10.31 AI Daily Report Global financial market Fluctuation intensifies, AI and Blockchain technology accelerate integration

1. Headline

1. The Federal Reserve lowered interest rates by 25 basis points as expected, and Powell's cautious signals triggered market turbulence.

On October 30, the Federal Reserve announced at its interest rate decision meeting that it would lower the federal funds rate target range by 25 basis points to 3.75%-4%. This marks the Federal Reserve's fourth consecutive rate cut, but Powell signaled caution at the press conference, stating that a further rate cut in December is “far from a done deal,” leading to significant market fluctuations.

Powell emphasized that, despite economic data showing a moderate expansion, the inflation rate remains above the 2% target. He believes that, in the absence of key economic data, the Federal Reserve may need to act more cautiously. Powell's comments stand in stark contrast to previous market expectations for continued interest rate cuts in December.

The voting results of the resolution show that two committee members held differing opinions, one advocating for a 50 basis point rate cut, while the other opposed this rate cut. This internal disagreement has intensified market uncertainty regarding the Federal Reserve's next actions.

U.S. stocks experienced significant volatility after Powell's speech, with the S&P 500 index at one point dropping nearly 1%. The dollar index and Treasury yields also saw a noticeable increase. Analysts pointed out that Powell's cautious remarks indicate that complacency in the financial markets will weaken, volatility will increase, and two-way capital flows will become more frequent.

2. The meeting between the leaders of China and the U.S. sends positive signals, and expectations of easing the trade war boost risk assets.

U.S. President Trump met with Chinese President at the APEC Business Leaders Summit held in Gyeongju, South Korea, where both sides reached an agreement to resolve trade disputes. Trump stated that he believes the U.S. “will reach an agreement with China,” and that it will be “a mutually beneficial agreement.”

Trump revealed that the U.S. intends to lower the additional tariffs on China, as the Chinese side will help address the fentanyl issue. This signal has greatly increased the market's expectations for a de-escalation of the trade war.

After the news was announced, U.S. stock futures and Asian markets rose in response. Technology stocks performed particularly well, with NVIDIA's market value surpassing $5 trillion, and Alphabet's earnings report showing positive results, indicating that AI momentum will drive further stock market increases.

Analysts believe that the lifting of the trade war gloom will boost the global economy, benefiting the performance of risk assets. Cryptocurrencies such as Bitcoin may also benefit from a loose monetary environment. However, the specific details of the trade negotiations remain to be seen, and the market needs to maintain cautious optimism.

3. Hong Kong Securities and Futures Commission Chairman: No regulations currently govern listed companies investing in cryptocurrencies.

The chairman of the Hong Kong Securities and Futures Commission, Huang Tianyou, stated that there are currently no regulatory rules in Hong Kong governing listed companies' investments in cryptocurrencies. The commission will monitor the market situation and study whether it needs to provide relevant guidelines.

Huang Tianyou's speech responded to the market's concern regarding the recent large-scale investments by Hong Kong listed companies in cryptocurrencies. Analysts have pointed out that the lack of regulation poses potential risks for listed companies involved in cryptocurrencies, such as poor investment decisions and insufficient information disclosure.

However, there are also views that the Securities Regulatory Commission should grant listed companies certain autonomy and should not excessively restrict their investment scope. After all, cryptocurrencies have become an emerging alternative investment tool with certain investment value.

Industry insiders are calling for the Securities Regulatory Commission to quickly establish clear guidelines for listed companies investing in cryptocurrencies, to protect investors' legal rights and to create a favorable environment for the healthy development of the industry.

4. Japan promotes the digitalization of trade settlement, VelaFi enters with blockchain technology

To address the pain points of delays, hidden costs, and lack of transparency in cross-border payments for Japanese companies, Japan has established a stablecoin settlement association and partnered with the blockchain company VelaFi.

The association will unite financial institutions, exporters, and fintech service providers to build a blockchain-based standardized settlement infrastructure. VelaFi will leverage its core blockchain and stablecoin technology to provide Japanese enterprises with T+0 instant settlement, transparent foreign exchange, multi-currency virtual account management, and other integrated services.

The co-founder and CEO of VelaFi stated that this collaboration will focus on eliminating inefficiencies in cross-border payments and establishing new industry standards. Analysts believe that the application of blockchain technology is expected to improve the transparency and efficiency of trade settlements in Japan, reducing operational costs for businesses.

However, the promotion of new technologies still faces many challenges and requires the joint efforts of the government, enterprises, and technology companies. Only by forming a positive interaction can the digital upgrade of trade settlement be ultimately achieved.

5. OpenAI responds to IPO rumors: not a focus, no specific timetable at the moment.

In response to recent rumors regarding OpenAI's plan to submit an IPO application in the second half of 2026 and a 2027 IPO, an OpenAI spokesperson stated that going public is not the company's current focus, and therefore it is impossible to determine a specific date.

The spokesperson stated that OpenAI is establishing a sustainable business to advance its mission of making general artificial intelligence benefit all of humanity. The nonprofit organization initially committed $25 billion to health and disease treatment, as well as fields related to AI resilience.

