Affected by the decline of U.S. stocks and market sentiment, the crypto market also saw a pullback last night.

Bitcoin hit a low of $58,946 and is currently fluctuating around $60,500. Ethereum is fluctuating around $2,400.

Among altcoins, UNI performed the strongest, breaking through $8.4 and rising by more than 10% against the trend.

This may be influenced by the news that Uniswap is about to launch Unichain.

Uniswap's development team Uniswap Labs announced that they will launch their own Layer 2 network Unichain.

The network is built on Optimism’s OP Stack technology and is scheduled to go live on the testnet on October 10.

This means that the decentralized exchange, which accounts for more than 15% of Ethereum network fees, will move trade execution to Layer 2, significantly reducing transaction fees and latency.

Uniswap said that the main problem with the Ethereum mainnet is that the user experience is not friendly enough, especially the slow block speed of about 12 seconds. The block speed of public chains like Solana is only 400 milliseconds.

In addition, Ethereum's transaction fees are high, and Uniswap believes that migrating transaction execution to Layer 2 can save more than 95% of fees.

According to Unichain’s white paper, node operators need to stake UNI tokens on the Ethereum mainnet to become validators.

Unichain's PoS mechanism empowers the UNI token, which may increase the market demand for UNI tokens, thereby driving up the price of UNI tokens.

Next, let’s take a look at the data and news that are worth paying attention to:

1. US CPI is higher than expected, US stocks open lower

The U.S. Consumer Price Index (CPI) rose 2.4% year-on-year in September, slightly higher than the market expectation of 2.3%, but slightly lower than the previous 2.5%.

Affected by this news, U.S. stocks fell after opening, with the Dow Jones Index falling 60 points, the S&P 500 Index falling 0.28%, and the Nasdaq Index falling 0.5%. This is mainly because the annual rate of CPI in September was higher than expected.

The higher-than-expected inflation data, coupled with last week's strong nonfarm payrolls report, could intensify the debate over whether the Federal Reserve will choose to cut interest rates by a quarter point next month or pause.

The market now generally believes that the Federal Reserve is more likely to cut interest rates by 25 basis points next month.

Pepperstone analyst Michael Brown said that although September's inflation data was higher than expected, it would not materially change the outcome of the Federal Reserve's interest rate meeting.

He noted that despite a good September jobs report and continued progress in easing inflation, he expects a 25 basis point rate cut at each of the two remaining rate meetings this year.

This pace of rate cuts is likely to continue through 2025, until rates return to a neutral level of around 3% next summer.

According to the latest CME Fed Watch, the probability of the Fed cutting interest rates by 25 basis points in November is 83.3%, while the probability of maintaining the current interest rate unchanged is 16.7%.

So, in general, based on the current data, the possibility of the Federal Reserve changing its interest rate cut strategy in November is very low, and it is likely to cut interest rates by 25 basis points.

2. The Bank of Korea cut interest rates by 25 basis points

Today, the Monetary Policy Committee of the Bank of Korea held its seventh meeting this year and decided to lower the benchmark interest rate from 3.50% to 3.25%, a reduction of 25 basis points.

This interest rate cut means that the Bank of Korea has finally begun to move towards easing after more than three years of monetary tightening.

Meanwhile, on October 10, South Korea’s Financial Services Commission (FSC) announced that they would reconsider lifting the ban on spot cryptocurrency ETFs and institutional accounts trading on cryptocurrency exchanges.

This shows that the regulator’s attitude towards digital assets has changed significantly. The FSC has also established a new cryptocurrency committee specifically responsible for reviewing these bans.

South Korean lawmakers have been calling for a change to the status quo, with both the ruling Democratic Party and the opposition pledging support for a local spot Bitcoin ETF during elections earlier this year.

Since 2018, institutional investors in South Korea have been effectively banned from opening trading accounts on cryptocurrency exchanges.

This policy adjustment may open up new channels for institutional investors to participate in the cryptocurrency market.

This suggests that South Korea has joined the global trend of policy easing. If the spot ETF ban is lifted, more funds are expected to flow into the crypto market, which will help drive the bull market in the second half of the year.

3. 15,700 ETH related to Plustoken have been transferred, of which more than 7,000 ETH have been transferred to exchanges

On Oct. 10, on-chain analyst @ErgoBTC noted on Twitter that a large amount of Ethereum (ETH) was transferred in connection with the Plustoken scam.

Approximately 15,700 ETH (worth approximately $1.3 billion) were transferred out of known addresses, of which more than 7,000 ETH were sent to exchange deposit addresses.

@ErgoBTC said that this operation method is similar to the mixed pattern of Bitcoin in 2019 and 2020, and it is expected that these $1.3 billion worth of ETH may be sold in the future.

This may affect the market's confidence in Ethereum in the short term. You can pay attention to the movements and sales of this address.

4. Trump's chances of winning are far ahead of Harris

According to the latest Polymarket data, Trump's chances of winning have risen to 55.4%, while Harris' chances of winning have dropped to 44.1%.

That means Trump is now 11.3% ahead of Kamala Harris.

In general, the market decline this time was mainly due to several reasons: the US CPI data was worse than expected, the US stock market fell, and Plustoken transferred 7,000 ETH to the exchange, causing a certain panic in the market.

However, from a broader perspective, China and the United States have begun to relax monetary policy, and South Korea has also joined the ranks.

The Bank of Japan has also become more dovish and stopped raising interest rates. All of this shows that global monetary policy is slowly becoming looser.

In addition, the halving effect of Bitcoin is also worth paying attention to. After each halving, Bitcoin usually has a consolidation period of about 6 months. Now, Bitcoin has been consolidating for 161 days.

Coupled with the high probability that Trump will be elected as the US president, and the inflow of compensation funds from FTX users, these positive factors have not yet been realized by the market.

Once the market reacts, Bitcoin is likely to quickly break through new highs.

So now is the darkness before dawn, hold on and don’t get washed out at this time.