New York, Feb 2, 2026, 17:34 (EST) — After-hours
- XRP climbed roughly 1.3% to $1.62, fluctuating in a range from $1.53 to $1.66
- Ripple announced it holds full EU Electronic Money Institution approval in Luxembourg
- After a surge in crypto liquidations, traders are zeroed in on Fed liquidity.
XRP climbed roughly 1.3% to $1.62 in late New York trading Monday following Ripple’s announcement of a full EU electronic money licence in Luxembourg. Bitcoin gained around 1.9%, while ether rose about 1.3%, based on pricing data. XRP’s range for the day was between $1.53 and $1.66.
The market is trying to regain footing after another wave of forced selling. Bitcoin investors have unwound $2.56 billion worth of positions in recent days, according to CoinGlass, which tracks automatic closures of leveraged bets, known as “liquidations.” “What we’ve seen the last few months is probably people taking a step back,” said Adam McCarthy, senior research analyst at Kaiko. (Reuters)
Macro jitters are dominating, with traders focused on what a new Fed chair might mean for liquidity. Donald Trump’s nominee, Kevin Warsh, has pushed for shrinking the Federal Reserve’s balance sheet, but Joe Abate, U.S. rates strategist at SMBC Capital Markets, called actual balance sheet reduction “a nonstarter.” The Fed’s bond holdings hit about $9 trillion in 2022, then dropped to roughly $6.6 trillion by late 2025 after years of so-called “quantitative tightening” — allowing bonds to mature without reinvestment — before the central bank restarted Treasury bill buys in December to keep liquidity flowing. (Reuters)
Ripple announced that Luxembourg’s financial watchdog, the Commission de Surveillance du Secteur Financier, has granted full approval of its Electronic Money Institution licence, following preliminary clearance last month. “Securing our full EMI license in the EU is a transformative milestone,” said Cassie Craddock, managing director for the UK and Europe. Last month, Ripple also obtained an EMI licence and cryptoasset registration from the UK’s Financial Conduct Authority, bringing its total to more than 75 regulatory licences worldwide. (Ripple)
An EMI licence allows a company to issue electronic money and offer specific regulated payment services, moving it nearer to core payment infrastructure. When it comes to XRP, traders usually see this as a boost for its payments use-case, even though the token’s price largely moves with the overall risk sentiment.
Still, the rally felt tentative. Crypto’s been acting like a high-beta risk barometer once more, with volatile moves spiking as liquidity dries up and leveraged bets pile on.
XRP still faces a lingering regulatory shadow in the U.S., though tensions have eased. The Securities and Exchange Commission wrapped up its lawsuit against Ripple in August, imposing a $125 million fine and maintaining an injunction on certain institutional XRP sales. (Reuters)
Still, the risk is evident: holding a regulatory licence doesn’t guarantee immediate token demand. Tighter financial conditions could quickly pressure speculative traders. Should the dollar strengthen or investors pull back further, XRP could slide fast on thin order books.
Next, the handover clock ticks down alongside the politics entwined with it. Warsh needs Senate approval, and traders will be alert for any hint that balance-sheet tightening might continue, even as chatter about rate cuts intensifies. The Fed confirmed Jerome Powell’s term as chair runs through May 15, 2026. (Federal Reserve)