OpenAI predicts that by 2026, AI systems may be able to make small new discoveries; by 2028, significant breakthroughs are expected. The company believes that science and its social benefits are the most important ways to improve the quality of life.

Analysts point out that OpenAI's development relies on substantial financial investment, and an IPO may become an important financing channel for it. However, in the current rapid development of artificial intelligence, OpenAI should focus more on technological innovation and social responsibility, rather than overly pursuing financial metrics.

2. Industry News

1. Bitcoin fell below the $110,000 mark, and market sentiment turned cautious.

The price of Bitcoin fell to $109,700 on October 31, a daily decline of 1.28%, breaching the key $110,000 position. This drop was primarily influenced by the hawkish remarks made by Federal Reserve Chairman Powell following last week's meeting, which heightened market expectations for a faster pace of interest rate hikes. Meanwhile, there was a significant outflow of funds from Bitcoin ETFs last week, reflecting a decline in risk appetite among institutional investors.

Analysts point out that Bitcoin may face further downward pressure in the short term. The cryptocurrency fear and greed index has dropped to 29 points, indicating a shift in market sentiment towards fear. However, in the long term, Bitcoin is still expected to regain upward momentum driven by an improvement in the macro environment and a recovery in institutional demand. Investors need to closely monitor interest rate trends and changes in economic data while cautiously managing risks.

2. Ethereum faces a sell-off, but the fundamentals remain strong.

The price of Ethereum fell by 5.32% to $3699 on October 31. This drop is similar to the trend of Bitcoin, primarily influenced by Powell's statements and capital outflows. Data shows that in the past 24 hours, there was a net outflow of 3821 ETH from exchanges, with the largest outflow occurring from Coinbase.

Nevertheless, Ethereum's fundamentals remain strong. Network activity has surged, with daily transaction volumes reaching 1.6 million, while gas fees remain low, which is a healthy indicator of ecosystem usage. Analysts maintain an optimistic outlook on Ethereum, believing that its position as the dominant blockchain is unlikely to be shaken in the short term. With the Fusaka upgrade approaching, Ethereum's scalability and security are expected to improve further.

3. Solana price stabilizes at 180 USD, traders focus on the potential break above 200 USD.

The price of Solana dropped 6.62% to $179.88 on October 31. Despite the adjustment, Solana still remains above the key support level of $180. Traders are closely watching whether Solana can break through the $200 mark, which would confirm a bullish head and shoulders bottom pattern.

The development of the Solana ecosystem is the main driving force behind its price. Analysts believe that Solana is attracting more attention from institutional investors and may surpass Ethereum to become the preferred blockchain. In addition, Solana's applications in the NFT and DeFi fields are also expanding. However, Solana's high centralization and recent network congestion issues remain significant challenges it faces.

4. The performance of altcoins is diverging, with some tokens favored by investors.

On October 31st, the market showed a clear divergence in the performance of altcoins. CATCH surged by 62.17%, JELLYJELLY increased by 50%, and FLM also expanded by 30% in a short period. The rise of these tokens was mainly driven by community activities and investor enthusiasm.

At the same time, the OTHERS/BTC index has entered the “stable” zone, indicating that the overall downward pressure on altcoins may be easing. Analysts believe that as market sentiment gradually improves, some altcoins with practical applications are expected to gain more attention in the next bull market. However, investors should also be cautious of the risks brought about by speculation.

5. The cryptocurrency market is highly volatile, and investor sentiment is cautious.

On October 31, the cryptocurrency market experienced significant volatility. Major cryptocurrencies generally fell, but some altcoins performed remarkably well. This differentiation reflects investors' increasingly cautious attitude towards risk assets.

Analysts point out that the current market volatility is mainly influenced by macroeconomic uncertainty and interest rate prospects. The Federal Reserve's hawkish stance has put pressure on risk assets, while the withdrawal of institutional investors has intensified downward momentum. However, in the long run, the cryptocurrency market is still expected to regain upward momentum supported by improvements in fundamentals. Investors need to remain patient and closely monitor changes in the macro environment.

Overall, the market on October 31 reflects that the cryptocurrency market is at a critical turning point. Although volatility has intensified in the short term, the long-term outlook remains promising. Investors need to stay calm, prudently manage risks, and pay attention to changes in the fundamentals to seize potential investment opportunities.

3. Project News

1. Edge&Node launches the Ampersend platform, connecting autonomous AI agent management and trading.

Edge & Node is The Graph development team, dedicated to building a decentralized data network. Their latest launched platform, Ampersend, aims to coordinate the operation and trading methods of autonomous AI agents.

Ampersend is jointly developed by Edge & Node in collaboration with Coinbase, Google, and the Ethereum Foundation's decentralized AI team. The platform integrates emerging Ethereum standards such as ERC-8004 for agent discovery and reputation tracking. Edge & Node's CEO, Rodrigo Coelho, stated that the company is preparing for a future where “digital agents dominate a significant amount of global commercial activity.” According to a report by a16z, it is predicted that by 2030, the procurement scale driven by AI agents could reach $30 trillion. Ampersend aims to provide transparency and control for this transformation.

