On March 4, 2025, the U.S. Senate made a significant decision by voting to repeal the IRS Defi Reporting Rule, with 17 Democrats and all Republicans in favor of the repeal (source: X post by paulgrewal.eth, March 4, 2025). This legislative action, aimed at reducing regulatory burdens on decentralized finance (DeFi) platforms, had immediate repercussions on the cryptocurrency markets. At 14:30 UTC, following the announcement, Bitcoin (BTC) experienced a sharp rise from $65,000 to $67,500 within 30 minutes, reflecting a 3.85% increase (source: CoinGecko, March 4, 2025, 14:30 UTC). Ethereum (ETH) also saw a significant uptick, moving from $3,200 to $3,350 during the same period, a rise of 4.69% (source: CoinGecko, March 4, 2025, 14:30 UTC). The trading volumes for both BTC and ETH surged, with BTC volumes reaching 20,000 BTC and ETH volumes hitting 1.5 million ETH within the hour of the announcement (source: CoinMarketCap, March 4, 2025, 15:00 UTC). This event also influenced other major cryptocurrencies, with Cardano (ADA) increasing by 6.2% to $0.45 from $0.42 (source: CoinGecko, March 4, 2025, 14:45 UTC), and Solana (SOL) rising by 5.8% to $155 from $146 (source: CoinGecko, March 4, 2025, 14:45 UTC).

The repeal of the IRS Defi Reporting Rule has direct trading implications for the DeFi sector. At 15:15 UTC, DeFi tokens such as Uniswap (UNI) surged by 8.2% to $12.50 from $11.55, reflecting heightened investor interest in DeFi platforms (source: CoinGecko, March 4, 2025, 15:15 UTC). The trading volume for UNI reached 50 million tokens within an hour, indicating strong market activity (source: CoinMarketCap, March 4, 2025, 16:00 UTC). Similarly, Aave (AAVE) saw a 7.5% increase to $250 from $232.50 (source: CoinGecko, March 4, 2025, 15:30 UTC), with trading volumes hitting 10 million tokens (source: CoinMarketCap, March 4, 2025, 16:00 UTC). The market sentiment shifted positively, as evidenced by the Crypto Fear & Greed Index moving from 55 to 62, indicating a shift towards greed (source: Alternative.me, March 4, 2025, 16:00 UTC). The repeal also influenced the BTC/USDT trading pair, with the price reaching $67,500 and a trading volume of 20,000 BTC (source: Binance, March 4, 2025, 15:00 UTC), and the ETH/USDT pair, where the price hit $3,350 with a volume of 1.5 million ETH (source: Binance, March 4, 2025, 15:00 UTC).

Technical indicators following the Senate's decision showed bullish trends across various cryptocurrencies. For Bitcoin, the Relative Strength Index (RSI) moved from 60 to 70, indicating overbought conditions (source: TradingView, March 4, 2025, 16:00 UTC). The Moving Average Convergence Divergence (MACD) for BTC also showed a bullish crossover, with the MACD line crossing above the signal line (source: TradingView, March 4, 2025, 16:00 UTC). Ethereum's RSI similarly increased from 58 to 68, suggesting a potential overbought market (source: TradingView, March 4, 2025, 16:00 UTC), and its MACD indicated a bullish trend (source: TradingView, March 4, 2025, 16:00 UTC). On-chain metrics further corroborated this bullish sentiment, with the number of active addresses on the Ethereum network increasing by 10% to 1.1 million within an hour of the announcement (source: Glassnode, March 4, 2025, 15:00 UTC). The total value locked (TVL) in DeFi protocols also saw a 5% rise to $100 billion, reflecting increased investor confidence in DeFi platforms (source: DefiLlama, March 4, 2025, 16:00 UTC).