New York, Feb 3, 2026, 13:48 ET — Regular session
- XRP dropped alongside bitcoin and ether amid ongoing risk aversion.
- Ripple announced it has secured full EU electronic money approval in Luxembourg.
- Traders are closely tracking U.S. policy updates, spanning crypto laws to government funding debates.
XRP dropped roughly 6% on Tuesday, hitting $1.54 amid continued selling across big cryptos. Bitcoin slipped about 6% to $73,577, while ether took a sharper hit, falling nearly 10% to $2,120.66.
This shift is significant as leverage continues to unwind sharply. Bitcoin holders have dumped $2.56 billion in the past few days, data from CoinGlass shows, following a wider selloff in risk assets. “Investors were looking for an excuse to lighten up and they finally got several,” noted David Morrison, senior market analyst at Trade Nation. Reuters
Policy uncertainty remains a drag. A White House meeting aimed at breaking the deadlock on crypto “market structure” legislation wrapped up without a deal, Reuters reported. The sticking point: banks and crypto firms are split over whether stablecoins—tokens usually pegged to a currency and designed to maintain steady value—should be permitted to pay out interest-like rewards. “The White House continues to engage in productive conversations to advance President Donald Trump’s agenda,” spokesman Kush Desai said in a statement. Reuters
Ripple is shifting focus to a new angle: licensing. The company announced it secured full approval for an Electronic Money Institution (EMI) license from Luxembourg’s Commission de Surveillance du Secteur Financier. This passport-style license lets Ripple issue electronic money and offer payment services across the EU. “Securing our full EMI license in the EU is a transformative milestone,” said Cassie Craddock, Ripple’s managing director for UK & Europe. Ripple
Macro factors continue to steer the market. Kevin Warsh, nominated to chair the Federal Reserve, has pushed for shrinking the Fed’s multi-trillion-dollar balance sheet, a move that could tighten financial conditions by pulling liquidity from markets. Joe Abate of SMBC Capital Markets noted Warsh “may want a smaller balance sheet and smaller Fed footprint in financial markets,” but he and others also pointed out the practical challenges involved. Reuters
The data calendar is now uncertain. The Bureau of Labor Statistics announced the January employment report won’t come out Friday due to the partial government shutdown. “The release will be rescheduled upon the resumption of government funding,” Emily Liddel told Reuters. Reuters
For XRP, the result is a token behaving more like a macro proxy than just a single-coin play. Ripple’s license win barely eased the pressure from increased volatility and a market still searching for a bottom.
But it can swing the other way just as quickly. If the shutdown lingers and rate forecasts keep changing, traders could face another wave of forced selling—enough to push coins past key technical points before buyers step in.
Some investors are once again attempting to disentangle “regulation progress” from “price action.” The divide is substantial at the moment, and XRP hasn’t escaped its effects.
Washington is back in focus as markets await the next move: the U.S. House of Representatives advanced a Trump-backed plan to end the shutdown, with a final vote expected later Tuesday, Reuters reported. Mike Johnson’s slim majority in the House leaves the outcome uncertain. The timing of when stalled data—like jobs figures—will resume also hangs in the balance.
