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Today's top news:

• The mainstream encrypted currencies are expected to experience a sell-off first before rebounding by Friday; BTC reports $82,700.
• In the past 24 hours, nearly $1 billion in long positions in cryptocurrencies were liquidated, with ETH being the most heavily impacted.
• ETF Capital outflows continue, turning into net outflows in October
• Citrini releases a basket of crypto assets, betting that AI will be listed on the blockchain; led by DRV, LIT, and ETHFI.
• Pump.fun launches Custom Pairs, allowing any Pump tokens to be paired.

📉 Uptober weakening, mainstream cryptocurrencies falling

On Thursday, Bitcoin fell below $81,000 for a while, and Ethereum approached $2,400; the top ten crypto assets all turned negative over a seven-day period. The so-called “Uptober” clearly did not start in the way the market usually expects.

The decline in more downstream assets was even greater. Zcash fell 11% in a single day, NEAR fell 16%, Pump.fun fell 11%, and Venice Token fell 10%. Dogecoin and Chainlink both recorded double-digit declines this week.

On Wednesday, spot Bitcoin funds experienced a net outflow of $484.9 million, marking the worst single-day performance since spring. Yesterday, another outflow of $244 million occurred. This led to a net outflow for October, with a monthly total of negative $400 million. Ethereum funds have also seen continuous outflows for eight consecutive trading days, with a total outflow of $640 million during this period. Although prices were still rising last week, capital inflows have almost come to a halt. A rise without new capital support is a fragile market, and a fragile market will quickly reverse that gain.

Multiple factors changed almost simultaneously. Tom Lee indicates that once Bitmine holds 5% of the Ethereum supply, they will stop buying. At the current scale, there is still about a shortage of 100,000 Ether. This means that the buying orders that have appeared every week since June 2025 will disappear. The Ethereum funding rate turned negative in the middle of the week for the first time in months, indicating that there are more traders betting on a decline than those betting on an increase. Moreover, as prices fall, they continue to increase their bets rather than closing their positions. Crude oil prices rose due to attacks on Iranian oil tankers, drawing funds away from any risky assets. There is also that Ethereum researcher reminding everyone to prepare for entering “Bunker Mode”.

However, in the past 12 hours, the mainstream cryptocurrencies have begun to rebound. Bitcoin has once again surpassed $82,000, Ethereum is approaching $2,500, and ZEC also saw a rise on that day. Moreover, the macroeconomic logic behind this crypto bull market cycle has not changed or weakened—de-dollarization of transactions continues, institutions are entering the blockchain, tokenization is accelerating, agentic, crypto, and so on. This is more like a pullback during an upward trend, rather than a collapse. It is more likely that this is a way to clear out leveraged traders and those who entered the market later in the rally before the next round of bull market begins. Furthermore, today is just one day away from October 10th, as well as the anniversary of the sharp sell-off that marked the start of the bear market a year ago. Hopefully, we can welcome a “Reverse October 10th” tomorrow…

🌎 Macroeconomics, Cryptography, and the Market

• Leading cryptocurrencies rebounded after a sell-off on Thursday, but remained weak; BTC fell 1% to $82,700; ETH fell 3% to $2,495; SOL fell 5% to $110; HYPE fell 2% to $86; ZEC remained flat at $1,230.
• The top-performing altcoins in terms of increase include KAIA (+57%), STRK (+25%), PYTH (+11%), and ATOM (+8%).
• Crude oil falls 2% to $91; gold rises 1% to $4,200
• U.S. stock index futures rebounded after a sell-off; Dow Jones futures rose by 0.1%, Nasdaq futures rose by 0.7%
• In the past 24 hours, nearly $1 billion in long positions in cryptocurrencies were liquidated, with ETH long positions being the most heavily impacted.
• Vitalik Buterin indicates that it is possible for AI to crack encryption technologies within two years, and he warns that the industry might misuse quantum-resistant tools; he believes that lattice cryptography, which is adopted by multiple projects to counter quantum computers, could very well be cracked using AI mathematical methods. He now tends to favor hash-based approaches, but he also reminds people not to panic and to remain cautious.
• A government wallet transferred $1.01 billion in Bitcoin from the assets seized in the Bitfinex hacking case to a new, unmarked address on Thursday; subsequently, there were no deposits into exchanges, and an executive order from 2025 prohibits the sale of tokens held in strategic reserves.
• A wallet that held 100 bitcoins mined in July 2010 transferred these coins for the first time in 16 years; these bitcoins were worth about $29 when they were created, and the transaction fee for this transfer of $8.3 million in assets was only $1.22.
• The largest exchange Solana, the lending platform Loopscale have merged to form a New York-based company named Formation. The goal is to provide financing for AI, energy, robotics, and defense industries; the company plans to operate a tokenized stock trading venue under the new rules set in SEC.
• Securitize has launched tokenized versions of 12 major U.S. stocks on Solana, including Apple, Nvidia, Tesla, Amazon, and Microsoft.
• Two companies associated with market maker DWF Labs have sued custody firm BitGo in London, claiming $141 million, alleging that they sold tokens that should have remained locked.

Enterprise funds and ETF

• Bitcoin ETF saw a net outflow of $244 million on Thursday; ETH ETF had a net outflow of $72 million.

Meme Coin Tracking

• Meme coin leaders generally fell; DOGE dropped by 5%, SHIB dropped by 2%, PEPE dropped by 4%, PENGU dropped by 8%, TRUMP dropped by 2%, SPX dropped by 6%, BONK dropped by 5%.
• Robinhood The leading names on the chain also generally fell, continuing the downward trend; Pons fell by 12% to $230 million; AI fell by 12% to $98 million; Cashcat fell by 7% to $113 million; Hookr rose by 35%, WTH rose by 27%, CRH rose 60 times to lead the gains.
• The main stocks that saw increases include PQC with a 1500% rise, HeeHaw with a 1800% rise, JeanPhil with a 160% rise, and Baton with a 40% rise.

💰 Tokens, Airdrops, and Protocol Tracking

• Decrypt launches Money Accounts on Solana. This is a single-balance account that can provide funds for all the functions that can be built upon it; deposits are held in USDT, and Gas is paid by the platform on behalf of the user. The same balance can be used for earnings, exchanges, prediction markets, and perpetual futures, without the need to bridge between different networks.
• Pump.fun launches Custom Pairs, allowing users to issue a new token that can be paired with any other token on the platform. This means that every time a new token is purchased, it first goes through the original token.
• Citrini Research released a basket of crypto assets, betting that AI agents would move the funds onto the blockchain; among them, Derive, Lighter, and Ether.fi each account for 10%, followed by Aave and Ethena each accounting for 9%, Solana accounts for 8%, Hyperliquid and Aerodrome each account for 7%, as well as more targets.
• In the daily on-chain protocol revenue rankings, Hyperliquid topped with $2.45 million, followed by Pump with $2.41 million and Polymarket with $472,000.

🚚 What happened to NFT?

• NFT Leading stocks show divergence in performance; Punks Drops 5%, closes at 31.3 ETH, BAYC Rises 1%, closes at 6.09 ETH, Pudgy Drops 1%, closes at 2.85 ETH
• Quotrons (+12%) and Original Blokyz (+10%) lead the gains