New York, Feb 3, 2026, 10:09 ET — Regular session
- XRP dropped roughly 3% amid a steady dollar and weak appetite for crypto risk
- Dubai saw a $280 million diamond tokenization pilot using Ripple-backed infrastructure
- Traders are focused on Fed signals and when delayed U.S. data will be released
XRP dropped around 5 cents, or close to 3%, settling at $1.58 on Tuesday as major cryptocurrencies showed weakness.
The decline follows a shift toward “higher-for-longer” interest rate expectations and a stronger dollar, a combination that usually saps appetite for riskier assets. The dollar index hovered near 97.62, with bitcoin down 0.3% at $78,185 and ether slipping 2.2% to $2,288. Reuters
Nerves around rates have tightened since Donald Trump picked former Fed governor Kevin Warsh to head the Federal Reserve. Atlanta Fed President Raphael Bostic warned Warsh faces a “tall task” convincing his colleagues, following last week’s 10-2 vote to hold rates steady in the 3.50%-3.75% band. Reuters
XRP grabbed attention with token-specific news. Billiton Diamond teamed up with tokenization company Ctrl Alt to tokenize over AED 1 billion ($280 million) worth of certified polished diamonds on the XRP Ledger, using custody tech from Ripple. “Ripple is proud to support” the project, said Reece Merrick, highlighting how their technology connects physical assets with digital markets. Ctrl Alt
In Washington, the policy debate remains loud. Fed Governor Stephen Miran told Fox Business he expects “more than a point” in rate cuts this year, labeling current policy as too tight for the economy. Reuters
Traders face a headache with U.S. data timing. The Bureau of Labor Statistics announced it won’t publish the January jobs report on Friday as planned due to a partial government shutdown. The agency will update its schedule once funding returns.
Tokenization — the process of converting a physical asset into a digital token on a blockchain — has emerged as a key narrative for crypto companies aiming to prove value beyond mere trading. Yet, XRP’s price moves indicate that broader macroeconomic factors remain the dominant drivers.
XRP frequently acts as a high-beta indicator for the wider crypto sentiment. When the dollar strengthens and expectations for rate cuts fade, demand dries up fast, making any rebounds appear shaky.
There’s plenty that could still go wrong. The diamond project remains a pilot, with wider rollout hinging on regulatory green lights. At the same time, renewed turmoil in bitcoin or dollar funding markets could quickly drag XRP back into the fray.
Traders are gearing up to dissect the Federal Open Market Committee minutes from the January 27-28 meeting, set for release on Feb. 18. They’ll be hunting for signals on whether policy will remain tight if inflation eases and growth stays steady.
