Source: Huali Huawai
In the past few days, we have witnessed some history once again.
On March 3 at 9:30 AM (Eastern Time), the S&P 500 index opened up about 30 points, and TOTAL (total crypto market capitalization) also hit a peak during the trading session. However, by 2:30 PM, the market capitalization of the S&P 500 evaporated by about $1.5 trillion, and the cryptocurrency market capitalization evaporated by about $300 billion.
The market once again felt Trump's 'power'. Of course, today (March 5, Beijing time), the market is not doing much better, as it continues to bear the 'blow' from Trump, including:
Trump officially announced the imposition of a 25% tariff on Canada and Mexico. Although the market hopes that the tariff can continue to be postponed, it is clear that Trump intends to use tariffs as a political tool, leading to a market reaction of continued decline.
Meanwhile, a statement was also released regarding the cessation of arms sales to Ukraine and plans to relax sanctions against Russia.
Of course, there is also the tariff policy targeting a certain major Asian country, which will raise tariffs on that country to 20% starting now. This clearly shows that Trump is determined to continue the tariff war. During his previous term, it took two years to raise tariffs on that country to this level, but this time, it only took a little over a month.
Returning to the crypto market. Let's take a look at the liquidation data; in just the past 24 hours, over 160,000 people have been liquidated, with a total liquidation of $491 million, including $270 million in long positions and $220 million in short positions. As shown in the figure below.
Continuing to look at the flow of funds, the crypto market has experienced capital outflows for three consecutive weeks, and last week set a record for the largest single-week capital outflow in history (a total of $2.9 billion), as shown in the figure below.
In terms of capital outflow by cryptocurrency, the outflow for Bitcoin last week was $2.59 billion, Ethereum was $300 million, Solana was $7.4 million, and Ton was $22.6 million. Sui and XRP performed relatively well, with inflows of $15.5 million and $5 million, respectively. In terms of capital outflow by region, the US had a significant outflow of $2.87 billion, Switzerland had $73 million, and Canada had $169 million. In contrast, Germany saw an inflow of $5.53 million (perhaps German investors saw last week's volatility as an opportunity to buy). As shown in the figure below.
At the end of the article, let's continue to look at what interesting or noteworthy events have happened in the past few days:
- Binance will delist some stablecoins like USDT.
To comply with MiCA regulations, Binance will delist stablecoins that do not meet MiCA standards for EEA (European Economic Area) users on March 31, including 9 stablecoins such as USDT, TUSD, and DAI.
We have already introduced and explained the MiCA bill in several articles last year, such as the article on December 27, 2024. Interested partners can review the historical articles, as shown in the figure below.
- Is SEC regulation continuing to loosen?
On March 4, Yuga Labs announced that after more than three years, the SEC has officially concluded its investigation into them (the SEC filed a lawsuit against Yuga Labs for violating securities laws in October 2022), which is a significant victory for NFTs, affirming that NFTs are not securities. As shown in the figure below.
In the past two weeks, the SEC has frequently dropped investigations into several crypto projects, such as withdrawing investigations into Robinhood, Gemini, UniSwap Labs, MetaMask, and OpenSea, and reaching settlements with Coinbase and Kraken. Can we understand this as the SEC slowly paving the way for looser regulations in the crypto sector?
However, there is also an interesting point: the SEC has not given up its lawsuit against Ripple; they are still seeking to resolve allegations against TRON founder Justin Sun. Given Justin's recent connections with WLFI (a project supported by the Trump family) and some behind-the-scenes efforts he made to get closer to Trump, this becomes quite intriguing.
Here are a few other news items summarized:
- The US Senate will vote this week to repeal the cryptocurrency tax regulations from the Biden era.
- The US has established a new core cryptocurrency group to support cryptocurrency innovation in the country.
- Nasdaq submitted an application to the SEC for the listing and trading of the Grayscale Hedera ETF (an ETF product targeting altcoins).
- Aave deployed a lending market on Sonic, and Aave DAO recently proposed a purchase and distribution plan for AAVE, distributing $1 million weekly from excess income. These may also be one of the reasons for AAVE's rise today (March 5).
- It seems that many projects will undergo TGE (understood as token issuance) starting this month (March), such as Nillion, Tabi, Corn, 0G, StakeStone, Mezo, Elixir, Blackwing, Redbrick, Kelpdao, Nubit, Milkyway, Karak, Blum, Resolv, Wizzwood, MINT, GUNZ, etc. We mentioned in previous articles that many projects are eager to issue tokens this year. Are they seeing new market opportunities, or is it that they feel they need to issue tokens quickly before they miss the opportunity?
Note: The original article was 3,500 words long; here it has been condensed to 1,500 words, and the complete original has been backed up in Huali Huawai's Notion.
