What Happened in Crypto Today: Key Market Events & Trends
The crypto markets were hit with high volatility today, as regulatory updates, liquidations, and macroeconomic policies drove sharp price movements across Bitcoin, Ethereum, and major altcoins. From a $1 billion derivatives wipeout to a crucial Senate vote impacting DeFi regulations, here’s what you need to know about today’s biggest crypto events.
Tether Still in Play Under MiCA? ESMA Clarifies European Stablecoin Rules
Europe’s top financial watchdog, the European Securities and Markets Authority (ESMA), clarified today that the Markets in Crypto-Assets Regulation (MiCA) does not explicitly ban custody and transfers of non-compliant stablecoins. This comes as Binance prepares to delist nine stablecoins, including Tether (USDT), for European users at the end of March.
While MiCA aims to tighten oversight of stablecoins, ESMA confirmed that crypto exchanges and service providers can still offer withdrawals and deposits of non-compliant stablecoins, easing fears of an outright ban. However, firms are still expected to limit the acquisition of such assets, reinforcing Europe’s stricter stance on stablecoin regulation.
U.S. Senate Votes to Repeal IRS DeFi Broker Rule
The U.S. Senate delivered a major win for DeFi today, voting 70-27 to repeal the IRS’ controversial DeFi broker rule. The proposed rule would have required decentralized exchanges to report user transactions to the IRS, a move that critics argued was unworkable and would stifle innovation.
The resolution now heads to the House of Representatives, and if passed, will move to President Trump’s desk for final approval. Given the administration’s pro-crypto stance, industry leaders expect the rule to be struck down, marking a significant regulatory shift in favor of decentralized finance.
$1 Billion in Crypto Liquidations as Trade War Fears Shake Markets
One of the biggest stories in crypto today was the massive liquidation event that saw over $1 billion in derivatives positions wiped out in just 24 hours. More than 87% of these liquidations were from long positions, as traders were caught off guard by sharp market declines.
- Bitcoin (BTC) dropped to $82,000, after briefly hitting $93,000 the day before.
- Ethereum (ETH) fell by 12%, trading near $2,192.
- Solana (SOL) tumbled by 20%, leading major altcoin losses.
The sell-off was fueled by escalating trade war tensions, after President Donald Trump imposed 25% tariffs on Canada and Mexico, sending broader markets, including the S&P 500, into a tailspin.
What’s Next for Crypto?
With major regulatory and macroeconomic events in play, here’s what traders should watch:
- Final decision on the DeFi broker rule in the U.S.
- Impact of stablecoin regulation on European markets post-MiCA
- How ongoing trade war fears influence Bitcoin and broader risk assets
Despite the turbulence, crypto remains firmly in the global spotlight, with institutional players closely watching how regulations and policies shape the future of digital assets. Stay tuned—volatility isn’t going anywhere.
