Morning Report | Wintermute: Bitcoin faces a test at the $82,500 mark, with AI risks and Federal Reserve policies potentially causing volatility; BlackRock applies for Bitcoin management protection ETF, offering IBIT downside protection

Compiled by: ChainCatcher

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Wintermute: Bitcoin Faces Test at $82,500, AI Risks and Federal Reserve Policies May Trigger Volatility

According to ChainCatcher, cryptocurrency market maker Wintermute updated its market report today, stating that multiple events such as the Federal Reserve's interest rate decision, the U.S. midterm elections, and third-quarter earnings reports are approaching, and the current narrow trading range of Bitcoin may soon be broken. If Bitcoin breaks above $87,000, it may confirm an upward breakout; if it effectively falls below $82,500, the price could further drop to just above $70,000.

On the macro front, the overall CPI in the U.S. rose from 3.4% in August to 3.7%, with core CPI increasing by 0.3% month-on-month, higher than the market expectation of 0.2%, intensifying concerns about energy prices transmitting to core inflation. Wintermute pointed out that the recent rise in U.S. Treasury yields reflects more of a withdrawal of funds from crowded AI growth stock trades rather than an improvement in inflation expectations.

The market currently expects the Federal Reserve to maintain interest rates at its meeting on October 28, but if hawkish signals are released, it may strengthen expectations for a rate hike in December, pushing up U.S. Treasury yields and suppressing risk assets. Internally, the cryptocurrency market is showing a trend of funds concentrating on mainstream coins. The report shows that Bitcoin's weekly decline was 1.99%, the Nasdaq index fell by 5.52%, and altcoins overall dropped by 5.69%. Funds continue to flow into BTC and ETH while withdrawing from most altcoins, with high beta and small-cap tokens under more pressure.

Wintermute believes that the current risk-reward ratio of mainstream coins is relatively more attractive, and a broad rally in altcoins may need to wait for Bitcoin to strengthen further. Wintermute also noted that the current implied volatility is relatively low, and with the Federal Reserve's decision and midterm elections approaching, the market may be underestimating the subsequent volatility risks. The Federal Reserve's decision on October 28 will be a key catalyst in the near term, and the performance of AI-related companies' earnings will also impact the market's judgment on computing power investments, financing costs, and business models.

BlackRock Applies for Bitcoin Managed Protection ETF, Offering Downside Protection for IBIT

According to ChainCatcher, the world's largest investment management firm, BlackRock, submitted an application to the SEC on Monday to launch the iShares Bitcoin Managed Protect ETF.

According to the filing, the fund aims to provide investors with upside returns from the iShares Bitcoin Trust ETF (IBIT) and similar Bitcoin exposure while seeking to offer a certain degree of downside protection. BlackRock's iShares Bitcoin Trust currently manages over $65 billion in assets, making it the largest Bitcoin ETF in its category.

BlackRock launched IBIT in January 2024 and introduced the iShares Bitcoin Premium Income ETF in June this year, which aims to provide Bitcoin exposure while generating monthly option premium income for investors.

Bloomberg Intelligence analyst James Seyffart noted on platform X that this is BlackRock's third Bitcoin ETF application, and its product line currently only covers Bitcoin and Ethereum, without venturing into other crypto assets. In recent years, other companies have launched ETFs tracking assets like XRP, SOL, and DOGE.

Sam Callahan: Bitcoin Does Not Need Rate Cuts, Dollar's Purchasing Power Shrinks by 20% in Five Years

According to ChainCatcher, Bitcoin analyst Sam Callahan stated in a video interview published by Bitcoin Magazine that Bitcoin does not need the Federal Reserve to cut rates to succeed; what truly determines its long-term value is fiscal dominance and ongoing currency depreciation, rather than the level of interest rates.

Callahan pointed out that, according to the Federal Reserve's preferred inflation metrics, the dollar has lost at least 20% of its purchasing power over the past five years. He believes that financial repression is already occurring—core PCE averages as high as 3.7%, and the U.S. bond market is experiencing the steepest pullback in history. He bluntly stated that this policy "works well, but is unfavorable to the public."

In the interview, he also discussed why the global debt frenzy makes currency depreciation the easiest way out, the role of the Bank for International Settlements, gold's "monetary protest" and central bank credibility issues, and when central banks might adopt Bitcoin. He listed gold, Bitcoin, and the dollar as the three pillars of reserve assets, believing that all roads ultimately lead to currency depreciation.

Hyperliquid Policy Center Calls for Exclusion of Airdrops from Securities Definition

According to ChainCatcher, the Hyperliquid Policy Center published a statement calling on the U.S. Securities and Exchange Commission (SEC) to exclude airdrops from the definition of securities. The center argues that the SEC's stance proposed in March 2026 should be written into the rules, stating that free airdrops do not constitute "monetary investment" and therefore do not fall under investment contracts.

The center also advocates for extending the above rule to announced airdrops, including periodic or regular distributions. Applicable prerequisites include that the network is operational, eligibility is based on usage or contribution, such as trading, validating, providing liquidity, and governance, and that airdrops are not a means of financing. The center believes that investment requires tangible and identifiable consideration, and airdrops are rewards rather than investments.

