Breaking News: Major Developments Shake the Crypto Market Today!

Need to know what happened in crypto today? Here is the latest news on daily trends and events impacting Bitcoin price, blockchain, DeFi, NFTs, Web3, and crypto regulation. Today in crypto, more than $1 billion worth of derivatives were liquidated on March 4 due to fears of a trade war. Meanwhile, the International Monetary Fund (IMF) has issued new requests to restrict El Salvador’s Bitcoin purchases, and the US Securities and Exchange Commission dropped its investigation on Yuga Labs.

Market Liquidations and Volatility

More than 87% of liquidations came from long positions after a volatile start to March that saw double-digit losses on March 4 erase similarly large gains from only days earlier. The turmoil was exacerbated by US President Donald Trump’s imposition of 25% tariffs against Canada and Mexico, the United States’ largest trading partners, which sent the S&P 500 stock index down nearly 2% in morning trading.

Bitcoin Price Fluctuations

Bitcoin, after touching highs of around $93,000 on March 3, faced a significant downturn. According to data from Google Finance, cryptocurrencies such as Ether and Solana fell even further, dropping by around 12% and 20%, respectively. This drawdown was a bait-and-switch for traders who had turned optimistic after Trump hinted at plans on March 2 to create a US crypto reserve holding tokens ranging from BTC and ETH to XRP and Cardano.

IMF’s New Requests for El Salvador

On March 3, the IMF filed a new request for an extended arrangement under its fund facility to El Salvador, submitting several new documents, including a staff statement update and a statement by its executive director for El Salvador. Additionally, the memorandum requested the restriction of public sector issuance of “any type of debt or tokenized instrument that is indexed to or denominated in Bitcoin and implies a liability to the public sector.” This move raises concerns about the future of Bitcoin in El Salvador, which has been a pioneer in adopting cryptocurrency as legal tender.

Yuga Labs Investigation Closed

In a significant development, Yuga Labs, the company known for creating high-priced non-fungible tokens (NFTs), announced on March 3 that the SEC has officially closed its investigation into the company. “After 3+ years, the SEC has officially closed its investigation into Yuga Labs,” the company stated in a March 3 X post. “This is a huge win for NFTs and all creators pushing our ecosystem forward. NFTs are not securities.” This announcement comes after Bloomberg reported in October 2022 that the SEC, under former Chair Gary Gensler, was determining if certain NFTs functioned more like stocks and could be considered securities.

Shifting Regulatory Landscape

The SEC has been reeling back its actions in the crypto space under the Trump administration. Late last month, NFT marketplace OpenSea revealed that the agency had initiated an investigation into the platform, which came just hours after the SEC dropped its lawsuit against crypto exchange Coinbase. This shift in regulatory focus indicates a potentially more favorable environment for crypto businesses moving forward.

As the crypto market continues to evolve, traders and investors must stay informed about these developments. The recent volatility highlights the importance of understanding market dynamics and regulatory changes that can impact investments. For more detailed insights, you can read the original article here.