins. On February 4th, news of the ETF filing for ADA drew positive attention and potential institutional interest. However, it seems that the support couldn’t last today.
5. What is the future crypto market outlook?
Investors should follow Bitcoin’s price around $71,000, the total market volume, and any changes in how people are feeling, like the Fear & Greed Index. News on stablecoin rules, ETF approvals, and economic data can affect the market's direction. Keeping up with information and handling risk is key when things are changing quickly.
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