Processes such as connecting wallets, signing, paying gas fees, completing KYC/AML, or accepting terms of service should not be considered as consideration. Furthermore, this rule should be retroactively applicable to past airdrops or cover Hyperliquid's native airdrops.

Switzerland's FINMA Approves First Bitcoin ETF for Retail Investors, Issuer Not Disclosed

According to ChainCatcher, the Swiss Financial Market Supervisory Authority (FINMA) has approved the country's first Bitcoin ETF for retail investors. This product falls under "other alternative investment funds" under Swiss law and is marked as having special risks. FINMA did not disclose the issuer of the fund, but several media outlets indicated that signs suggest it may come from BIT Asset Management (formerly Matrixport Asset Management), which FINMA did not deny in response to inquiries.

Additionally, several fund providers have submitted or announced plans to submit Bitcoin ETF applications. The fund is a single-asset product, with all funds directed towards Bitcoin. To this end, FINMA needs to grant exemptions regarding its risk diversification rules, citing Bitcoin's long trading history and extremely high trading volume. Regarding asset custody, participating institutions must take measures to prevent operational and custody risks, with standards referencing FINMA's regulatory notice issued on January 12, 2026, which requires that customer crypto assets are not included in bankruptcy assets in the event of the custodian's bankruptcy.

At the same time, the sales process must comply with Fidleg's conduct rules to provide higher investor protection than directly purchasing cryptocurrencies, and the fund documents must clearly indicate the associated risks. FINMA emphasized that even investing in Bitcoin through an approved ETF carries high risks, with severe volatility potentially leading to significant depreciation of the invested principal, and required the issuer to provide clear warnings about volatility and loss risks.

The U.S. has approved Bitcoin spot ETFs starting January 2024, with BlackRock's iShares Bitcoin Trust launching on January 11, 2024, currently managing approximately $65 billion. The Swiss exchange has been able to trade Bitcoin products for years, but they have existed in ETP form and do not have fund status; this approved ETF will be the first to incorporate Bitcoin into the approved public fund framework.

Bloomberg: Daiwa Securities and Mizuho Obtain Full Licenses in Mainland China

According to ChainCatcher, Bloomberg cited sources stating that Japan's Daiwa Securities Group and Mizuho Financial Group have been notified that they can conduct wholly-owned securities business in mainland China. The relevant approvals were advanced after Vice Premier He Lifeng hosted a senior Japanese trade delegation in March this year and discussed expanding bilateral trade and cross-border investment.

A spokesperson for Mizuho Securities confirmed the news, stating that they are continuing preparations for opening, while a spokesperson for Daiwa Securities declined to comment. Daiwa Securities was approved by the China Securities Regulatory Commission in 2021 to establish a joint venture securities company with a 51% stake, and in April this year, it spent approximately $100 million to acquire the remaining equity from its Chinese partner, receiving approval last week to complete the equity change and achieve full ownership.

Mizuho Securities was approved to establish a wholly-owned securities company in October 2025, and after completing on-site inspections and operational reviews by regulatory authorities, it was issued a securities business license last week.

Sources: Bank of Japan May Raise Inflation Expectations, Maintain Interest Rates

According to ChainCatcher, four sources revealed that the Bank of Japan may raise its inflation outlook for the next fiscal year in the forecast to be released this month, as rising oil prices are exerting more persistent price pressures on the economy than expected.

Sources said that given that the Bank of Japan just raised rates last month, it is expected to maintain interest rates at the two-day policy meeting ending on October 30, unless the yen exchange rate falls significantly again, thereby pushing up import costs and overall inflation levels.

Sources indicated that the Bank of Japan may continue to emphasize the growing inflation risks in its quarterly report released after the meeting, leaving room for a potential rate hike as early as December. One source pointed out that consumer price increases may last longer than expected, although underlying inflation has not changed significantly. The other two sources expressed similar views.

Musk's Semiconductor Project Terafab Contacts About 10 Korean Companies

According to ChainCatcher, South Korean media THE ELEC reported that Elon Musk's Tesla and SpaceX are reaching out to Korean materials, components, and equipment companies for the semiconductor manufacturing project Terafab, with some companies having signed non-disclosure agreements and discussing supply categories. From October 13 to 15, relevant personnel visited about 10 Korean companies' booths at Semicon West 2026 in San Francisco to confirm products and capacities and propose follow-up discussions, with many discussions having been ongoing for months.

ENF Technology, Asflow, and G&G Intech are involved in this initial contact, covering process materials, piping parts and valves, and wastewater reuse equipment, respectively. Mico's cleaning subsidiary Komico signed a tripartite non-disclosure agreement with Tesla and SpaceX about a month ago to discuss cleaning services for the Texas R&D pilot line.

