ZKsync and Dash Lead Crypto Gains as Fed Rate Cut and EU Oversight Shape Market

I. Crypto Market Overview

Key Takeaways

Macro Environment

The Federal Reserve's first rate cut of the year to 3.75%-4.00% signals a more accommodative stance, potentially supporting crypto liquidity. EU plans to expand ESMA's oversight of major crypto exchanges, raising compliance costs and scrutiny. Rapid stablecoin growth and regulatory warnings highlight systemic risks, increasing volatility and counterparty risk in DeFi markets.

Crypto Market

The crypto market saw mixed performance in the past 12 hours, with Bitcoin and Ethereum both experiencing declines amid weak sentiment and ETF outflows. BTC dropped 4.04% to $110,444, while ETH fell 4.76% to $3,864, pressured by risk-off flows. Altcoins were volatile; ZKsync surged 95.34% on Layer-2 hype, DASH jumped 35.49% as privacy tokens gained, and Internet Computer rose 15.76% on Web3 interest. Gains were driven by sector rotation and renewed institutional focus on scaling and privacy.

Today's Outlook

Key events today include the RBA's monetary policy decision, which may influence global risk sentiment and crypto flows. The Finternet 2025 Asia Digital Finance Summit in Hong Kong gathers regulators and industry leaders, potentially impacting regional policy direction. The BLINK Galaxy Blockchain IDO token sale on Kommunitas Launchpad is set to attract DeFi and Web3 investor attention.

Fear and Greed Index

82.00% Annual Percentile

33 Neutral

Total Crypto Market Cap

$3.71T

0.31%

Total Market Trading Volume

$97.92B

21.23%

Altcoin Season Index

72.73%

Quarterly Percentile

32 / 100

Total Futures Market Open Interest

3.22B

0.60%

Futures

871.75B

2.18%

Perpetuals

II. Industry Updates

Macro-economic Policies

The Federal Reserve has implemented its first interest rate cut of the year, lowering the policy rate to 3.75%-4.00%. This move is expected to ease borrowing costs and could support Bitcoin and DeFi liquidity, though future rate cuts remain uncertain due to persistent inflation.

U.S. Treasury Secretary Bessent has advocated for continued Fed rate cuts if inflation trends downward, signaling a dovish monetary policy stance. This could boost risk appetite and drive capital inflows into crypto assets such as BTC and ETH.

A Nobel laureate economist has warned that stablecoins, despite recent legal recognition, pose systemic risks due to reserve opacity and potential for bank runs. This increases volatility and counterparty risk in DeFi and stablecoin trading pairs.

Experts highlight that the rapid expansion of stablecoins may threaten financial stability, calling for public sector-led digital payment systems. This could impact the adoption and liquidity of private stablecoins in crypto markets.

Recent U.S. inflation data shows annual CPI at 3%, prompting the Fed to cut rates twice in recent months. Lower rates may stimulate crypto market activity, but regional inflation disparities and economic uncertainty could lead to uneven capital flows across digital assets.

Cryptocurrency Regulatory Trends

A Nobel laureate has warned that stablecoins, despite new legal status under the GENIUS Act, still pose systemic risks due to reserve opacity and potential for bank runs, raising concerns about shadow banking in crypto and impacting investor confidence.

Experts highlight that the rapid expansion of stablecoins could threaten financial stability, prompting calls for public sector-led digital payment systems to ensure market integrity and innovation in the crypto sector.

The EU is set to expand the European Securities and Markets Authority's (ESMA) powers, enabling direct supervision of major stock and crypto exchanges, which may increase regulatory scrutiny and compliance costs for crypto platforms.

California's financial regulator fined Bitcoin ATM operator Coinhub $675,000 for excessive fees and mandated compliance upgrades, signaling stricter enforcement and higher operational standards for crypto ATM providers.

Trump has nominated pro-crypto lawyer Michael Selig to lead the CFTC, indicating a potential shift toward more crypto-friendly regulation in U.S. derivatives markets, which could boost institutional participation.

ZKsync (ZK): ZKsync surged 95.34% in the past 24 hours, driven by a sharp increase in trading volume to $865.99M, likely fueled by renewed interest in Layer-2 scaling and recent exchange listings.

DASH (DASH): DASH jumped 35.49% in 24 hours, with trading volume reaching $926.91M, as market participants rotated into privacy and payments-focused altcoins amid broader volatility.

Internet Computer (ICP): Internet Computer rose 15.76% in the last 24 hours, supported by $274.05M in trading volume, as investors sought exposure to decentralized computing and Web3 infrastructure projects.

Smart Money Movements

A crypto whale expanded a $379 million portfolio by opening leveraged long positions in $HYPE, and increasing holdings in Solana ($SOL), Bitcoin ($BTC), and Ethereum ($ETH), with additional open orders for $SOL and $HYPE.

A dormant whale reactivated after 10 months, spending 65 $mSOL (about $16,700) to acquire 1.12 million $GHOST tokens, following a previous stake of over 23,000 $SOL valued at $4.37 million.

Renowned trader 0xc2a3 increased long positions to 39,000 ETH ($151M), 1,070 BTC ($118M), and 569,050 SOL ($105M), and set limit orders to buy an additional 40,000 SOL ($7.36M) at $184 each.

A significant transfer of 200 million XRP, valued at approximately $500 million, was moved from an unknown wallet to Ripple, sparking speculation about buybacks, internal reallocation, or strategic partnerships.

Cathie Wood's ARKK ETF disclosed top holdings as of November 2, with Coinbase at 5.8% and Circle at 2.55%, highlighting a strategic allocation to cryptocurrency-related companies.

Events to Watch

Nov 4 (Tue)

RBA to announce monetary policy decision at 2:30 PM AEDT; U.S. Court of Appeals to hear SBF retrial motion; Finternet 2025 Asia Digital Finance Summit in Hong Kong.

Nov 4-5 (Tue-Wed)

Blink Galaxy Blockchain IDO token sale will be held on Kommunitas Launchpad, attracting DeFi and Web3 investors.

Nov 5 (Wed)

ADP employment data for October to be released at 8:15 am; Nosana and AI Builders host AI Agent Workshop in Singapore; Intuition mainnet launch; The Graph CEO unveils Amp at SmartCon.

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