NEW YORK, Feb 4, 2026, 06:14 (EST) — Premarket
- XRP slipped roughly 1.3%, hovering around $1.58 in early New York trading
- Ripple announced it has obtained a full electronic money licence from Luxembourg, covering the entire EU.
- Traders are zeroed in on changing rate-cut expectations and the looming Fed chair succession
XRP dropped roughly 1.3% to about $1.58 Wednesday morning, as traders stayed cautious despite positive regulatory updates for Ripple. The token has shed nearly a third of its value since peaking near $2.42 in early January. (Investing.com Canada)
The selloff matters because XRP has been acting as a high-beta proxy for crypto risk appetite just as rate expectations shift again. The spotlight recently fell on President Donald Trump’s pick, Kevin Warsh, to head the Federal Reserve. Investors are now bracing for a smaller Fed balance sheet — meaning less bond holdings and reduced backing for risk assets. Manuel Villegas Franceschi from Julius Baer’s next generation research team called Warsh’s nomination “the tipping point for the crypto drawdown.” (Reuters)
XRP faces a tricky moment. Ripple is working to expand its reach in regulated payments just as markets turn cold on anything rate-sensitive.
Ripple announced Monday it has obtained full approval for an Electronic Money Institution (EMI) licence from Luxembourg’s financial regulator, the CSSF, following preliminary clearance last month. “Securing our full EMI license in the EU is a transformative milestone,” said Cassie Craddock, Ripple’s managing director for the UK and Europe. (Ripple)
An EMI licence allows companies to issue electronic money and operate payment services within the EU framework. Ripple is using the Luxembourg approval to boost its Ripple Payments operations throughout the bloc, aiming to build a network of licences in key markets.
On the market, this message clashes with another: the cost of money might not drop as quickly as traders expected just weeks ago. When that narrative gains traction, XRP has typically moved in line with the wider crypto trend.
Washington is stirring the pot as well. Democratic senators on the Senate Banking Committee have urged the Republican chair to postpone the nomination hearings for Warsh, pointing to ongoing Justice Department probes into sitting Fed officials. (Reuters)
XRP’s recent swings highlight the market’s volatility. It dropped 2.6% on Tuesday after climbing 1.8% the previous day, with momentum shifting rapidly and stops triggering on both ends.
That chop cuts both ways. If rate-cut expectations continue to fade, crypto could face heavier outflows. And licensing news might not boost token demand unless payment volumes and on-chain activity pick up.
The next key events are just around the corner. Investors are focused on the European Central Bank and Bank of England meetings on Thursday (Feb. 5), along with U.S. labor data, which saw its main jobs report delayed from Friday (Feb. 6) due to a partial government shutdown, noted Antje Praefcke of Commerzbank. (Reuters)
