Cryptocurrency is a digital currency that operates independently of a central authority, using blockchain technology for secured transactions. Crypto currency has increased in popularity as both a method of payment and a speculative investment. 

The crypto market has been experiencing a significant downturn. In just 22 days, the crypto market has lost more than $900 billion, showing how fast prices have dropped. 

Bitcoin seems to be leading the fall of the cryptocurrencies. On January 13, 2026, Bitcoin (BTC-USD) closed at a value of $96,929.33. Today, February 9, 2026, Bitcoin closed at a value of $70, 202,02. This equates to a 27% loss in value. As prices fell quickly, many traders were forced to exit their positions. More than $7 billion worth of trades were closed automatically due to losses.

Altcoins, cryptocurrencies other than Bitcoin are also struggling, seeing a sharp decline in value.  XRP (XRP-USD) has fallen drastically. On January 12, 2026, XRP closed at a value of $2.16/ share. Today, February 9 2026, XRP closed at a value of $1.44/ share. This equates to a  loss of 33% in a month’s time period. Ethereum (ETH-USD), has also taken its bumps. On January 13, 2026, Ethereum closed at $3354.72/ share. Today, February 9, 2026, it closed at $2117.22/ share resulting in almost a 37% loss in value over the past month. 

Solana (SOL-USD), another altcoin, was valued at $146.75 on January 13, 2026. On Feb. 9, 2026, Solana closed at $87.22, a loss of 40% in value. These sharp price swings have triggered forced selling. Overall, the continued losses in altcoins suggest investors are stepping back from riskier assets rather than buying during the downturn.

The following factors are also playing a role in the decline of the crypto market:

1. Investors are putting more money into safer assets such as precious metals in lieu of cryptocurrencies.
2. Hopes for U.S. interest rate cuts have dwindled. Markets now believe that there is only a 10% chance that the Fed will cut rates at the March 18th meeting.

The drop in crypto seems to be forcing investors to sell in order to prevent any further losses. However, history indicates that the opposite may be beneficial.

Investors who bought practically any Bitcoin dip since 2009 eventually ended up in the green. From that perspective, it might make sense for investors to start building a small position, as long as they are willing to hold the cryptocurrency for several years to maximize their chances of earning a positive return.

Tickers to consider:    JTAI, PPCB, FBRX

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