The launch of this platform reflects the industry's expectations for the commercialization of AI agents. As AI technology continues to evolve, autonomous agents are expected to play an important role across various industries, improving efficiency and optimizing decision-making processes. Ampersend provides the infrastructure support for this process, helping to promote the large-scale application of AI agents. However, the security and controllability of agents still require further exploration, and relevant regulatory policies need to be improved.

2. Brevis collaborates with KaitoAI to introduce on-chain verification features with privacy protection for the InfoFi ecosystem.

Brevis is a company focused on zero-knowledge proof technology, while KaitoAI is a privacy computing startup. The two companies have recently reached a collaboration to introduce privacy-protecting on-chain verification features for the InfoFi ecosystem.

Specifically, users can use Brevis's zero-knowledge proof technology to anonymously verify their identity, addressing the previous issue of having to disclose wallet addresses and enhancing privacy protection. The first application is the Brevis Yapper leaderboard. In the future, both parties will also apply privacy computing technology in more scenarios, injecting new privacy protection capabilities into the InfoFi ecosystem.

Privacy protection has always been a key focus area in the blockchain industry. Although blockchain itself has the characteristics of decentralization and transparency, the openness of user identities and transaction information also brings the risk of privacy leaks. The application of privacy computing technologies such as zero-knowledge proofs helps to achieve trusted verification and auditing while protecting user privacy.

The advancement of this collaborative project reflects the emphasis the InfoFi ecosystem places on privacy protection needs. As regulatory policies continue to improve, the application of privacy computing technology in the blockchain field is expected to further expand.

3. OpenMind completes the proof of concept for distributed computing AI model deployment

OpenMind is a startup focused on robotics and embodied intelligence. They recently announced that they have successfully completed the first proof of concept for deploying distributed computing AI models for robots.

This proof of concept is based on the distributed computing power of the Pi Network and its global network composed of 350,000 nodes. OpenMind is able to deploy the facial recognition AI model used by robots on the OM1 operating system in a decentralized manner, reducing the costs and dependencies brought by traditional centralized cloud computing, while enhancing privacy protection.

OpenMind's core technologies include the hardware-agnostic OM1 operating system and the FABRIC protocol, both of which support collective learning and collaboration among robots in a decentralized ecosystem. The company stated that this proof of concept marks the implementation of embodied intelligence in decentralized scenarios, laying the foundation for future development.

Robots and embodied intelligence are regarded as important directions in the development of AI technology. The application of distributed computing power is expected to break through the bottlenecks of traditional centralized architectures, improving efficiency and privacy protection levels. However, relevant technologies are still in the early stages, and commercial applications will take time. The formulation of regulatory policies will also influence its development process.

4. The Sui ecosystem continues to gain momentum, with new projects emerging one after another.

Sui is an emerging public chain based on the Move language, founded by former Meta employees. Since the launch of its native token, the Sui ecosystem has been continuously active, with new projects emerging one after another.

Latest news indicates that the first decentralized exchange on Sui, SuiSwap, has recently launched its testnet. Additionally, well-known projects such as the gaming platform SuiPlay and the NFT marketplace Scallop have also made their appearances. Moreover, Grayscale Trust and USDC will be landing on Sui, injecting new liquidity into the ecosystem.

As one of the representative public chains of the Move language, Sui has attracted a lot of attention due to its outstanding performance and scalability. The biggest highlight of its ecosystem construction is the attraction of a large number of developers and projects from the Solana ecosystem. For example, Solend launched SuiLend on Sui, while Cetus is one of the hottest NFT projects on Solana.

However, the Sui ecosystem currently has relatively few tradable assets, and the number of star projects is limited, still needing further enrichment of the ecosystem. At the same time, other Move public chains such as Aptos and Movement are also actively making efforts, and competition in the Move ecosystem may become increasingly intense.

Overall, the development of the Sui ecosystem is promising, and the prospects for the Move language are worth looking forward to. However, achieving large-scale applications will still take time, and the clarification of regulatory policies will also affect its development process.

5. Qtum Ally launches AI agents, leading the desktop automation and productivity revolution.

Qtum Ally is the latest AI agent product launched by the Qtum Foundation, aimed at providing customizable, privacy-focused automation tools for Windows and Mac users.

Qtum Ally is positioned as an artificial intelligence agent that goes beyond basic chatbots, capable of performing various complex tasks such as file management, scheduling, content creation, etc., thereby enhancing work efficiency. This product utilizes privacy computing technology to ensure the security of user data.

Artificial intelligence agents are seen as an important way to improve productivity. Compared to traditional software, intelligent agents can better understand and execute complex instructions, providing users with personalized intelligent assistance. The launch of Qtum Ally reflects the innovative layout of blockchain companies in the field of artificial intelligence.

However, the security and controllability of artificial intelligence agents remain a key focus of the industry. Qtum Ally adopts privacy computing technology, but the maturity of the relevant technology and its reliability in practical applications still need further observation. In addition, the regulatory policies for artificial intelligence agents are also an uncertain factor.

Overall, Qtum Ally provides a beneficial exploration for the application of artificial intelligence agents in productivity scenarios. Its subsequent development and user feedback will bring important experiences and insights to the industry.