January 26 - February 1, 2026
Market Cap
+8.9%
Volume
+21.6%
BTC Dominance
+0.5%
Sentiment
The cryptocurrency market staged a significant recovery during Week 5 of 2026, with total market capitalization climbing from $3.05 trillion to $3.32 trillion, representing an 8.9% weekly gain. Bitcoin rebounded sharply from its January 26 low of $83,300 to trade near $95,000 by week's end, effectively erasing the early-week correction that had pushed the Fear and Greed Index to extreme fear levels.
Trading volume increased 21.6% over the week, rising from $139 billion to $169 billion, indicating renewed market participation. Bitcoin dominance remained elevated at 57-60%, reflecting continued institutional preference for the leading cryptocurrency amid macro uncertainty. Spot ETF inflows resumed their positive trajectory after brief outflows on January 24-26.
The gaming and infrastructure sectors outperformed, with Axie Infinity leading gains on its bAXS reward system launch. Meanwhile, privacy tokens faced headwinds, with Monero experiencing significant volatility. Regulatory developments dominated headlines as the Senate prepared landmark crypto market structure legislation hearings, while Coinbase announced plans to transform into an "everything exchange" combining crypto, stocks, and commodities.
Coinbase CEO Brian Armstrong announced plans to transform the platform into an all-in-one exchange combining crypto, tokenized equities, prediction markets, and commodities. The announcement includes 24/7 stock trading with zero commissions and AI-powered financial planning.
Bitcoin fell below Tesla in the rankings of global assets by market capitalization amid a sharp market downturn. The leading cryptocurrency briefly slid below $78,000 on thin weekend liquidity before recovering.
White House crypto adviser David Sacks announced that the Senate is expected to hold hearings on landmark crypto market structure legislation. The Clarity Act aims to resolve the jurisdictional dispute between the SEC and CFTC.
Solana DeFi platform Step Finance was hit by a major security breach resulting in $27 million stolen from its treasury. The governance token plummeted over 80% following the announcement.
The United States imposed sanctions on crypto exchanges tied to Iran for the first time, accusing them of facilitating transactions for the Islamic Revolutionary Guard Corps. This marks a significant escalation in crypto-related geopolitical enforcement.
Axie Infinity
AXS
+15.8%
Axie Infinity surged on the January 23 launch of its bAXS reward system, designed to reduce sell pressure and boost ecosystem sustainability. Gaming tokens defied the broader market crash, with AXS experiencing strong momentum carry-over.
Solana
SOL
+4.3%
Solana showed relative strength with network fundamentals remaining robust at 27.1 million active addresses, up 56% week-over-week. Solana ETFs surpassed $1 billion AUM, attracting institutional capital despite Bitcoin weakness.
BNB
BNB
+3.7%
BNB gained on the week as the January 2026 Fermi Hard Fork on BSC reduced block times to 0.45 seconds, improving network performance and competitiveness against Solana.
XRP
XRP
+2.4%
XRP posted modest weekly gains amid intense volatility, bouncing off support levels around $1.89-$2.21. Regulatory clarity and institutional optimism for payments use cases prevented deeper losses.
Avalanche
AVAX
+1.9%
Avalanche demonstrated resilience during the market volatility, benefiting from continued institutional interest in high-throughput Layer 1 solutions and DeFi ecosystem growth.
Monero
XMR
-33.0%
Monero experienced severe volatility, dropping sharply before partial recovery. The decline was driven by broader market sell-offs and continued delisting pressures on privacy-focused tokens.
Ethereum
ETH
-13.5%
Ethereum suffered significant losses during the selloff, with $630 million in institutional fund outflows during the week as investors rotated to safer assets.
Litecoin
LTC
-9.8%
Litecoin fell over the week, trading between $71 and $82, closing below all major moving averages. The decline was part of the broader market downturn driven by Fed rate hold announcements.
Cardano
ADA
-7.5%
Cardano fell during the week and hit its lowest price levels since 2024. The decline was driven by broader market capitulation when $1.7 billion in futures positions were liquidated.
Algorand
ALGO
-6.8%
Algorand underperformed as the smart contract platform sector faced broad selling pressure. The token struggled to maintain support amid reduced trading volumes.
The week ahead brings several pivotal events that could shape market direction. Major token unlocks for Rainbow (180M tokens on Feb 4) and Berachain (63.75M tokens on Feb 6) could introduce short-term volatility as significant supply enters circulation. NFT Paris, Europe's largest Web3 summit, kicks off on February 5 with over 20,000 participants expected. The conference could drive renewed interest in NFT and tokenized asset markets, with major announcements from speakers and exhibitors creating potential trading opportunities. Investors should monitor Bitcoin's ability to hold above $90,000 as a key support level. The recovery rally needs confirmation with sustained volume, while any failure to maintain current levels could trigger renewed selling pressure. Institutional sentiment will be crucial as markets digest the busy regulatory calendar ahead.
Rainbow (RNBW) Token Unlock
Release of 180M RNBW tokens (18% of supply) could create selling pressure.
NFT Paris Conference Opens
Europe's largest Web3 summit may drive renewed interest in NFT markets.
Berachain (BERA) Token Unlock
63.75M tokens (59% of circulating supply) unlock, significant volatility expected.
Disclaimer: News content is for informational purposes only and should not be considered financial advice. Market conditions can change rapidly. Always conduct your own research.
