The crypto market has fallen to about $2.6 trillion in value after a sharp weekend sell-off, with Bitcoin losing support above $78,000 and traders eyeing $75,000 as the next key level. More than $2.58 billion in leveraged positions were liquidated in 24 hours, deepening losses across major altcoins including Ethereum, Solana, and BNB. Market sentiment has turned extremely fearful as indicators show many coins in oversold territory, while weak demand from large investors is failing to offset the forced selling.

On February 1, 2026, fresh data on India's crypto tax regime for FY 2024–25 showed ₹511.83 crore collected as TDS, with a significant divergence between tax deducted and actual liability. Nearly half of investors ended the year with net losses, yet many still owed or paid tax on gains that could not be offset. Ahead of the Union Budget 2026, industry participants are urging reforms to the 30% tax, loss set-off rules, and the 1% TDS on virtual digital asset trades.

XRP has entered 2026 with gains of more than 20%, lifting it back among the largest digital assets by market value and sparking renewed debate about its long-term prospects. While Ripple originally positioned XRP as a fast, low-cost bridge for cross-border payments, banks have largely favored Ripple's software tools, stablecoins, or internal tokens instead of using XRP directly. The rapid expansion of dollar-pegged stablecoins and Ripple's own evolving business strategy have prompted analysts to question how central XRP remains to the company's future.

In November 2025, Samourai Wallet developers Keonne Rodriguez and William Lonergan Hill agreed to forfeit about $6.3 million in Bitcoin, equal to roughly 57.55 BTC, as part of a plea deal with the U.S. Department of Justice. Blockchain data cited in reports indicates the U.S. Marshals Service moved this Bitcoin to a Coinbase Prime address that now shows a zero balance, prompting concerns it was sold despite an executive order instructing that forfeited BTC be retained in a Strategic Bitcoin Reserve. Senator Cynthia Lummis has questioned why agencies are allegedly liquidating Bitcoin when it has been designated as a long-term strategic asset.

At the start of the trading day, Bitcoin, Ethereum, and XRP moved sharply higher, lifting the overall crypto market value to more than $3.2 trillion. Bitcoin climbed past $91,000, recovering roughly $2,500 from its recent low, while XRP advanced over 5% and Ethereum also gained. The move has been fueled by short liquidations, the closure of traditional stock markets, and broader optimism linked to improved expectations for economic stability.

On December 28, 2025, a widely shared XRP wealth distribution chart prompted debate over ownership concentration and whether retail buyers are being priced out. The shared data say over 6 million addresses hold 500 XRP or less, while one post noted 1,000 XRP now costs about $1,750 versus $500 just over a year earlier; others cited roughly 16B XRP on exchanges and Bitcoin influence on market direction.

A vulnerability in Trust Wallet's browser extension version 2.68 led to nearly $6 million in crypto losses across Bitcoin, Ethereum, and Solana on December 24–25, 2025. Trust Wallet has confirmed the issue, urged users to stop using v2.68, and instructed them to upgrade to version 2.69 while its team investigates and contacts affected users.

Bitcoin is trading sideways after a low‑activity weekend, slipping under the key $90k mark with a decline of more than 1% in the past 24 hours. The price is fluctuating between support at $78,960–$83,130 and resistance at $92,588–$101,570, with analysts suggesting this range could persist through late December and into early January. A decisive move above $93,550 or below $86,000 may signal whether buyers regain control or a deeper corrective phase is starting.

Interest in XRP exchange traded funds has intensified after Cboe approved a 21Shares XRP ETF under the XR ticker, expanding institutional routes into the token. Ripple CEO Brad Garlinghouse noted that XRP ETFs gathered $1 billion in assets in about 17 days, and analyst Mickle believes that, if inflow trends hold, ETF holdings could grow to $10 billion within a year. He argues that easier brokerage access, growing XRP Ledger functionality, and shifting market cycles are pushing XRP further into an institutionally driven phase.