10.11 AI Daily Report Global financial markets are experiencing severe turbulence, Trump's tariff threats trigger panic.

1. Headline

1. Trump's tariff threats trigger severe fluctuations in global markets.

U.S. President Trump suddenly announced an additional 100% tariff on Chinese goods exported to the U.S. in retaliation for China's decision to restrict rare earth exports, triggering a severe shock in global markets. The Dow Jones Industrial Average plummeted by 878 points that day, the S&P 500 fell by 3.1%, and the Nasdaq Composite dropped by 3.8%.

Trump's tariff threats have intensified the trade tensions between China and the U.S., with investors worried that further escalation of the trade war will severely impact the global economy. Analysts point out that the U.S. and China are the two largest economies in the world, and their trade disputes will affect global supply chains and may encourage other countries to follow suit and join the trade war. Moreover, rare earths are key materials for manufacturing electronic products and military equipment, and the competition between China and the U.S. in this area will influence the development of the technology industry.

The turbulence in the financial markets has also spread to the cryptocurrency sector. Major digital currencies like Bitcoin have plummeted significantly, with investors rushing to sell off risk assets. Analysts believe that the escalation of the trade war will further suppress the global economy, and cryptocurrencies, as an emerging alternative investment, are inevitably facing impact.

2. The Federal Reserve may start a new round of easing policy cycle.

The latest employment report released by the U.S. Department of Labor shows that non-farm employment increased by only 136,000 in September, far below expectations, intensifying market concerns about the economic growth outlook. Federal Reserve Chairman Powell then spoke, reiterating that they will "act decisively" to support economic expansion.

Analysts generally expect that, given the weak job market, sluggish inflation, and ongoing trade disputes, the Federal Reserve will initiate a new round of interest rate cuts in October and may cut rates again within the year. Some analysts even believe that if the economy slows further, the Federal Reserve might even restart quantitative easing.

The expectation of interest rate cuts puts pressure on the US dollar index, benefiting the performance of risk assets. US stocks rebounded after Powell's speech, and cryptocurrencies like Bitcoin also saw a recovery. However, market participants warn that the ongoing presence of trade disputes and geopolitical risks will limit the upside potential of risk assets.

3. The UK government advances digital currency regulation, Ripple achieves significant breakthrough

The UK government is advancing the construction of a regulatory framework for crypto assets to attract more innovative companies to conduct business in the UK. It is reported that Ripple has received approval from UK regulators, and its digital currency XRP is expected to become the first approved crypto asset for use in the payment sector in the UK.

British Chancellor of the Exchequer Philip Hammond stated that the government will create a "suitable regulatory environment" for crypto assets to ensure consumer protection while also fostering favorable conditions for innovative companies. Analysts believe that this move by the UK government will provide significant momentum for the mainstream adoption of digital currencies.

Brad Garlinghouse, the CEO of Ripple, welcomed this and revealed that Ripple has been in talks with several banks and financial institutions in the UK, planning to use XRP for cross-border payments and settlements. Cryptocurrency industry analysts point out that if XRP is indeed allowed to be used in the UK payment system, it will set a precedent for other countries to follow, thus further promoting the application of digital currencies globally.

4. Google has released a quantum computer prototype "Sycamore", triggering a quantum computing competition among tech giants.

Google announced that its 54-qubit "Sycamore" quantum computer prototype has achieved "quantum supremacy," being millions of times faster than the fastest classical computers in specific tasks. This breakthrough has sparked a new round of competition among tech giants in the field of quantum computing.

Quantum computers are considered the next generation of revolutionary computing technology, with exponential improvements in computing power and a broad range of applications in fields such as artificial intelligence, materials science, and drug design. Analysts point out that although Google's breakthrough is still in the laboratory stage, it marks a critical step towards the practical realization of quantum computers.

Tech giants like Amazon, Microsoft, and IBM are also investing heavily in the field of quantum computing. IBM claims that its latest 53-qubit system "Quantum Computation Center" has already surpassed classical computers in certain tasks. Microsoft has stated that it will launch a quantum computing cloud service for enterprises within 5 years.

