Gate Daily (October 30): Powell hints at no rate cuts in December impacting Bitcoin; Grayscale launches Solana ETF joining the race.

Bitcoin (BTC) continues its weak trend, reporting around $110,516 on October 30. The Federal Reserve (FED) announced a rate cut of 25 basis points to the range of 4.0%-4.25%. However, Chairman Powell mentioned that there may not be another rate cut in December, which triggered a fall in the crypto market. Grayscale launched a Solana ETF, joining Bitwise's SOL stake ETF competition.

Macroeconomic Events & Crypto Circle Hotspots

1. The Federal Reserve (FED) announced its second interest rate cut for 2025, lowering the interest rate by another 25 basis points to a range of 4.0% to 4.25%. However, FED Chairman Powell stated on October 29 that another rate cut in December is “far from certain.” As a result, the crypto market experienced a significant fall. His remarks dampened investor optimism regarding the FED's continued loose monetary policy to support slowing economic growth.

2. The cryptocurrency asset management company Grayscale Investments has launched a Solana spot exchange-traded fund (ETF) with staking functionality, expanding the avenues for institutional investors to participate in Solana investments. According to an announcement released on October 29, the Grayscale Solana Trust ETF began trading on the New York Stock Exchange Arca platform under the code GSOL. The product includes staking functionality, allowing investors to earn rewards through Solana's proof of stake (PoS) network.

3. Innovate NY is a political organization that claims to “support digital assets.” It has received approximately $100,000 in funding ahead of the New York City mayoral election, supporting independent candidate and former Governor Andrew Cuomo. The mayoral election is currently in the early voting phase. This political group has listed a series of campaign platforms, including “blockchain, tokenization, public stablecoins, and artificial intelligence.” The organization has registered as an independent spender with the New York City Campaign Finance Board and, as of October 29, has obtained $99,500 in funding from six individuals through two companies.

News Dynamics

1. The MegaETH public sale has currently raised 954 million USD, with an oversubscription of 19.1 times.

2. DRW is leading discussions to raise $500 million for a Canton token reserve listed company.

3. Fidelity submitted an updated version of the spot Solana ETF S-1 application document, with a fee rate set at 0.25%.

4. The listed company Solana Company revealed its increase in holdings of 20 million USD SOL coins.

5. Bitwise's Solana ETF saw trading volume exceed 70 million USD the next day.

6. Axios: MetaMask's parent company Consensys has hired JPMorgan and Goldman Sachs to lead its IPO.

7. Reuters: OpenAI is preparing for an IPO, which could value it at around $1 trillion.

8. Mastercard plans to invest up to 2 billion USD to acquire the crypto startup Zerohash.

9. TRUMP token issuer Fight Fight Fight is negotiating to acquire Republic's U.S. business.

Market Trends

1. Latest news on Bitcoin: $BTC continues the weak market trend, currently reported at around 110,516 USD, with liquidations totaling 233 million USD in the past 24 hours, primarily from long positions;

2. The US stock market, which has repeatedly reached new highs, was doused with cold water by The Federal Reserve (FED) on October 30. Chairman Powell stated that a rate cut in December is far from certain, leading to a decline in the Dow Jones Industrial Average, while the S&P 500 index closed flat. The Dow Jones Industrial Average fell by 74.37 points, a decrease of 0.2%, closing at 47,632.00 points; the S&P 500 index slightly dipped by 0.30 points, closing at 6,890.59 points; the Nasdaq Composite Index rose by 130.98 points, an increase of 0.6%, closing at 23,958.47 points. The Philadelphia Semiconductor Index surged by 1.9% to 7,329.93 points, setting a new historical high.

(Source: Gate)

3. In the Gate BTC/USDT liquidation map, based on the current 110,468.00 USDT, if it falls to around 108,940 USD, the accumulated liquidation amount for long positions exceeds 335 million USD; if it rises to around 114,129 USD, the accumulated liquidation amount for short positions exceeds 1.42 billion USD. The liquidation amount for the bears is significantly higher than that for the bulls, so it is recommended to reasonably control the leverage ratio to avoid triggering large-scale liquidations during market fluctuations.

