The Power of Trump

Source: Talking about Li and Talking about the Outside

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 the TOTAL (total cryptocurrency market cap) also reached its highest point during the trading session (phase). However, by 2:30 PM, the market cap of the S&P 500 had evaporated by about $1.5 trillion, and the cryptocurrency market cap had evaporated by about $300 billion.

The market once again felt the "power" of Trump. Of course, the market today (March 5, Beijing time) is not much better, as it continues to bear the "blow" from Trump, including:

Trump officially announced the start of a 25% tariff on Canada and Mexico. Although the market hoped that the tariffs could be postponed, it is clear that Trump still wants to use tariffs as a tool, leading to a continued market decline.

At the same time, there was also a statement about stopping the sale of weapons to Ukraine and plans to ease sanctions on Russia.

Of course, there is also the tariff policy targeting a certain major Asian country, with tariffs raised to 20% starting to take effect. This shows that Trump is determined to continue the trade war; during his previous term, it took two years to raise tariffs on this major country, while this time it took just over a month.

Back to the cryptocurrency market. Let's take a look at the liquidation data; in just the past 24 hours, over 160,000 people were liquidated, with a total liquidation amount of $491 million, including $270 million in long liquidations and $220 million in short liquidations. As shown in the figure below.

Next, let's look at the capital flow; the cryptocurrency market has seen 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, Bitcoin had an outflow of $2.59 billion last week, Ethereum $300 million, Solana $7.4 million, and Ton $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, last week saw significant outflows from the United States ($2.87 billion), Switzerland ($73 million), and Canada ($16.9 million), while 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 take a look at some other noteworthy or interesting events from the past few days:

- Binance to delist some stablecoins like USDT

To comply with MiCA regulations, Binance will delist stablecoins that do not meet MiCA standards, including USDT, TUSD, DAI, and 9 other stablecoins for EEA (European Economic Area) users on March 31.

We have already introduced and explained the MiCA legislation in several articles last year, such as the article from December 27, 2024. Interested partners can refer back to the historical articles, as shown in the figure below.

- SEC regulation continues to ease?

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 huge victory for NFTs, confirming that NFTs are not securities. As shown in the figure below.

In the past two weeks, the SEC has frequently dropped investigations into some cryptocurrency projects, such as withdrawing investigations against Robinhood, Gemini, UniSwap Labs, MetaMask, and OpenSea, and reaching settlements with Coinbase and Kraken. So, can we understand this as the SEC slowly paving the way for easing regulations in the cryptocurrency sector?

However, it is also interesting to note that the SEC has not given up on its lawsuit against Ripple; they are still seeking to resolve the allegations against TRON founder Justin Sun. Given the recent relationship between Sun and WLFI (a project supported by the Trump family), as well as some actions Sun has taken to get closer to Trump, this is quite intriguing.

Here are a few other news items briefly listed:

• The U.S. Senate will vote this week to repeal the cryptocurrency tax regulations from the Biden era.

• The U.S. has formed a new core group for cryptocurrency to help support innovation in the sector.

• Nasdaq has submitted a listing and trading application (19b-4 application) to the SEC for the Grayscale Hedera ETF (an ETF product targeting altcoins).

• Aave has deployed a lending market on Sonic, and Aave DAO has proposed a purchase and distribution plan for AAVE, which will allocate $1 million weekly from excess revenue. These may also be one of the reasons for AAVE's rise today (March 5).

• This month (March) seems to see many projects conducting TGE (Token Generation Event), such as Nillion, Tabi, Corn, 0G, StakeStone, Mezo, Elixir, Blackwing, Redbrick, Kelpdao, Nubit, Milkyway, Karak, Blum, Resolv, Wizzwood, MINT, GUNZ, etc. We have mentioned in previous articles the urgency of many projects to issue tokens today; could it be that they see some new market opportunities? Or are they worried that if they don't issue tokens soon, they will miss the chance to profit?

Note: The original article was written with 3,500 words, and here it has been condensed to 1,500 words. The complete original text has been backed up in the Talking about Li and Talking about the Outside Notion.