The competition in quantum computing is not only reflected at the hardware level; the development of software and algorithms is equally crucial. Analysts believe that the future applications of quantum computers will profoundly impact the landscape of the tech industry. Whoever masters this revolutionary technology will gain an advantageous position in fields such as artificial intelligence and scientific computing.

5. Facebook's cryptocurrency Libra is facing severe crackdowns from regulators.

Facebook's cryptocurrency Libra, planned for launch in 2020, has faced severe crackdowns from regulatory authorities in multiple countries worldwide. France and Germany have explicitly stated their opposition to Libra's circulation in Europe, and the U.S. Congress has also raised serious concerns about it.

Libra is an "algorithmic stablecoin" based on blockchain technology and supported by a basket of sovereign currencies. Facebook claims that Libra can provide financial services to the 2.5 billion people worldwide without bank accounts, but regulators are concerned that it may affect the transmission of monetary policy and financial stability.

Analysts point out that although the Libra project claims to be decentralized, it is actually controlled by Facebook and its partners, posing significant manipulation risks. Furthermore, if Libra gains widespread use, it could challenge sovereign currencies and impact the existing financial system.

At the same time, Libra has also raised concerns about user privacy protection. Facebook has previously been involved in multiple user data leak scandals, and the public is skeptical of its sincerity in privacy protection. Regulatory authorities have demanded that Facebook must first address these issues before being allowed to launch Libra.

2. Industry News

1. The cryptocurrency market encountered a "black swan" event, and Bitcoin plummeted by 12% at one point.

On October 11, the cryptocurrency market encountered a significant "black swan" event, with Bitcoin plummeting by 12.7% in just 30 minutes, dropping to around $102,000. Ethereum saw a maximum drop of 14.3% during the same period, briefly falling below the $3,500 mark. This crash is believed to have been triggered by the chain reaction caused by Trump's sudden announcement of a 100% tariff increase on China.

Analysts say that Trump's tariff threats have intensified market concerns over an escalation of the trade war, increasing demand for safe-haven assets. Against this backdrop, cryptocurrencies, as an emerging asset class, have been the first to face a sell-off. Data shows that in just 24 hours, the total liquidation amount across the network reached $19.3 billion, with long positions accounting for more than 80%.

Investor sentiment shifted from greed to panic in a very short period, with the Crypto Fear and Greed Index dropping sharply from 64 to 27 in one day, entering the "panic" zone. Analysts warn that this event may signal the arrival of a market top, and a deeper pullback may occur in the future. They advise investors to strictly implement risk management, control position sizes, and activate stop-loss orders in a timely manner.

2. Mainstream exchanges frequently experience technical failures, Hyperliquid's "zero downtime" passes stress tests.

During this extreme market situation, many mainstream centralized exchanges experienced technical failures such as downtime and order book delays. In stark contrast, the blockchain network of the decentralized exchange Hyperliquid operated smoothly, with no delays or outages even during record traffic and trading volume peaks.

Hyperliquid officials stated that despite the platform's traffic and trading volume reaching an all-time high, the adopted HyperBFT consensus mechanism and execution layer still performed excellently, successfully passing this "stress test". This proves that Hyperliquid, as a fully decentralized and on-chain financial system, possesses robust and scalable performance.

Industry analysts point out that this incident highlights the technical shortcomings of centralized exchanges in extreme market conditions. In contrast, decentralized exchanges like Hyperliquid can provide more reliable and efficient services while ensuring fairness and impartiality. In the future, this on-chain operation model may become a development trend for crypto financial infrastructure.

3. The temporary decoupling of the stablecoin USDE has raised market concerns.

In this recent market crash, the stablecoin USDE experienced a brief decoupling phenomenon. Data shows that the price of USDE once fell to $0.6666, more than a 30% drop from its peg of $1. This has raised concerns in the market about the stability of USDE.

USDE is launched and managed by Ethena Labs, with the design goal of combining the high liquidity of stablecoins with the security of U.S. Treasury assets. Ethena's official statement later responded that the minting and redemption functions of USDE have remained operational without any downtime, and USDE continues to maintain over-collateralization.