(Source: Coinglass)

4. In the past 24 hours, BTC spot inflow was $3 billion, outflow was $3.08 billion, resulting in a net outflow of $0.08 billion.

(Source: Coinglass)

5. In the past 24 hours, contracts such as $TRUMP, $ZEC, $OL, $GIGGLE, and $EVAA have seen net outflows leading, indicating trading opportunities.

X KOL Selected Insights

Phyrex Ni (@Phyrex_Ni): “Today's assignments are more challenging. After the U.S. stock market opens tonight, the price of BTC has been on a downward trend, while the performance of the U.S. stock market itself is quite good. Even with the Federal Reserve announcing a 25 basis point rate cut and preparing to halt tapering in December, it hasn't stopped Bitcoin's decline. I checked some data and information and found nothing favorable, especially regarding U.S. historical content.”

“The second viewpoint is that the market has sufficient expectations for an interest rate cut in October, and this part of the rise has already been reflected in advance. Therefore, it is not just cryptocurrencies that have corrected, but most of the U.S. stocks have also corrected. Additionally, stopping the tapering in December will not have much stimulating effect on the market. In other words, this is more like 'Sell the News'; the market has completed its stage of predictions. Next, the estimates for a rate cut in December are the main reason for the overall decline in the market. Previously, the market was still expecting another rate cut in December, but Powell's remarks have significantly reduced this probability, especially since Powell spoke quite decisively, stating that unless unemployment data rises significantly, the possibility of continuing to cut rates in December is not large.”

“Although there are some differences within the Federal Reserve, the information mainly reflects the 'opposition' between Milan and Schmidt. From this, it can also be seen that although some Federal Reserve officials have leaned towards Trump, they are not very aggressive when it comes to actually deciding the interest rate. The only one who truly conveys Trump's message is Milan, which should also give Trump a headache.”

“Looking back at the data of Bitcoin, although the price has further declined, the turnover rate has not continued to increase, indicating that market sentiment has not deteriorated; only some short-term investors are actively participating in the turnover, while earlier investors have not reacted significantly. By the time of the closing, although the U.S. stock market has seen some adjustments, it does not affect the trend changes. The market is now more optimistic about the earnings reports of major tech stocks. If the information from the earnings reports is favorable, it could lead to a market rebound, and even BTC has the opportunity to continue rising. Currently, the support structure and stability of BTC have not shown any issues.”

Today's Outlook

1. France's third quarter GDP preliminary value (quarterly rate), previous value was 0.3%

2. Germany's seasonally adjusted unemployment rate for October (official) was 6.3% previously.

3. Germany's third quarter seasonally unadjusted GDP preliminary value (annualized), previous value was -0.2%.

4. Germany's third-quarter seasonally adjusted GDP preliminary value (quarterly rate), previous value was -0.3%

5. Eurozone September unemployment rate, previous value was 6.3%

6. Eurozone Q3 GDP preliminary value (annualized), previous value was 1.5%

7. Eurozone Q3 GDP preliminary value (quarterly rate), previous value was 0.1%

8, The preliminary value of the Personal Consumption Expenditures Price Index (annualized quarterly rate) for the third quarter in the United States, with a previous value of 2.5%.

9, The initial value of the actual GDP in the United States for the third quarter (annualized quarterly rate) was 3.8%.

10. Eurozone European Central Bank refinancing interest rate, previous value was 2.15%

11. Chinese leaders will attend the 32nd informal meeting of APEC leaders in Gyeongju, South Korea from October 30 to November 1 and conduct a state visit to South Korea.

12. South Korea will host the 2025 Asia-Pacific Economic Cooperation Leaders' Summit, until November 1.

13. Chinese leaders meet with U.S. President Trump.

14. Japanese Prime Minister Sanna Nishimura visited South Korea and attended the APEC summit, until November 1.

15. The Governor of the Bank of Japan, Kazuo Ueda, holds a monetary policy press conference.

16. The European Central Bank announces interest rate decision.

17. European Central Bank President Lagarde holds a monetary policy press conference.

18. Federal Reserve Board Governor Bowman delivered a pre-recorded speech at an online conference.

19, The Bank of Japan announced the Interest Rate decision and the economic outlook report.