XRP Drops 20%, Bitcoin Falls Below $95K as Trade Tensions Stoke Market Sell-Off

XRP experienced a sharp decline, dropping over 20% in the past 24 hours. The crypto fell from a high of $2.91 to a low of $2.01, marking its lowest point since December 2024.

XRP experienced a sharp decline on February 3, 2025, dropping over 20% in the past 24 hours. The crypto fell from a high of $2.91 to a low of $2.01, marking its lowest point since December 2024. Just two days ago, XRP had surged to $3.18 before the downturn.

Following the steep drop, XRP has shown signs of recovery. The token has regained the $2 level and is now trading at $2.32, reflecting a 20% rebound from its lowest point. However, it remains 19% below its price from the previous day.

Bitcoin and Altcoins Also Face Heavy Losses

XRP was not the only cryptocurrency affected by the market downturn. Bitcoin fell to $91,000 after reaching $100,000 just two days earlier. Other altcoins, including Dogecoin and Shiba Inu, recorded even larger declines, with losses nearing 40%.

Market-wide liquidations have exceeded $2.21 billion in the past 24 hours, with long positions making up the majority at $1.87 billion. Binance has recorded the highest amount of liquidations among trading platforms.

Trade Tensions Blamed for Market Volatility

Analysts have linked the crypto market downturn to recent trade policies introduced by U.S. President Donald Trump. On February 1, 2025, the administration imposed a 25% tariff on imports from Mexico and Canada and a 10% tariff on goods from China.

Mexico, Canada, and China have responded with their own tariffs and legal challenges. The uncertainty surrounding these trade disputes has contributed to a broader market sell-off, affecting not just cryptocurrencies but also traditional financial markets.

Ripple Unlocks 1 Billion XRP from Escrow

Ripple has released 1 billion XRP from its escrow accounts, valued at around $3.10 billion at current prices. The tokens were unlocked in two transactions from accounts identified as ‘Ripple (26)’ and ‘Ripple (27).’

As part of its usual strategy, Ripple is expected to release only a portion of these tokens into the market while re-locking the rest for future use. The company has historically allocated 20-25% of unlocked XRP for sales, partnerships, and institutional transactions.

Investors Watch for Potential Market Recovery

Despite the recent volatility, many investors remain optimistic about a potential rebound. Some market analysts suggest that XRP could reach the $4 range in the next bullish cycle.

For now, XRP has stabilized above $2, showing resilience after the sharp decline. Investors and traders continue to monitor market conditions as geopolitical and economic developments unfold.

FAQs:

What caused XRP to fall drastically?

XRP fell due to broader crypto market sell-offs, which are linked to recent U.S. trade policies that have impacted the market.

Did XRP recover after the steep drop?

Yes, XRP rebounded 20% after hitting a low of $2.01 and is currently trading at $2.32.

How much XRP did Ripple release from escrow?

Ripple released 1 billion XRP, valued at $3.10 billion, with only a portion set for market use as per their usual strategy.