Analysts believe that the temporary decoupling of USDE may be due to large-scale liquidations during extreme market conditions. Since Ethena holds spot and shorts contracts, USDE unexpectedly generated more additional profits, thereby increasing the over-collateralization ratio. However, this incident also reflects the risks that stablecoins may face during periods of severe volatility.

4. The exchange is taking measures and is verifying the compensation plan.

In response to the recent extreme market conditions, several exchanges have taken measures. They stated that they are conducting a comprehensive review of affected users, related liquidation details, and subsequent compensation plans. At the same time, they are also strengthening risk management mechanisms to reduce the likelihood of similar incidents occurring again.

CEO Star stated that the global risk control system has been operating stably during this market turbulence, and the platform has maintained smooth and steady operations in all regions, with all system indicators at normal levels.

In addition, some institutions and investors have expressed their willingness to provide financial support for the affected projects. A partner at DWF Labs stated that they are willing to offer various forms of support, including capital injections, investments, loans, or token buybacks, for projects impacted by the recent flash crash.

Analysts point out that timely and effective response measures are crucial for maintaining market order and rebuilding investor confidence. The efforts of exchanges and institutions may help the cryptocurrency market navigate through this turbulence and lay a foundation for future development.

5. Analysts warn of potential risks and urge investors to invest cautiously.

Despite the short-term signs of market recovery, analysts remain cautiously optimistic about the future. They warn that the scale of this drop has raised serious questions about the position of the market in the broader cycle. By digging into historical data, the most recent similar event occurred at the end of the bull market in late 2021.

Therefore, analysts are urging investors to invest cautiously and manage their risk exposure. They suggest that traders holding long positions at this stage should strictly implement risk management, ensuring that stop-loss orders are activated and position sizes are controlled. After all, this incident may signal the arrival of a market top, and deeper pullbacks could occur in the future.

At the same time, some investors believe that this sharp decline presents a good opportunity for quality crypto assets. Well-known analyst Miles Deutscher stated that he has begun to increase his investment in the strongest long-term altcoins using a dollar-cost averaging strategy, indicating that the bottom may be near.

Overall, analysts have divergent views on the future market, but all emphasize the importance of cautious investing. In extreme market conditions, investors need to remain calm, comprehensively assess risks and opportunities, and make informed investment decisions.

3. Project News

1. Monad: A high-performance Layer 1 public chain compatible with the Ethereum Virtual Machine.

Monad is a high-performance Layer 1 public chain designed to achieve tens of thousands of TPS through parallel execution technology, while being fully compatible with the Ethereum Virtual Machine (EVM). Its testnet has attracted 5.5 million users and over 100 ecosystem projects.

Latest news: Monad will launch the MON token airdrop application portal on October 14, which has sparked great attention for its high-performance EVM-compatible blockchain. Although the platform's pre-market price of $0.117 indicates high market expectations, investors should be wary of risks such as mainnet technical validation, intense public chain competition, and unclear token economic details.

Market Impact: If Monad can deliver on its high-performance promises and attract a large number of DApps and users, it will pose a strong competition to the Ethereum ecosystem. This may accelerate Ethereum's transition to a Dapp-friendly public chain and drive the entire industry towards high performance and low costs.

Industry feedback: Analysts suggest adopting a staggered investment strategy to participate in this highly anticipated Layer 1 project. Despite the attractive prospects, it is essential to remain vigilant against technical risks and competitive pressures. Whether Monad can become the next "Ethereum killer" remains to be seen.

2. Coral: DeFi Pre-Listing Trading Platform Raises $5 Million in Funding

Coral is a DeFi pre-IPO trading platform that has secured $5 million in seed round funding, aimed at providing an efficient and transparent liquidity center for pre-listed assets.

Latest Update: Coral will be launched on the BNB Alpha platform on October 12, eligible users can exchange Alpha points for airdrops. This project has attracted the attention of 17,700 traders. Analysts predict an issue price of $0.10-$0.15, with a short-term target of $0.25.

Market Impact: If Coral can address the high-risk over-the-counter trading and price opacity issues faced by new projects, it will inject new vitality into the DeFi ecosystem. This is expected to attract more quality projects into the cryptocurrency space, promoting industry innovation and development.

