**[Small Altcoin Market Cools Down, Funds Flow Back to Bitcoin]** Matrixport analysis indicates that the recent "small altcoin season" has experienced a temporary cooling, with market funds gradually flowing back to Bitcoin. Bitcoin dominance, which previously dipped to a phase low of approximately 56.8%, has now rebounded to 59.5%, showing a slow upward trend. The increase in Bitcoin dominance during this cycle may be related to higher institutional participation and a concentration of funds in assets with greater liquidity and clearer compliance. Looking back over the past decade, holding Bitcoin has demonstrated higher consistency and success rates during most periods. Based on this, Matrixport has adjusted its tactical model over the past month, favoring increased Bitcoin allocation. As long as Bitcoin dominance continues to rise, this allocation strategy will be maintained temporarily and dynamically adjusted according to market conditions and risk control signals.

[Abraxas Capital's Two Addresses Increase Short Positions to $690 Million] Abraxas Capital's sub-address (0xb83) deposited approximately $29 million into Hyperliquid over the past three days and has been aggressively increasing short positions in BTC, ETH, and SOL since yesterday afternoon. As of publication, the nominal value of the sub-address's total positions has risen from $67.75 million on the 27th to $253 million. The main address (0x5b5) has also slightly increased its short positions. Changes in major short positions for the two addresses are as follows: - ETH: Increased from $226 million to $273 million - BTC: Increased from $124 million to $239 million The total nominal value of positions for the two addresses has risen from $480 million on the 27th to $690 million. Additionally, the sub-address closed most of its short positions last week and withdrew nearly $100 million, with part of the funds transferred to Binance's hot wallet. Currently, both addresses are fully allocated to short positions, with a total account balance of approximately $191 million. Over the past 24 hours, they ranked first in contract position accounts on Hyperliquid.

[Federal Reserve October Rate Cut Expectations Rise, Multiple Institutions Predict Another Cut in December] Multiple financial institutions unanimously predict that the Federal Reserve will cut interest rates by 25 basis points in October. Bank of America expects the Fed to make only one rate cut this year, while Citigroup, Wells Fargo, and JPMorgan Chase predict another 25 basis point rate cut in December following the October cut. Goldman Sachs states that the likelihood of a December rate cut is high and further predicts that the Federal Reserve will implement two rate cuts in 2026.

[Crypto Market Crash Puts Nearly $1 Billion sUSDe Circular Trading at Risk of Liquidation] According to a report by Sentora Research, after the crypto market crash on October 11, nearly $1 billion in DeFi leveraged positions involving Ethena-staked USDe (sUSDe) are at risk of liquidation. The market crash caused a significant drop in DeFi market interest rates, leading to a sharp decline in returns for leveraged strategies such as sUSDe circular trading. In Aave v3 Core, the borrowing rates for USDT and USDC are approximately 2.0% and 1.5% higher than the returns on sUSDe, resulting in negative yields for users leveraging stablecoin borrowing to go long on sUSDe, with circular positions beginning to incur losses. If the negative interest rate spread persists, related positions in Aave v3 Core could face liquidation risks. The report warns that the negative interest rate spread could trigger collateral sell-offs or deleveraging, further weakening market liquidity and causing a chain reaction. Traders need to closely monitor the changes in the interest rate spread between Aave's annualized borrowing yields and sUSDe returns, especially in cases where the spread remains negative. Additionally, the rising utilization rates of USDT and USDC lending pools could drive up borrowing costs, exacerbating market pressure.

[Ethereum ICO Participant Deposits 1,500 ETH to Kraken for the First Time] Onchain Lens monitoring shows that an Ethereum ICO participant (address: 0x60d...e932) has deposited 1,500 ETH to Kraken for the first time, valued at $6.02 million. This participant acquired 20,000 ETH during the ICO at a cost of $6,220, with the current total value reaching $80.3 million, representing a return on investment of 12,914x.