FOR IMMEDIATE RELEASE

Global Crypto Market Sheds $410 Billion Amid Intensifying Downtrend

Boca Raton, FL — February 5, 2026 — The global cryptocurrency market has erased approximately $410 billion in value since the start of the year, as major digital assets face mounting macroeconomic pressure and weakening institutional demand. Total market capitalization has fallen from $2.97 trillion to $2.57 trillion, marking one of the sharpest early‑year contractions in recent cycles.

Major Assets Under Pressure

Bitcoin, Ethereum, and XRP have all entered sustained downtrends:

• Bitcoin has declined roughly 14%, trading near $78,000.
• Ethereum has dropped 26% to approximately $2,300.
• XRP has fallen 16%, reflecting broad sector‑wide weakness.

The downturn follows a brief rally in early January and has since expanded across nearly all major tokens, signaling a decisive shift toward risk‑off sentiment.

Drivers Behind the Market Decline

Analysts attribute the selloff to a combination of macroeconomic and market‑specific factors:

• A hawkish Federal Reserve outlook following a new chair nomination has strengthened the U.S. dollar and pressured speculative assets.
• Accelerating outflows from spot Bitcoin ETFs in late January have reduced a key source of institutional demand.
• Liquidity constraints have amplified volatility, deepening the market’s downward trajectory.

February Outlook Remains Cautious

AI‑driven forecasting models anticipate a challenging month ahead:

• Bitcoin is expected to trade within a $75,000–$90,000 range, with some models warning of potential retests near $70,000.
• Ethereum may drift toward $2,100 amid continued downside pressure.
• XRP is projected to hover around $1.40, lacking clear directional catalysts.

Long‑Term Optimism from Bitwise

Despite near‑term turbulence, Bitwise Asset Management maintains a bullish long‑term outlook for Bitcoin:

• The firm forecasts a new all‑time high in 2026, driven by expanding institutional participation.
• Tens of billions in anticipated inflows through ETFs and brokerage platforms are expected to reshape market structure.
• Bitwise notes declining volatility and weakening correlation with U.S. equities, reinforcing Bitcoin’s role as a distinct portfolio asset.
• The firm suggests Bitcoin could approach $1 million within the next decade as adoption accelerates and halving cycles become less influential.