Industry feedback: The launch of Coral will be in fierce competition with projects like Walrus. Investors need to be wary of liquidity risks and regulatory uncertainties. However, if the project succeeds, it will bring new growth momentum to the DeFi ecosystem.

3. ChainOpera AI: The AI+We project on BSC has surged against the market trends.

ChainOpera AI is an AI+We project based on BSC, and its token COAI has surged 50 times since its launch on September 26, attracting market attention despite the shadow of the $19.1 billion cryptocurrency crash in October.

Latest update: The COAI token has surged from below $0.15 to a high of nearly $9.80, despite the overall market being in a bloody massacre. This mysterious momentum highlights the market's enthusiasm for AI+We applications.

Market impact: If ChainOpera AI can continue to develop and launch truly valuable products, it will explore new paths for the integration of AI and blockchain technology. This may trigger a surge of more innovative projects, pushing AI+We to become the next hot track.

Industry feedback: Analysts are cautious about the sustainability of COAI's surge. Some believe it may be driven by speculation, lacking real use case support. However, others are optimistic about the long-term prospects of AI + We, seeing this as just the beginning.

4. Aster: Completed the repurchase of 100 million ASTER tokens.

Aster is a perpetual contract, and its token ASTER has recently completed the repurchase of 100 million tokens.

Latest updates: Aster announced on platform X that it has completed the buyback of 100 million ASTER tokens, all purchased tokens are stored on-chain. Previously, Aster also stated that it received community feedback regarding potential discrepancies in the S2 airdrop, has refunded all transaction fees in full, and paid KOL rebates, and is currently investigating the situation.

Market impact: Aster's large-scale token buyback demonstrates its confidence in the long-term development of the project, which is expected to boost the price of ASTER tokens and investor confidence. At the same time, it sends a positive signal that Aster values community feedback and is willing to take action.

Industry feedback: Some investors appreciate Aster's integrity, believing it reflects the project's responsibility. However, some question whether the buyback motive is to manipulate the market. Overall, Aster's move has received some positive evaluations.

5. Sui: Move language public chain triggers the overflow of the Solana ecosystem

Sui is an emerging public chain based on the Move language, and its correlation with the Rust language has attracted attention and spillover effects from the Solana ecosystem.

Latest news: During the TOKEN 2049 conference, Sui's token SUI surged dramatically, sparking market discussions. Some Solana ecosystem projects, such as solend, have launched new products on Sui. Analysts believe that Sui could become the next popular destination for the overflow of the Solana ecosystem.

Market impact: If Sui can continue to develop and attract more Solana ecosystem projects to join, it will further promote the prosperity of the Move language ecosystem. This may intensify the competition between Solana and other public chains, leading to ecological restructuring.

Industry feedback: Some investors hold an optimistic attitude towards Sui, believing its technological advantages are likely to be recognized. However, there are also concerns about its lack of support from killer applications. Overall, Sui is seen as a strong competitor in the Move language ecosystem.

6. Aptos: The Move language public chain has attracted industry attention.

Aptos is another emerging public chain based on the Move language, and its mainnet launch has attracted widespread attention in the industry.

Latest update: The Aptos mainnet has been launched, and the token APTOS surged 14% during TOKEN 2049. However, the community has concerns about the development direction of its foundation.

Market Impact: If Aptos can attract a large number of high-quality projects to join, it will further promote the development of the Move language ecosystem. This may intensify competition with public chains like Sui, leading to an ecological reorganization.

Industry feedback: Investors affirm Aptos's technical strength but have doubts about its development roadmap. Overall, Aptos is seen as a strong competitor in the Move language ecosystem, and its future development is worth continued attention.

7. Movement: The last member of the Move language ecosystem

Movement is the last public chain project in the Move language ecosystem that has not yet issued a token, and its development prospects are receiving significant attention.

Latest Update: Compared to Sui and Aptos, the Movement project is relatively lagging behind in progress and has not yet issued tokens on the mainnet. However, as a part of the Move language ecosystem, it still receives significant attention from the market.

