Grayscale Sells $1.15 Million XRP as Binance Cuts 20 Pairs in Market Downturn

TLDR

Table of Contents

Grayscale sold over $1.15 million worth of XRP during a major market downturn.
Charles Hoskinson admits to losing $3 billion as ADA nears an 80% drop.
Binance delists 20 pairs after a massive $2.6 billion liquidation event.
Bitcoin remains volatile, struggling to maintain support at $60,000 amidst market losses.

On February 6, 2026, the cryptocurrency market experienced a sharp downturn, with $2.6 billion worth of liquidations in derivatives. This marked one of the biggest sell-offs in recent history. Bitcoin, which had once seen a high of over $120,000, is now down by 48%, hovering in the $60,000 range. Many altcoins, including XRP and Cardano (ADA), have been hit hard, signaling the beginning of a long crypto winter.

The sell-off has left many investors uncertain about the future of their holdings. Despite the market’s volatility, some industry leaders, such as Charles Hoskinson, have remained optimistic, although the market’s reality paints a more grim picture for many.

Grayscale’s XRP Sell-Off

Grayscale, one of the largest holders of XRP, has been under scrutiny after selling off 974,110 XRP, worth approximately $1.15 million, on February 5. This sell-off occurred as the price of XRP dropped 26% in a single day. The ETF data revealed that Grayscale was the main seller, which contradicts earlier rumors that Ripple insiders were responsible for the large-scale sell-off.

Other XRP ETFs saw net inflows, but Grayscale’s move has raised concerns. The lack of confidence in XRP could have significant long-term effects. Despite this, XRP still maintains positive net inflows, with other ETFs like Franklin’s XRPZ and Canary’s XRPC reporting substantial daily net inflows. However, if Grayscale continues its sell-off, it could trigger further losses for the cryptocurrency.

Charles Hoskinson’s $3 Billion Loss

Cardano’s founder, Charles Hoskinson, made a public statement admitting to losing over $3 billion in personal crypto holdings. This loss is unrealized, meaning Hoskinson has not cashed out his holdings. In his remarks, he noted, “It’d have been real easy to cash out… Do you think I honestly care if I lose it all?”

Red Days https://t.co/lO21fGjc0w
— Charles Hoskinson (@IOHK_Charles) February 5, 2026

While this display of stoicism may have inspired some of his followers, the ADA market continues to struggle. ADA has dropped more than 75% from its peak in 2025 and is now looking at an 80% potential decrease, with analysts suggesting that ADA could fall to as low as $0.053.

3 support levels for Cardano $ADA:
• $0.249
• $0.115
• $0.053 pic.twitter.com/K7MrZQp5YC
— Ali Charts (@alicharts) February 6, 2026

Despite the ongoing development efforts behind Cardano, many investors are exiting the project, unsure of its future prospects in such a challenging market environment.

Binance Reacts to Market Crisis

In the wake of the $2.6 billion liquidation, Binance, the world’s largest crypto exchange, has delisted 20 pairs due to poor liquidity and excessive risk. Among the pairs affected are AUDIO/BTC, BB/FDUSD, and SUSHI/BTC. These assets were hit hard during the liquidation process, with some seeing price drops of 30-70%.

The delisting is a response to the rapid price declines and the need to manage volatility. Binance’s decision to remove these pairs from the market aims to reduce exposure to risk and stabilize the exchange’s offerings. The move suggests that more adjustments may be necessary to navigate the ongoing downturn in the crypto space.

Market Outlook for XRP, ADA, and Bitcoin

As the crypto market enters February, many assets are at a critical juncture. XRP, which had already been under pressure, now faces additional selling from Grayscale. ADA is continuing its downward trend, with many investors wondering if it will reach its capitulation zones. Bitcoin, while showing signs of recovery, is still struggling to regain the ground it lost since its peak in late 2025.

Market sentiment remains fragile, and investors are advised to approach with caution. The full extent of the market’s response to this ongoing crisis remains to be seen, but the risk of further losses is high, and major moves like Binance’s delisting may indicate more difficult times ahead.