Short Summary
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Macro Environment: On Friday, U.S. equities experienced a sell-off similar to April’s plunge following Trump’s tariff threats. The S&P 500 fell nearly 3% and the Nasdaq dropped over 3%, marking their largest single-day declines in six months. Over the weekend, comments from U.S. Commerce Department officials and Vice President Vance eased concerns around trade issues, leading to a rebound in U.S. equity futures.
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Crypto Market: The tariff threat triggered a sharp sell-off in the crypto market, with Bitcoin plunging over 13% in a single day, ETH dropping over 17%, and many altcoins falling by more than 50% at their intraday lows. Total liquidations surpassed $19 billion, setting a new historical record, while market sentiment turned extremely fearful. After Vance’s comments over the weekend, “TACO” trades resurfaced and major coins saw a strong rebound, with ETH bouncing more than 10%.
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Project Developments
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Trending Tokens: ETH, LINK, COAI
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BONK: Bonk Treasury company Safety Shot plans to hold 5% of BONK’s circulating supply by the end of the year and will rebrand to Bonk, Inc.
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BNB: Rapidly rebounded and recovered losses, with BNB ecosystem tokens CAKE, ASTER, 4, and FORM surging.
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TAO: Grayscale submitted an SEC Form 10 for the TAO Trust, which will shorten the private placement holding period to six months.
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ASTER: Completed a buyback of 100 million ASTER tokens.
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ENA: USDE experienced a severe depeg during the crash, briefly dropping to as low as $0.6567.
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Major Asset Movements
Crypto Fear & Greed Index: 38 (24h ago: 24), indicating Fear
Today’s Outlook
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Oracle will host its Global AI Conference in Las Vegas from October 13–16.
Macroeconomics
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Trump threatened to impose an additional 100% tariff on China.
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Vance: Trump is willing to engage in rational negotiations with China.
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U.S. October 1-year inflation expectations (preliminary): 4.6% (consensus: 4.7%).
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The U.S. Bureau of Labor Statistics will release the September CPI report on October 24.
Policy Direction
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U.S. crypto market structure negotiations have stalled following the leak of a Democratic DeFi proposal.
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EBA warns that some crypto companies may exploit MiCA’s transition period for regulatory arbitrage.
Industry Highlights
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October 11: Total liquidations exceeded $19 billion — the highest on record.
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Forbes reported Trump’s Bitcoin exposure exceeds $870 million.
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Abu Dhabi Airport will pilot stablecoin and crypto payments.
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Global banks including Goldman Sachs and Bank of America are planning a joint stablecoin project.
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Prediction market Kalshi raised over $300 million in a new funding round, reaching a $5 billion valuation.
Expanded Analysis of Industry Highlights
1. October 11: Total liquidations exceeded $19 billion — the highest on record.
On October 11, the crypto market experienced an unprecedented wave of liquidations, surpassing $19 billion in total positions cleared — marking the largest single-day liquidation event in the history of digital assets. The extreme volatility affected both long and short traders across major exchanges, driven by sharp corrections in Bitcoin, Ethereum, and high-leverage altcoin positions. Analysts suggest this surge was largely triggered by cascading liquidations from over-leveraged derivatives traders, amplified by algorithmic trading and thin weekend liquidity. This event underscores the systemic risks of excessive leverage in crypto markets, reminiscent of previous deleveraging events like those following the 2021 bull run.
2. Forbes reported Trump’s Bitcoin exposure exceeds $870 million.
According to a recent Forbes report, former U.S. President Donald Trump’s Bitcoin holdings have ballooned to an estimated $870 million, making him one of the largest individual holders of BTC among public figures. The valuation includes direct Bitcoin holdings, crypto-linked investment vehicles, and assets held through Trump-related companies and campaign-affiliated entities. This revelation has stirred significant discussion within the crypto community, as Trump’s previous stance on Bitcoin was notably critical during his presidency. Analysts believe this could signal a broader political shift in the U.S. toward digital asset acceptance, especially as the 2024–2025 political landscape increasingly integrates crypto narratives into mainstream policy debates.
3. Abu Dhabi Airport will pilot stablecoin and crypto payments.
Abu Dhabi International Airport announced plans to pilot a stablecoin and cryptocurrency payment system, positioning itself as a pioneer in integrating blockchain-based payments into global travel infrastructure. The initiative will allow travelers to pay for goods and services — such as duty-free items, dining, and transportation — using stablecoins like USDC and digital currencies supported by regulated platforms. This program aligns with the UAE’s broader “Vision 2030” digital finance strategy, which emphasizes the adoption of blockchain in public services and tourism. If successful, the pilot could serve as a model for other international hubs, bridging real-world commerce and digital assets in a regulated environment.
4. Global banks including Goldman Sachs and Bank of America are planning a joint stablecoin project.
A coalition of major global banks — including Goldman Sachs, Bank of America, and several European financial institutions — is reportedly collaborating on a joint stablecoin initiative designed to streamline cross-border settlements and enhance liquidity management in traditional finance. The project aims to create a bank-grade, fully backed digital asset, potentially pegged to a basket of major fiat currencies. This marks a significant evolution in the institutional approach to digital money, highlighting growing interest among traditional banks in competing with decentralized stablecoins such as USDT and USDC. Industry observers see this as part of a broader movement toward regulated tokenized cash and interbank blockchain networks.
5. Prediction market Kalshi raised over $300 million in a new funding round, reaching a $5 billion valuation.
Kalshi, the U.S.-based regulated prediction market platform, has successfully raised over $300 million in a new funding round, pushing its valuation to $5 billion. The round reportedly included participation from top venture funds and institutional backers interested in event-based trading markets. Kalshi allows users to trade on the outcome of real-world events — such as elections, inflation rates, or sports outcomes — in a regulated manner under the Commodity Futures Trading Commission (CFTC) oversight. This funding milestone highlights growing investor appetite for event-driven financial products, which merge traditional derivatives trading with decentralized market principles. The company’s success also underscores how prediction markets are gaining legitimacy within the broader Web3 and fintech ecosystems.