Market impact: If Movement can launch attractive products and attract a large number of users to join, it will further promote the development of the Move language ecosystem. This may intensify competition with other public chains.

Industry feedback: Investors have low expectations for Movement, believing it lags behind Sui and Aptos. However, some believe that Movement, as a complement to the Move language ecosystem, still has room for development in the future.

8. Token2049: Industry temperature difference intensifies, the strong get stronger

At the Token2049 conference in Singapore, the temperature difference within the industry has further intensified, with the strong performing with more confidence, while the weak appear even more confused.

Latest updates: Solana, Base, TON, BTCFi and other ecosystems are performing strongly, with entrepreneurs full of confidence. In contrast, other ecosystems such as the whole-chain gaming, NFT, and We social are frequently facing setbacks, leading to low morale among practitioners.

Market Impact: The strong gain development momentum through continuous innovation, while the weak face the risk of being eliminated by the market. This may exacerbate the Matthew effect within the industry, with funds and talent concentrating towards leading projects.

Industry feedback: Some investors believe that the failures of the weak stem from a lack of real use cases and an excessive pursuit of hype. In contrast, the strong focus on product development and have gained market recognition. The increasing differentiation in the industry is seen as a necessary process of sifting through the sands.

9. Industry Call: Support Long-term Entrepreneurs and Reflect on Business Models

At the Token2049 conference, there were calls for the industry to provide more support for long-term entrepreneurs and to reflect on existing business models and customer acquisition methods.

Latest news: Some well-known investors point out that the industry is currently overly focused on short-term gains, lacking attention to real users and revenue. They call for more successful individuals to give back to the industry and support the construction of public goods.

Market impact: If the industry can emphasize long-termism and real use cases, it will help cultivate more viable projects. This may slow down the trend of excessive speculation in the industry and promote healthy development.

Industry feedback: Some entrepreneurs resonate with this, believing that existing business models such as airdrop customer acquisition and immediate sell-off are no longer viable. However, there are others who believe that short-term profits will still dominate the market. Overall, this call has received some support.

10. Analyst: This crash may be a "cycle termination event"

On October 11, the cryptocurrency market experienced a severe crash, prompting analysts to warn that this could be a "cycle-ending event."

Latest updates: Major cryptocurrencies like Bitcoin and Ethereum have shown strong resilience during this recent plunge, but altcoins have been severely impacted, with many projects possibly facing difficulties in recovery. Analysts believe this marks the end of a cycle.

Market Impact: If this plunge indeed triggers the end of the cycle, it will have far-reaching effects on the entire cryptocurrency market. Some weaker projects will be eliminated, and funds may flow back to leading projects.

4. Economic Dynamics

1. The Federal Reserve releases hawkish signals, inflation expectations remain high.

Economic Background: The U.S. economy maintained moderate growth in the third quarter of 2025, with an annualized quarterly GDP rate of 2.1%, slightly lower than the previous quarter's 2.4%. The inflation rate edged down to 6.2% in September, but it remains well above the Federal Reserve's target level of 2%. The job market remains strong, with the unemployment rate holding at a low of 3.5%.

Important events: Federal Reserve Chairman Jerome Powell reiterated in his latest speech that interest rates will continue to rise until inflation shows a significant slowdown. He warned that if inflation remains high, the Federal Reserve may have to take more aggressive action. This hawkish statement has intensified market expectations that the Federal Reserve will significantly raise interest rates again within the year.

Market reaction: Powell's speech immediately triggered severe fluctuations in the financial markets. The three major U.S. stock indices plummeted that day, with the Dow dropping over 500 points. The dollar index surged, breaking through the 112 mark. Bond yields skyrocketed, with the 10-year Treasury yield approaching 4.2%. Investors generally expect the Federal Reserve to raise interest rates by 75 basis points in November and push the federal funds rate above 5% by early 2025.

Expert Opinion: Goldman Sachs chief economist Jan Hatzius stated: "The Federal Reserve is paying a heavy price to curb inflation, but if it eases up now, it will pay an even greater price." She predicts that the U.S. economy will enter a mild recession in 2026.