Unisem signed a non-disclosure agreement regarding environmental protection equipment such as exhaust gas treatment, while Dongjin Semichem is negotiating around the Texas diluent plant and materials like phosphoric acid. Hanmi Semiconductor is discussing thermal compression bonding equipment, and HPSP will supply one high-pressure hydrogen annealing device to the R&D line, while testing socket company ISC is exchanging samples and design information. Terafab is located in Texas and was jointly announced by Tesla, SpaceX, and xAI in March this year, with its independent legal entity and equity structure yet to be disclosed.

The goal is to reach a monthly production of 1 million wafers within 10 years, with an initial investment of $16.8 billion and the hiring of over 3,000 people. SpaceX signed a tax reduction contract with Texas earlier this month and has begun construction. The industry expects the initial facility, which will produce 100,000 wafers per month, to be completed before 2030. Initial uses include Tesla's autonomous driving and robotics chips, as well as SpaceX's satellite and space data center chips.

South Korea's Most Anticipated Data Center IPO Cools, Plummeting 28% on First Day

According to ChainCatcher, South Korean artificial intelligence service company Elice Group's stock price fell 28% on its first day of trading. The company raised 201.1 billion Korean won (approximately $150 million) in its initial public offering, with business operations including AI cloud services and AI-based educational and business software, planning to use most of the raised funds to launch portable modular data centers and related infrastructure.

Against a backdrop of high inflation pushing up borrowing costs, investors are questioning whether the massive investments in the AI sector can yield returns in the short term. Kim Hak-joon, an analyst at Seoul-based Kiwoom Securities, stated that the market is concerned that such companies may not be able to secure follow-up financing from investors.

Elice's latest stock price is 65,300 Korean won, with an issue price of 90,500 Korean won; the filing documents show that institutional orders during its IPO reached 388.84 times the available shares. Currently, investment sentiment in the industry has cooled, and several companies' IPO plans have been hindered.

U.S. CFTC Refutes CME's Lawsuit Standing: Claims It Has Not Reasonably Explained Financial Harm from Perpetual Contract Policy

According to ChainCatcher, the U.S. Commodity Futures Trading Commission (CFTC) stated in its latest court documents that CME merely claims increased competition without reasonably explaining the existence of imminent financial harm, which is insufficient to obtain standing to challenge its perpetual contract policy. The CFTC pointed out that after policy adjustments, CME's cryptocurrency futures trading volume has actually increased.

In May of this year, the CFTC approved Kalshi's first Bitcoin perpetual contract and stated it would regulate such products on a case-by-case basis. CME, on the other hand, believes that perpetual contracts, which have no expiration date, should be classified as swaps rather than futures, subject to a different regulatory framework.

Last month, the CFTC requested a federal judge to dismiss the case, and this document further elaborates on its rebuttal to CME's standing. The CFTC also noted that CME had informed investors that it had not heard customer demand for perpetual contracts, and that such products could not replace its existing futures, and should not present different statements in court and during earnings calls.

TD Cowen policy analyst Jaret Seiberg believes that CME may still have the upper hand in arguments regarding standing and the classification of products as swaps. However, he is concerned that if the perpetual contract market continues to grow during the litigation, it may become more complicated to revoke this market if CME wins.

Reuters Survey: 100 Economists Uniformly Expect Fed Rate Hike in December

According to ChainCatcher, a Reuters survey shows that all 100 economists surveyed expect the Federal Reserve to raise interest rates in December 2026, with a possible pause in action in October. Among them, 94 expect the federal funds rate to rise to 4.00%—4.25% by the end of 2026. In contrast, in the September survey, only 29 economists held this expectation out of 76 respondents.

Over 10,000 Complaints Against UK Banks' Crypto Transfer Restrictions, Lloyds and Barclays Named

According to ChainCatcher, as reported by Cointelegraph, the crypto advocacy organization Stand With Crypto stated that during a 90-day period from May to August 2026, a total of 9,803 individuals submitted 10,092 complaints to UK banks through the organization's online tool, reflecting restrictions encountered when transferring to crypto platforms. The most complaints came from Lloyds Banking Group, one of the largest banking groups in the UK, with 2,297 complaints, followed by Barclays with 1,569 and NatWest Group with 1,278.

These complaints have raised concerns about the accessibility of crypto services in the UK ahead of the launch of a new regulatory framework for digital assets in 2027. The report indicates that different UK banks have varying practices regarding crypto transfer restrictions. Barclays and HSBC UK have been listed as limiting crypto transfers to £2,500 (approximately $3,300) per transaction and £10,000 (approximately $13,300) every 30 days. Six banks, including Starling Bank, TSB, and Chase UK, have been listed as completely prohibiting crypto-related transfers.

Meanwhile, Lloyds Banking Group and Revolut have been classified as having not disclosed crypto transfer restrictions, despite also receiving customer complaints. Revolut's official support page states that transfers to "certain cryptocurrency exchanges" are not supported, and a spokesperson for Stand With Crypto indicated that this seems to be a technical issue rather than an established policy. Nick Jones, founder and CEO of Zumo, told Cointelegraph that banking restrictions are a common issue faced by crypto founders in the UK, which may undermine the country's ambition to become a global crypto hub.

