The crypto sell-off accelerated over the past 24 hours, erasing early 2026 gains amid rising geopolitical tensions, which have hit the crypto sector harder than most financial markets.
Investors Pull Back from XRP ETFs
Investor caution is now evident in U.S. ETF flows. XRP-focused ETFs, which began launching just over two months ago, saw strong demand initially Canary Capital’s XRPC even set a record for trading volume on its debut day in 2025. After minor losses on January 7, the funds enjoyed a green streak from January 8 to January 16.
That trend reversed sharply on Tuesday, the first U.S. trading day after escalating tensions between the U.S. and EU over the weekend. Data from SoSoValue shows investors withdrew $53.32 million, marking the largest net outflow for these funds. Cumulative net inflows fell from $1.28 billion to $1.22 billion in a single session, wiping out nearly all gains from the previous week.
XRP Price Declines
The outflows intensified XRP’s bearish momentum. After peaking at just over $2.40 on January 6 a roughly 30% gain in a few days the asset quickly fell below its $2.00 support on Monday and even touched $1.84 on some exchanges. It now struggles to stay above $1.90 after dipping to $1.86 during overnight trading. Analysts note that the broader market trend, particularly Bitcoin’s performance, continues to dominate XRP’s movements.
