Crypto Market in the Red: SOL, Bitcoin, and Ethereum in Bearish Correction

ConfusedWhale · 2026-02-05T16:14:10+00:00

In early February, the crypto market shows signs of weakness, with major digital currencies like Bitcoin and Ethereum experiencing significant declines. Market dynamics, such as anticipation of Federal Reserve policies and competition from traditional assets, contribute to this correction, leading to questions about the market's future direction.

ConfusedWhale

2026-02-05 16:14:10

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The crypto market landscape shows signs of weakness in the first days of February. Major digital currencies are operating with downward pressure as investors maintain a cautious stance amid macroeconomic developments. Bitcoin is trading at $67.56K with a -8.88% decline in 24 hours, while Ethereum and SOL follow the downward movement.

SOL and the Performance of the Altcoin Market

Solana (SOL) records a -9.12% correction in the last 24 hours, positioning at $84.50 and reflecting the widespread pressure affecting the altcoin segment. This market behavior is particularly significant given that SOL has been one of the symbols of recovery in previous cycles. Ethereum (ETH), on the other hand, falls -9.17% and is at $1.96K, showing that even the highest market cap projects are not immune to the current volatility.

Three Dynamics Explaining the Market Correction

The weakness observed in the crypto market is not random. First, anticipation of the Federal Reserve’s monetary policy decisions continues to freeze capital flows. Investors prefer to hold defensive positions in cash or assets like gold while resolving uncertainty over interest rates.

Second, competition for investment capital is intensifying between cryptocurrencies and traditional assets. Silver ETFs have generated returns exceeding 25% in just the first weeks of the year, diverting attention from the crypto space to more traditional alternatives.

Third, leveraged position liquidations accelerated the drop below $90,000 in Bitcoin. This technical market cleanup, although causing immediate volatility, contributes to a healthier environment for subsequent bullish movements.

Perspective: Where Is the Market Heading from Here?

The current correction presents both risks and opportunities. The behavior of SOL and other altcoins will be key to confirming whether there is a structural change or if it is a temporary consolidation within a broader crypto market. Next week will be decisive in understanding the direction the cryptocurrency market will take.

SOL-15,88%

BTC-14,74%

ETH-15,22%

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