He stated that the issue of limited access to banking services needs urgent resolution so that UK crypto businesses can grow and expand in a fair environment. Jones also warned that the upcoming crypto regulatory framework in the UK may not address this issue. Although businesses are preparing for mandatory approval from the Financial Conduct Authority (FCA) by October 2027, obtaining corporate bank accounts is not included in that framework. He added that without coordinated action, businesses may obtain full authorization but still be unable to open UK corporate bank accounts.

Ethereum Spot ETF Saw Total Net Outflow of $103 Million Yesterday, Continuing Four Days of Net Outflow

According to ChainCatcher, based on SoSoValue data, the Ethereum spot ETF saw a total net outflow of $103 million yesterday (Eastern Time, October 19). The Ethereum spot ETF with the highest single-day net outflow yesterday was BlackRock ETF ETHA, with a net outflow of $95.395 million, and currently, ETHA has a historical total net inflow of $12.398 billion.

Next was Fidelity ETF FETH, with a single-day net outflow of $5.9632 million, and currently, FETH has a historical total net inflow of $2.338 billion.

As of the time of publication, the total net asset value of Ethereum spot ETFs is $14.765 billion, with an ETF net asset ratio (market value compared to total Ethereum market value) of 5.04%, and the historical cumulative net inflow has reached $12.837 billion.

Bitcoin Spot ETF Saw Total Net Inflow of $527 Million Yesterday, Only BlackRock IBIT Achieved Net Inflow

According to ChainCatcher, based on SoSoValue data, the Bitcoin spot ETF saw a total net inflow of $527 million yesterday (Eastern Time, October 19). The Bitcoin spot ETF with the highest single-day net inflow yesterday was BlackRock ETF IBIT, with a net inflow of $665 million, and currently, IBIT has a historical total net inflow of $66.233 billion.

The Bitcoin spot ETF with the highest single-day net outflow yesterday was Fidelity ETF FBTC, with a net outflow of $83.6315 million, and currently, FBTC has a historical total net inflow of $10.371 billion.

As of the time of publication, the total net asset value of Bitcoin spot ETFs is $105.459 billion, with an ETF net asset ratio (market value compared to total Bitcoin market value) of 6.4%, and the historical cumulative net inflow has reached $57.405 billion.

Grayscale: Bitcoin's Realized Volatility Has Dropped to 43%, Within the Range of S&P 500 Constituents

According to ChainCatcher, cryptocurrency asset management company Grayscale stated in a post on X that Bitcoin's volatility has decreased over the past decade as the asset has matured, with contributing factors including deeper liquidity, institutional participation, and regulation. Grayscale noted that Bitcoin's realized volatility has dropped to 43% over the past year, down from 81% five years ago, and is now within the volatility range of S&P 500 constituents. The company also stated that for investors accustomed to holding highly volatile stocks, Bitcoin's price fluctuations may not be as daunting as previously assumed.

Michael Howell: Bitcoin is the Most Liquidity-Sensitive Asset Globally

According to ChainCatcher, Michael Howell, CEO of CrossBorder Capital, stated in a video interview with Bitcoin Magazine that global liquidity is the core driver of the market, and in an environment of currency depreciation, Bitcoin is rising as a top liquidity asset.

He described Bitcoin as "the most liquidity-sensitive asset on Earth" and suggested that investors allocate both gold and Bitcoin. Howell recommended building a volatility-weighted asset portfolio, with Bitcoin's proportion in the portfolio gradually increasing as its institutionalization deepens, potentially reaching a 50-50 ratio between gold and Bitcoin in the future. He also pointed out that $70,000 is a key support level for Bitcoin.

Regarding the macro environment, Howell believes that with the peak of debt maturities and the trend of fiscal monetization, governments will continue to print money on a large scale, shifting from Federal Reserve quantitative easing to Treasury quantitative easing, and the U.S. is monetizing its own debt. He also mentioned that the Federal Reserve under Kevin Warsh may avoid a significant drop in liquidity, which could become the next catalyst for Bitcoin.

Analyst: Significant Divergence Appears On-Chain for Bitcoin, Whales Turn to Hoarding but Spot Demand Remains Weak

According to ChainCatcher, on-chain data analyst XWIN cited CryptoQuant data indicating that Bitcoin's current on-chain data shows a significant divergence between whale behavior and the spot market. Although large holders have begun to accumulate again, demand in the spot market remains weak, and the market is transitioning from "seller exhaustion" to a potential bottoming phase. XWIN stated that on-chain data shows positive hoarding signals.

Holders of 1,000 to 10,000 Bitcoins have significantly reversed their 60-day net accumulation from negative 62,600 to positive 5,230, indicating that major whales are shifting from a distribution model back to accumulation. Meanwhile, USDT reserves on the Binance trading platform have surged from approximately $790 million to $1.76 billion, suggesting that potential buying power in the market is increasing.

However, the spot buying in the United States has not kept pace. The Coinbase premium index is currently around -0.1416%, with a weekly trading platform flow translating to a net inflow of 8,428 BTC. Additionally, the short-term holder spent output profit ratio (STH-SOPR) hovers around 0.9982, indicating that short-term holders are still experiencing slight losses near the breakeven point and are choosing to sell.