Harvard University economics professor Rajeev Kumar holds a different view: "The Federal Reserve should slow the pace of interest rate hikes, as inflationary pressures are easing. Excessive tightening policies may lead to a significant decline in employment."

2. The China-US trade war escalates again, and the global supply chain may be impacted.

Economic background: Since 2025, the pace of global economic recovery has slowed, and major economies are facing the dual challenges of high inflation and weak growth. The tense relationship between the two major economies, China and the United States, has exacerbated the uncertainty in the global supply chain.

Important Event: US President Trump suddenly announced that starting from November 1, a 100% tariff will be imposed on all goods imported from China as a retaliation against China's decision to limit rare earth exports. This is the harshest tariff measure in the escalation of the China-US trade war to date. The Chinese side has stated that it will take "resolute countermeasures".

Market Reaction: Trump's tariff threats have triggered severe turbulence in the financial markets. The three major U.S. stock indices plummeted that day, with the Dow Jones falling nearly 2% and the Nasdaq crashing over 3.5%. Safe-haven currencies like the U.S. dollar and the Japanese yen surged, while the RMB exchange rate against the U.S. dollar dropped below the 7.2 mark. Commodity futures broadly declined, with international oil prices plummeting more than 4%.

Expert Opinion: Former Federal Reserve Chairman Ben Bernanke warned that a full-scale trade war between China and the U.S. would have catastrophic consequences for the global economy. He called for both sides to resolve their differences through dialogue.

Goldman Sachs chief economist Casterton believes that even if tariffs do not end up being as severe, the tensions between China and the US will continue to escalate, bringing long-term uncertainty to the global supply chain.

3. The Bank of England unexpectedly raised interest rates by 75 basis points, causing the pound to rebound.

Economic Background: The UK economy fell into recession in the third quarter of 2025, with GDP declining by 0.3% quarter-on-quarter. The inflation rate rose to 10.1% in September, reaching a 40-year high. The job market remains weak, with the unemployment rate staying at a high of 4.5%.

Important events: The Bank of England unexpectedly raised interest rates by 75 basis points at its rate decision meeting on the 11th, increasing the benchmark rate to 4%. This is the largest single rate hike since the financial crisis of 2008. The Bank of England stated that it will continue to take decisive action to curb rising inflation expectations.

Market Reaction: The Bank of England's unexpected interest rate hike immediately triggered significant fluctuations in the financial markets. The exchange rate of the British pound against the US dollar surged by more than 2%, returning to the 1.15 mark. The yield on 10-year UK government bonds soared by over 30 basis points, breaking through 4.5%. The London stock market fell, with the FTSE 100 index dropping by 1.6%.

Expert Opinion: James Knox, Chief UK Economist at Standard Chartered Bank, stated: "The Bank of England's unexpected rate hike reflects its concerns about inflation expectations being completely out of control." He predicts that the UK economy will fall into a prolonged recession by 2026.

Jacob de Rowe, chief European economist at Nomura Securities, holds a different view: "The decisive interest rate hikes by the Bank of England help stabilize inflation expectations, but they also increase the risk of a hard landing for the UK economy."

4. The EU has passed a new round of sanctions against Russia, potentially exacerbating the energy crisis.

Economic Background: The EU economy fell into a recession in the third quarter of 2025, with a GDP decline of 0.4%. The inflation rate climbed to 10.9% in September, reaching a new high. The job market remained stable, with the unemployment rate hovering around 6.6%.

Important Events: Leaders of the 27 EU countries reached a consensus at a summit in Brussels to implement a new round of sanctions against Russia, including a price cap on Russian oil and an expanded export control list. This marks the eighth round of sanctions imposed by the EU on Russia due to the Russia-Ukraine conflict.

Market Reaction: After the announcement of the new EU sanctions, Brent crude oil futures surged nearly 3%, surpassing $95 per barrel. European natural gas futures prices soared over 10%, reaching a new high. Eurozone government bond yields generally rose, with the yield on Germany's 10-year government bonds rising to 2.3%. European stocks fell, with the pan-European Stoxx 600 index dropping 0.7%.

