NEW YORK, Feb 5, 2026, 06:36 EST — Premarket
XRP dropped 13.78% to $1.36 on Thursday, deepening a broad selloff among top cryptocurrencies. Over the last 24 hours, it fluctuated between $1.36 and $1.59, with volume hitting about $6.0 billion, according to CoinMarketCap. (CoinMarketCap)
This move is significant since XRP tends to behave like a leveraged indicator of crypto risk appetite. It usually reacts quickly and with greater swings when traders pull back on risk.
Bitcoin hovered just above $70,000, while ether slipped roughly 0.7%, adding strain to the wider market. Analysts linked the recent dip to President Donald Trump’s pick of Kevin Warsh as the next Fed chair, anticipating Warsh might tighten the Fed’s bond holdings and drain liquidity from riskier assets. “The market fears a hawk with him,” said Manuel Villegas Franceschi at Julius Baer. Deutsche Bank analysts pointed to “massive withdrawals” from institutional ETFs, including over $3 billion pulled from U.S. spot bitcoin ETFs in January alone. (Reuters)
The XRP ecosystem saw a compliance feature finally go live. On Feb. 4, Bithomp, an XRP Ledger explorer, confirmed the PermissionedDomains amendment was activated on the XRP Ledger mainnet. According to XRPL documentation, permissioned domains act as controlled zones that restrict access via credentials, though no active ledger features currently use these domains. (XRPL Explorer)
Flare, the network behind the XRP-linked token FXRP, announced on Feb. 3 the launch of a Morpho-powered lending platform through a Mystic interface. FXRP holders can now use their tokens as collateral to borrow assets like stablecoins, opening a fresh DeFi avenue for XRP users without needing to sell their spot XRP. (Flare)
Upgrades are pushing back against the tape. Should bitcoin break below key support levels traders monitor closely, forced selling could accelerate—and XRP usually takes the hit.
Regulation still swings the pendulum for XRP despite last year’s legal breakthrough in the U.S. The SEC wrapped up its lawsuit against Ripple Labs in August, cementing a $125 million fine and an injunction restricting institutional XRP sales. (Reuters)
Macro takes center stage once more. The U.S. Bureau of Labor Statistics announced the delayed January jobs report is set for release on Wednesday, Feb. 11, followed by January’s consumer inflation figures on Friday, Feb. 13. Traders will lean on these data points to recalibrate rate expectations and set the mood for risk assets, crypto included. (Reuters)