Analysts believe that while the underlying structure is improving, stronger spot demand is urgently needed to spark a sustainable rebound. They suggest that investors focus on three key signals in the future: the trend of the Coinbase premium index, changes in net flow on exchanges, and whether the STH-SOPR can successfully rise above the 1 mark.

Kerman Kohli: The bottleneck in computing power financing lies in credit

According to ChainCatcher, crypto researcher Kerman Kohli published "Compute Financing" on Substack on October 19, 2026, discussing financing for computing power construction. He believes one of the main bottlenecks is capital, especially credit: early expenditures mainly came from balance sheet cash, then shifted to equity financing, citing examples such as Alphabet's $85 billion financing and Meta's fundraising through shareholder dilution, with the next step being the credit market.

Kohli summarizes the current beliefs of credit providers into three points, which he believes are incompatible: AI may be a bubble; the biggest risk is counterparty risk in purchase agreements; the underlying GPUs are not valuable and depreciate like ordinary hardware. He argues that demand is closer to infinite, stating that the demand for agentic AI is growing by about 2.5 to 5 times annually, with supply expected to at most double by the end of 2030, memory is expected to sell out by 2027, and the commitment to computing power reaches trillions of dollars, mentioning Jane Street's multi-billion dollar commitment, as well as the demands from pharmaceutical companies, research, military, and cybersecurity.

Regarding efficiency, he states that if the cost of intelligence drops by 90%, the increase in usage will be even greater, with a baseline exceeding 10 times, citing Jevons' Paradox. Regarding purchases, Kohli believes that computing power is more substitutable than real estate, and if someone withdraws their commitment during high demand, others will take over. He mentions that many credit providers require contracts of 2 to 3 years and down payments of 20% to 30%, sometimes as high as 50%, locking in long-term discount contracts effectively shorts computing power for lenders.

The article also states that computing power rental prices have risen about 50% in the past 6 months and about 100% in the past year, with B300 supplies being tight. Regarding collateral, he notes that the A100 from 2020 is still operational and leased until 2029, suggesting at least about 9 years of utility; the current price of B200 is about 50% higher than when it was released two years ago, and the 6-year-old A100 is still about 25% of its value. He concludes that computing power will surpass real estate to become the largest asset class, and the scale of credit-supported computing power is just beginning.

South Korea's JB Financial Group invests 40 billion won in AI company Upstage and acquires 2% equity

According to ChainCatcher, South Korea's JB Financial Group announced through its subsidiaries Jeonbuk Bank, Gwangju Bank, and JB Woori Capital that it has invested 40 billion won (approximately 30 million USD) in AI company Upstage during its C-2 round of financing, acquiring about 2% equity.

Previously, Upstage co-founder and CTO Hwalsuk Lee revealed that the company is considering various capital market options, including an IPO, and is also contemplating launching a Pre-IPO round of financing.

Merz urges companies to embrace AI, NVIDIA invests in four German startups

According to ChainCatcher, German Chancellor Friedrich Merz stated at the Invest in Germany Summit in Berlin that Germany hopes to become a leader in integrating AI in key industries, specifically naming manufacturing, machinery, and the automotive industry. He urged small and medium-sized enterprises to utilize existing data, saying, "Please open the door to AI and let it utilize your data." He stated that this is Germany's true secret and real advantage.

NVIDIA announced at the summit that it would increase its investment in the European AI sector, planning to support four German startups: Agile Robots, Avelios Medical, Mirelo, and Reflex Aerospace. This is part of its nearly $10 billion commitment to Europe for investing in companies, universities, and research institutions, although NVIDIA did not disclose the specific amounts for these four investments.

Agile Robots develops AI robots for manufacturing, logistics, and healthcare; Avelios Medical creates hospital management software; Mirelo develops AI models for generating audio from video; and Reflex Aerospace designs and manufactures satellites. NVIDIA CEO Jensen Huang stated that AI will only enhance, not replace, Germany's capabilities in manufacturing, mathematics, and science, and described AI as a new tool for businesses.

NVIDIA is expanding its cooperation with the German federal government and the Industry 4.0 Platform, signing a joint statement of intent to promote AI models for industrial applications. On the same day, Siemens announced a new AI solution in collaboration with NVIDIA at its Erlangen plant, stating that the relevant technology could reduce engineering work in production preparation by up to 85%, and AI production planning could lower costs by up to 20%.

Google updates UAE crypto advertising policy: Licensing and certification requirements effective October 21

According to ChainCatcher, Google's advertising policy announcement states that starting October 21, 2026, advertisers targeting cryptocurrency exchange and software wallet ads in the UAE must obtain permission from one of the designated local regulatory agencies and be certified by Google. Acceptable licensing agencies include the Capital Markets Authority (CMA), Dubai Financial Services Authority (DFSA), Financial Services Regulatory Authority (FSRA), and Virtual Assets Regulatory Authority (VARA). Advertisers must also comply with other local legal requirements, and this policy applies to all accounts globally that serve the aforementioned ads in the UAE.

