XRP Today's News: ETF weekly outflow of $52.3 million, Federal Reserve's hawkish stance hits bulls hard

XRP Today’s news shows prices are under pressure. Trump nominates hawkish Kevin Warsh as Federal Reserve Chair; ETF weekly outflows amount to $52.3 million; XRP drops to $1.59. $1.5 is a key support level; breaking below tests $1.00. On February 2, the White House discussed the Market Structure Bill, with a medium-term target of $2.5.

Hawkish Shift by the Federal Reserve Sparks Crypto Market Sell-Off

The core negative news for XRP today stems from a sharp shift in the Federal Reserve’s policy outlook. Last week, Fed Chair Powell lowered market expectations for rate cuts in the first half of 2026. During the FOMC press conference, Powell stated that elevated inflation and a robust labor market support keeping interest rates unchanged. Powell added that policymakers will assess upcoming data and adjust policies accordingly at each meeting.

This statement increased market uncertainty about policy prospects and pressured risk assets. As a highly volatile asset class, cryptocurrencies tend to be the first to react to changes in rate expectations. The high interest rate environment raises the opportunity cost of holding non-yielding assets like cryptocurrencies, prompting investors to favor fixed-income products such as U.S. Treasuries.

Trump’s nomination announcement coincided with U.S. Producer Price Index (PPI) data exceeding expectations, signaling that the Fed may adopt a more hawkish rate path. PPI, an important indicator of wholesale inflation pressures, above expectations suggests inflation may be stickier than the Fed anticipates. Powell’s hawkish stance, the potential appointment of an even more hawkish Fed Chair, and ongoing U.S. inflation signs collectively triggered a broad sell-off in the crypto market.

The news that Trump nominated Kevin Warsh as the next Fed Chair further heightened market anxiety. Given Warsh’s views on Fed monetary policy and his desire to shrink the balance sheet, economists generally see him as hawkish. Reducing the balance sheet means withdrawing liquidity from the market, which is especially unfavorable for overvalued assets. Stronger-than-expected PPI data worsened market sentiment, and Trump’s nomination as Fed Chair accelerated XRP’s plunge to a key support level.

XRP Spot ETF Weekly Outflows of $52.3 Million Shake Confidence

Risk aversion led to large outflows from XRP spot and BTC spot ETFs, intensifying selling pressure. The most notable data in today’s news is ETF fund flows. For the week ending January 30, XRP spot ETF net outflows totaled $52.26 million, while U.S. Bitcoin spot ETF net outflows reached $1.61 billion. This large-scale outflow indicates institutional investors are de-risking and reducing crypto exposure.

ETF fund flows are the most direct reflection of institutional sentiment. Unlike retail investors, institutions typically base decisions on strict risk management frameworks and macroeconomic analysis. When Fed policy turns hawkish and inflation data rises, institutions quickly adjust allocations, reducing holdings in high-risk assets. The $52.3 million weekly outflow, while smaller than Bitcoin ETF’s $1.61 billion, has a proportionally larger impact on a smaller market cap asset like XRP.

Despite weekly net outflows, demand for XRP spot ETFs rebounded on January 30, supporting a medium- to long-term bullish trend. This intraday demand recovery indicates not all institutions are fleeing; some investors may see current prices as buying opportunities. Since trading began in November last year, the U.S. XRP spot ETF market has accumulated net inflows of $1.18 billion, a positive sign that institutional interest in XRP remains.

Three Layers of Interpretation for XRP ETF Fund Flows

Weekly outflow of $52.3 million: Short-term risk aversion dominates, institutions temporarily retreat from risk assets

Single-day demand rebound: Not full panic, some institutions buy on dips

Cumulative inflow of $1.18 billion: Long-term trend remains positive, indicating institutional recognition of XRP’s fundamentals

Market Structure Bill Key to XRP’s Medium-Term Trajectory

Another focus of today’s news is the White House meeting scheduled for Monday, February 2. The U.S. government will hold discussions with representatives from the banking industry and crypto sector regarding the draft of the Market Structure Bill proposed by the U.S. Senate Banking Committee. This meeting is seen as a direct contest between traditional finance (TradFi) and decentralized finance (DeFi).

