Is This Why Ripple’s XRP Dropped To $2 Today?

Is it another sell-the-news day?

There appear to be no real catalysts behind the latest crash, other than over-indebted market participants. Nevertheless, some altcoins have been hit harder than others, such as Ripple’s XRP.

While ETH is down less than 6% daily and BNB is down 5%, XRP is down 7% and dropped to $2 on most exchanges earlier today. As a result, the cross-border token has fallen to a large buy wall that served as support and has managed to maintain its freefall in the past.

The purchasing wall in front $XRP in existence since $2 pic.twitter.com/wSe6hOFF8e

— CW (@CW8900) December 1, 2025

Interestingly, today’s price drop follows similar moves when spot XRP ETFs were set to launch. Recall that the underlying asset plummeted after the first such product, released by Canary Capital, hit US markets in mid-November, despite its record-breaking debut day.

Bitwise’s XRP was also impressive on its first day, but the token plummeted again, albeit in line with the rest of the cryptocurrency market.

That’s why many are speculating whether today’s expected launch of 21Shares’ spot XRP ETF, which will track the CME CF XRP-Dollar Reference Rate, is another classic sell-the-news event.

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They must try to ruin every XRP ETF launch day 🤣🤣 pic.twitter.com/1QGcpe2Mcw

— Cobb (@Cobb_XRPL) December 1, 2025

The four XRP ETFs already available for trading have attracted total net inflows of more than $660 million since their initial launch a few weeks ago. XRPC remains the largest of the bunch, with over $340 million in cumulative net flows, followed by Bitwise’s XRP, Franklin’s XRPZ, and Grayscale’s GXRP.

The drop to $2.04 at the time of writing means XRP is further in the red on the YTD scale, after entering 2025 at $2.32. This kind of performance is in stark contrast to the year the company behind the token had, which may be the best ever.