Bitdeer Technologies Group: AI cloud business order backlog reaches $2.9 billion, Bitcoin production in September increased by 200% year-on-year

According to ChainCatcher, Bitdeer Technologies Group submitted a 6-K form to the SEC on October 19, 2026, and released an update on production and operations for September 2026.

The company announced a new AI cloud capacity agreement in Malaysia, with the A201 facility receiving over 70% of purchase commitments, expecting over $1.7 billion in revenue over five years, and the AI cloud revenue backlog increasing to approximately $2.9 billion. Bitcoin production reached 1,355 BTC, a year-on-year increase of 200%.

The company also acquired 200 acres of land near the Rockdale plant in Texas to support AI/HPC infrastructure development and announced a 16-year lease for the Tydal data center in Norway, with a total contract value of approximately $4.7 billion.

Open-source AI programming tool OpenCode hacked, about 1.4% of users affected

According to ChainCatcher, NetEase's "DeepTech" reported that the open-source AI programming tool OpenCode officially confirmed it was hacked, affecting about 1.4% of OpenCode Console users, with some API keys for models stored on the platform potentially leaked. Several developers reported unusual charges on accounts used to call models from OpenAI, Anthropic, etc., with some reporting losses of hundreds of dollars and others claiming over $1,700. The official statement indicated that the incident was related to a large-scale distillation attack and that they are working with OpenAI, Anthropic, and Google to address it.

OpenCode was developed by the Anomaly team, with one of the main creators being Dax Raad, who previously worked on projects like SST and OpenNext. In addition to local programs, its cloud service Console can centralize API keys from vendors like OpenAI, Anthropic, and Google in a workspace and call them on behalf of users; the incident occurred on this cloud service. The notification email stated that the attacker accessed an old system that was being decommissioned without authorization, and some third-party model API keys in the Console workspaces may have been exposed.

Developer Colin Parsons reported unusual charges of about $281 on his OpenAI account and about $168 on his Anthropic account, while Preston Zeller reported a loss of about $1,700. Other users reported unusual charges of about $400 on Anthropic and account restrictions triggered by unusual usage on Google services. OpenCode has notified affected users to revoke and replace their keys and check recent call records. Lydia Hallie, a member of the Anthropic Claude Code team, stated that Anthropic is working with OpenCode and has revoked the Claude API keys believed to be affected.

OpenAI team member Tibo stated that they are collaborating with OpenCode to help affected API users restore access and refund the amounts that were unusually consumed during the attack. Dax Raad clarified that the affected service is OpenCode Console, not the locally running OpenCode, and that keys configured directly in local tools will not be sent to OpenCode servers. On October 18, he stated on social media that the attacker had been attempting to breach the system continuously for the past 48 hours, and the team is strengthening defenses.

Security agency: Aztec Connect attacker deposited 1,255.8 ETH into Tornado Cash

According to ChainCatcher, blockchain security agency Salus monitored that the Aztec Connect attacker deposited 1,255.8 ETH (approximately $3.01 million) into Tornado Cash on October 19 through 30 transactions. The batches included 12 transactions of 100 ETH, 5 transactions of 10 ETH, 5 transactions of 1 ETH, and 8 transactions of 0.1 ETH.

The attacker exploited a settlement verification vulnerability in the deprecated Aztec Connect contract on June 14, stealing approximately $2.19 million in assets, including 908.987 ETH as well as DAI, wstETH, and Yearn vault tokens.

After holding the funds for about four months, the attacker redeemed the vault tokens on October 19, exchanging the token assets for another 346.767 ETH. Currently, the balances of the six stolen ERC-20 tokens have all been cleared.

Former Google CEO Schmidt reported to hold about 1% stake in Anthropic

ChainCatcher news, according to Bloomberg citing informed sources, former Google CEO Eric Schmidt holds approximately 1% of shares in Anthropic, stemming from his investment of several tens of millions of dollars in the Series A funding, which will make him one of the biggest individual beneficiaries in Anthropic's upcoming IPO.

It is currently unclear whether he has sold any shares, and both Schmidt and Anthropic declined to comment.

According to Pitchbook data, when Schmidt first invested in 2021, Anthropic was valued at $461 million. Investors stated last week that Anthropic's reasonable valuation is between $1.8 trillion and $2 trillion, which, if calculated at the upper limit, would increase Schmidt's net worth to nearly $80 billion.

Mastercard Launches Stablecoin Security Tool to Screen Payment Fraud and Sanction Risks

ChainCatcher news, according to The Block, payment company Mastercard has launched a Stablecoin Security tool to screen for fraud and sanction risks in stablecoin payments. This tool is aimed at stablecoin payment scenarios, helping relevant institutions identify fraudulent activities and sanction compliance risks during transaction processing. Mastercard did not disclose more product parameters and launch scope in the summary of the report.