Expert Opinion: David Folkerts-Landau, Chief European Economist at Deutsche Bank, stated: "The new round of sanctions will further exacerbate the energy crisis in Europe, driving up energy costs for businesses and households, and increasing inflationary pressures." He expects the Eurozone economy to fall into recession in 2026.

Robert Cuy, Chief European Economist at Crédit Agricole, holds a different view: "While the sanctions have a short-term impact, they help to curb Russia's aggressive actions and are beneficial for the sustainable development of the European economy in the long run."

5. Regulation & Policy

1. The U.S. Treasury is preparing to take "extraordinary measures" to maintain market stability.

U.S. Treasury Secretary Janet Yellen stated that due to Congress's failure to raise the debt ceiling in a timely manner, the Treasury will have to take "extraordinary measures" to keep the government running and avoid default. This move is aimed at buying more time for Congress to raise the debt ceiling.

Yellen emphasized that if Congress fails to raise the debt ceiling in a timely manner, it will have "catastrophic" consequences for the U.S. economy and global financial markets. She urged Congress to act quickly to avoid the risk of a government default.

Market participants have expressed concerns about this. The government debt ceiling issue has been a focal point for investors, as a default would undermine the "risk-free" status of U.S. Treasury bonds, triggering turmoil in global financial markets. Analysts believe that even if the Treasury adopts "extraordinary measures," it can only temporarily alleviate the problem, and Congress still needs to reach an agreement as soon as possible.

Former U.S. Treasury Secretary Summers stated that a government default would have a devastating impact on the U.S. economy and financial markets. He urged both parties in Congress to set aside their differences and raise the debt ceiling to avoid this disastrous outcome.

2. The Russian Central Bank's Policy U-Turn: Allowing Banks to Participate in the Crypto Market to a Limited Extent

The Central Bank of Russia has officially authorized certain commercial banks to enter the cryptocurrency market, but has set strict regulatory conditions, including capital restrictions, transparency requirements, and a reserve system to control systemic financial risks. This decision marks Russia's transition from its previous stance of banning cryptocurrencies to a strategy of "controlled acceptance."

Vladimir Chistyukhin, the First Deputy Chairman of the Central Bank of Russia, emphasized that this measure is a prudent choice made after consultations with the banking sector. He stated that Russia will comprehensively legislate to regulate the development of cryptocurrency in Russia by 2026.

Previously, the Central Bank of Russia firmly opposed the circulation of cryptocurrencies in Russia, believing that they posed risks of money laundering and terrorist financing. However, as cryptocurrencies have become increasingly popular in Russia, the Central Bank has had to adjust its position.

Industry insiders believe that the shift in the policy of the Central Bank of Russia reflects the increasing importance of cryptocurrency globally. Russia hopes to seize the opportunities brought by cryptocurrency through prudent regulation.

But some analysts are concerned that excessive regulation may stifle the innovative vitality of cryptocurrencies. They urge Russia to balance regulation and development when formulating laws.

3. The Federal Reserve's Blind Action - Cutting interest rates without key economic data!

The U.S. government is partially shut down due to the debt ceiling issue, which has caused key economic data such as employment and GDP to be unable to be released on schedule. However, the Federal Reserve announced a 25 basis point rate cut on October 11 without these key indicators.

This decision has sparked widespread skepticism in the market. Analysts believe that in the absence of key economic data, the Federal Reserve's decision to cut interest rates may be blind and unable to accurately assess the economic situation.

Former Federal Reserve Governor Lael Brainard pointed out that employment and GDP data are crucial for formulating monetary policy. Without this data, it is difficult for the Federal Reserve to determine whether the economy is overheating or slowing down. He questioned whether the Federal Reserve made the right decision.

On the other hand, some experts defend the Federal Reserve's decision. Former White House economic advisor Phillips stated that despite the lack of some data, the Federal Reserve can still rely on other indicators, such as the inflation rate and the consumer confidence index. He believes that timely interest rate cuts help maintain economic growth.

However, most market participants believe that the Federal Reserve's decision to cut interest rates carries risks. Investor confidence in the Federal Reserve has been shaken, which could exacerbate market volatility.