XRP Drops to $1.80 as Tariff Fears Trigger Crypto Selloff

XRP hit $1.80 on January 25. Lowest since mid-December.

The drop wiped out everything gained in early 2026. Tariff tensions between major economies sparked the selloff, with macroeconomic uncertainty adding fuel. Bitcoin fell below $35,000 while Ethereum approached $2,000—no one was spared.

Trading volume spiked across exchanges. Binance reported a surge in sell orders as traders rushed to adjust positions. XRP’s 24-hour volume more than doubled compared to the previous week, according to Coinbase data released January 26.

The decline wasn’t isolated. CryptoCompare analysts noted on January 25 that altcoins broadly suffered as the market reassessed risk amid global trade concerns. XRP’s market cap dropped over 10% in 24 hours, per CoinMetrics.

Tariff announcements from trade authorities spooked investors. Financial markets hate uncertainty, and crypto reacted predictably. The abruptness caught some off guard—XRP had started the year strong.

Grayscale CEO Michael Sonnenshein said the firm stays focused on long-term strategy despite short-term choppiness. Grayscale’s XRP Trust saw net asset value fluctuations matching the price action. Not surprising given the volatility.

Ripple Labs hasn’t commented. Their silence leaves investors guessing about internal responses or potential strategic pivots. The SEC’s case from December 2020 still hangs over the token, adding another layer of complexity.

Traders on January 26 watched the $2.00 level closely. That psychological barrier could determine near-term direction. Break above might signal recovery; failure to reclaim it could mean further downside.

Regulatory scrutiny continues across jurisdictions. Any new rules could shift prices and volumes quickly. The crypto community awaits clarity on both trade tensions and regulatory developments.

For now, XRP’s path depends largely on external factors beyond its control. The market remains on edge.