ZachXBT: Over 87% of Funds Flowing into Money Laundering Service FreedomXMR on HL Core are Related to Illegal Activities

ChainCatcher news, on-chain detective ZachXBT stated that in August 2026, a centralized money laundering service named FreedomXMR (FXMR) appeared on Hyperliquid Core (HL Core). Over 87% of its incoming funds are directly related to illegal activities.

After manual verification, among all historical inflows over $10,000 to FXMR, more than $20 million directly originated from ransomware attacks, exploits, malware, and social engineering attacks, including: DCENT wallet exploit incident (September 2026), Fetch.ai exploit incident (September 2026), Axelar exploit incident (September 2026), a certain ransomware payment (September 2026, specific source undisclosed), Gamdom exploit incident (October 2026).

The operators of this service obtained XMR liquidity from KuCoin (over 3,000 deposits), suspected of using a similar exchange model to Wagyu.

The ticker name FXMR was acquired by the operators on July 27, 2026, at an HL auction for 518.28 HYPE (approximately $28,000). Several such centralized money laundering services have previously appeared on HL Core, exploiting the chain's "permissionless" design features and its wide application for illegal money laundering activities. Relevant data tables have been shared with the Hyperliquid team.

Kazakhstan Court Issues Ban on Six Unlicensed Platforms Including Coinbase and BingX

ChainCatcher news, according to Cointelegraph, the Astana International Financial Centre Court (AIFC) in Kazakhstan has issued a ban on six unlicensed cryptocurrency platforms, prohibiting them from providing digital asset services locally and expanding access restrictions to app stores. The Astana Financial Services Authority (AFSA) stated on Tuesday that the court made this ruling after the regulatory agency sued the operators of the relevant platforms for providing digital asset services without authorization.

The order issued on September 15 named BingX, Bitcoin.com, Huobi Global (HTX), BitMart, Coinbase, LBank, and WEEX; a three-day later amendment removed LBank from the list, as its operators had blocked access for Kazakhstan users. Google and Apple, as app store operators, were also included and required to implement regional access restrictions for the remaining platforms.

AFSA stated that users of unlicensed platforms lack the protections that licensed institutions should provide, including asset protection, information disclosure, complaint handling, and dispute resolution. The National Bank of Kazakhstan is responsible for regulating digital asset service providers outside of the AIFC. AFSA CEO Evgeniya Bogdanova stated that this court ruling is the result of the agency's long-term efforts by its supervision and enforcement team, aimed at addressing the unauthorized advertising and provision of digital asset-related services by unlicensed crypto platforms in Kazakhstan.

AFSA stated that it had issued warnings to over 20 platforms in 2025, of which nine voluntarily restricted access to their applications in the country, and seven expressed intent to apply for licenses. The agency has withdrawn its claims against these nine, and the ban will be enforced against the remaining six. Cointelegraph previously reported that Kazakhstan's financial regulatory authority had blocked nearly 1,000 unregistered cryptocurrency exchanges that provided services to citizens of the country in 2023.

Bitget Plans to Acquire Licensed Exchange in Thailand to Accelerate Localization in Southeast Asia

ChainCatcher news, according to Bitget's official announcement, the platform has announced the acquisition of the digital asset exchange and brokerage GMO-Z.com Cryptonomics (Thailand) Co., Ltd., headquartered in Bangkok. This acquisition involves the total shares held by GMO Internet and its related subsidiaries.

GMO-Z.com Cryptonomics (Thailand) holds a license for digital asset exchange and brokerage business in Thailand. This acquisition will leverage its existing compliance foundation and local market experience to strengthen Bitget's localized operational capabilities in Thailand and further enhance its strategic layout in the Southeast Asian market.

Bitget CEO Gracy Chen stated that Thailand is an important digital asset market in Southeast Asia, and this acquisition will help Bitget establish a localized operational system, gradually expanding its global trading service capabilities in the Thai market while complying with local regulatory requirements.

Meme Popularity Rankings

According to data from the meme token tracking and analysis platform GMGN, as of October 21, 08:00,

The top five popular ETH tokens in the past 24 hours are: ZC, DACITY, METH, CLAUS, CLAUDIA

The top five popular Solana tokens in the past 24 hours are: Pokémon, Kimchi, Dacity, ENERGY, earth

The top five popular Base tokens in the past 24 hours are: XDP, CTR, ELSA, PROS, VVV

The top five popular BSC tokens in the past 24 hours are: BNCB, pPOLY, .ai, .ai, Heyi

What are the noteworthy articles to read in the past 24 hours?

a16z in Conversation with Circle Founder: Arc is More Than Just a Public Chain, It is the Foundation of the Machine Economy

Jeremy Allaire: Frankly, no one can give a definitive answer at this stage. The speed of technological iteration has reached its peak in human history.

But I believe that in the coming years, a large amount of intellectual work, creative work, and various economic transactions and value exchanges will be dominated by AI entities. This is the machine economy, and this infrastructure will support its implementation. At that time, the scale of economic output will far exceed the present, and the number of products and services available globally will increase by several orders of magnitude. This is the world I envision five years from now.