Major banking participants include the American Bankers Association (ABA) and the Independent Community Bankers of America (ICBA). The ABA previously targeted the U.S. digital asset space; in 2023, Senator Roger Marshall admitted that he and Senator Elizabeth Warren drafted the Digital Asset Anti-Money Laundering Act with ABA’s assistance. The bill proposes establishing a bank-like AML and CFT framework, which could stifle crypto development among the general public.

In 2025, the ABA was involved in controversy again, requesting the Office of the Comptroller of the Currency (OCC) to delay approval of Ripple and Circle’s banking charters. The ABA’s protective measures undermine President Trump’s efforts to position the U.S. as a crypto innovation hub, setting the stage for a fierce trading session on Monday. Legislation favorable to crypto development remains a key factor for XRP’s medium- to long-term bullish outlook.

Last month, the U.S. Senate Banking Committee delayed voting on the bill after Coinbase (COIN) withdrew support. Coinbase CEO Brian Armstrong stated that the bill stifles stablecoin incentives and allows U.S. banks to “ban competitors.” Internal disagreements reveal that even within the crypto industry, there is controversy over the bill’s content.

Analysts believe that passing the Market Structure Bill is crucial for increasing XRP’s adoption. If the bill passes smoothly, it will clear regulatory hurdles for XRP’s application within the U.S. financial system and could encourage more institutions to adopt Ripple’s cross-border payment solutions.

Technical Analysis: $1.5 Support at Risk of Testing $1.00

(Source: Trading View)

On February 1, XRP fell 3.47%, after dropping 3.98% the previous day, closing at $1.5890. The token experienced selling pressure greater than the overall crypto market, which declined 2.7%. Last week’s reversal caused XRP’s trading price to fall well below its 50-day and 200-day moving averages, indicating a bearish bias.

The recent sell-off signals a reversal of the bearish trend and invalidates the short-term bullish outlook. However, $1.5 provides a critical support level. Breaking below $1.5 could give bears an opportunity to test the psychological level of $1.00. If broken, the low of $0.7773 (Binance) after the October 10 flash crash will become the next key support. Importantly, breaking $1.5 will reaffirm the short-term bearish outlook and validate the bearish structure.

Conversely, if the price breaks above $2.0, it could target the upper trendline. Continued breakout above the trendline signals a bullish trend reversal, invalidating the bearish structure and confirming a medium-term bullish trend. On the daily chart, breaking $1.75 would pave the way to test the 50-day moving average ($1.9567) and $2.0. Sustained breakout above the 50-day moving average indicates a short-term uptrend reversal, with $2.2 within reach. After breaking $2.2, the 200-day moving average ($2.2502) will be the next target.

XRP Price Forecast Three-Stage Targets

Short-term (1-4 weeks): $1.5 (support held)

Medium-term (4-8 weeks): $2.5 (dependent on progress of the Market Structure Bill)

Long-term (8-12 weeks): $3.0 (confirmation after bill passage)

However, multiple positive fundamentals continue to offset technical negatives, supporting a medium-term bullish outlook. Expectations of Fed rate cuts, optimism about the Market Structure Bill, and increased XRP utility all reinforce the medium- to long-term price rise forecast.

In 12 weeks, these events could push XRP to a new all-time high of $3.66 (Binance). Breaking $3.66 could set a target of $5 within 6 to 12 months. But these optimistic forecasts depend on the Fed adopting a more dovish stance, the Bank of Japan lowering neutral interest rates (possibly to 1%-1.25%), strong inflows into the U.S. XRP spot ETF, and substantial progress on the Market Structure Bill.