Chris Dixon: As Jeremy said, many future scenarios are hard to imagine, but the trend direction is clear. The vast majority of participants in the internet will likely be machines. When these machines engage in activities, they inherently need economic capabilities, which is what I refer to as the network of the machine age.

Korea's Largest IPO Plummets 32% on First Day: Even Profitable "New Cloud" Company Cannot Escape AI Data Center Winter

About 12 hours before Elice opened, Goldman Sachs' Gabriela Borges upgraded CoreWeave to a buy rating but lowered the target price from $139 to $106, clearly assuming that the company would expand with about 10% cost (1,000 basis points) in debt. The market responded with an almost immediate sell-off to this report.

The next to be tested is Firmus's partner DayOne on Batam Island, which is still seeking to raise up to $5 billion through a U.S. IPO, with the roadshow potentially starting as soon as this Wednesday—if this deal can still go ahead, it will become the next litmus test to observe whether this financing window is completely closed.

Bypassing Foundations and Governments: Musk's $10.5 Billion Stock Gift's "Disintermediation" Distribution Experiment

Conclusion. For 73 million children, what matters is not whether the stock is worth $146 or $148 on the day of announcement, but whether they can actually receive it when they turn 18, and what it will be worth then. If it lands through the "Trump account," the most direct beneficiaries will actually be newborns born between 2025 and 2028: the government has deposited $1,000 for each eligible newborn, and Musk's stock will be the first private donation asset in the account.

The true invention of this experiment is not the act of "giving stocks," but rather transferring the question of "how to distribute technological dividends" from legislative bodies and foundations to individual technology capital owners to answer.

Banking Legion Assembles: Stablecoin Market Structure Faces Structural Shock

The two may not simply be in a substitution relationship but rather in layered competition: in the fields of institutional settlement and large payments, deposit tokens gradually erode the share of stablecoins due to their credit advantages; in retail payments, DeFi, and emerging markets, stablecoins continue to maintain their first-mover advantage.

However, the boundaries are becoming blurred. When JPMorgan's JPMD and BlackRock's BUIDL are both running on Ethereum, and tokenized deposits can directly settle for tokenized funds, the wall between traditional finance and crypto finance may be thinner than everyone imagines.

JPMorgan has moved deposits onto Ethereum. This step may be closer to changing the stablecoin market structure than the issuance of any new stablecoin.

From $70 Million Financing to Shutdown, Sophon Took Only Two and a Half Years

For ZK Stack/Rollup projects like Sophon, even with endorsements from institutions like Binance Labs and OKX Ventures, it is difficult to survive the next cycle without a clear business model and sustainable revenue. Previous projects like Abstract and Blast, and in the future, more "ghost town" blockchain network ecosystems will join this list.

After all, hot narratives can only bring temporary market hype and participation for a project. In terms of a prolonged battle, it depends on whether you can stimulate trading and build an ecosystem to obtain long-term liquidity.

Rising Over 7 Times from a Low Point, How Does L1 Blockchain Pearl Price GPU Computing Power?

The GPU computing power market is a multi-hundred billion dollar market annually, yet lacks reliable pricing. Bloomberg's index attempts to track it but cannot provide accurate direction in any given week. CME plans to launch GPU futures on October 5, 2026, cash-settled against a price that major buyers clearly do not pay.

However, a proof-of-work network based on the Bitcoin codebase, just five months old, has 320,000 GPUs continuously deciding whether to mine or lease capacity on the open market, and the aggregation of these decisions is producing the closest thing to an accurate price in the GPU computing power industry’s history.

Is Fable 5.5 Coming? Reports Indicate Anthropic is Developing a New Model Focused on "Intent Inference" Capabilities

In complex task scenarios like programming and data analysis, users' initial needs are often incomplete. A model that can infer intent can autonomously break down tasks, fill in missing information, and deliver results when users only provide rough goals.

The release schedule and implementation rhythm of the new model have not yet been announced, and whether it can truly rewrite the interaction paradigm of AI assistants remains to be seen. Anthropic and OpenAI are engaged in intense competition around the next generation of large models.

Recently, Anthropic released Claude Opus 5.5, emphasizing lower operating costs, with usage costs reduced by about 40% compared to the previous generation; OpenAI subsequently released GPT-6 Sol and Luna about 90 minutes later, halving the invocation price. Both sides are also synchronously upgrading their underlying models for programming tools, pushing AI programming agents towards fully automated code generation.

Why is it Difficult for Meme Coins to Break a $50,000 Market Cap? This Market is Squeezing Retail Investors' Funds

When "creating a false sense of community" becomes an industry, retail investors cannot wait for the next PNUT.

The article starts with market changes in 2024, dissecting the illusions behind the trading volume, KOL promotions, and liquidity data of meme coins, and provides ways for ordinary investors to protect themselves.

IOSG: Papertrade's Daily Revenue is Second Only to Tether, a Casino that Returns 90% of the Rake to Losers

Papertrade's daily revenue is second only to Tether, a synthetic perpetual protocol that returns 90% of the rake to losers, achieving $1.36 trillion in transactions within nine days, with traders netting a loss of $63.2 million, and the price of the PAPER token doubling.