US inflation rate rises to 3.7%

Affected by higher than expected inflation data in the United States, the market's bet on the Federal Reserve raising interest rates has intensified, leading to a decline in gold prices and gold mining stocks. Barrick Mining (B.N) fell 1.5%, while Newmont (NEM. N) fell 1.7%. HMY. N fell 1.6%, GFI. N fell 0.8%, and SBSW. N fell 2.6%. Agnico Eagle Mining (AEM. N) fell 2.2%, while Kinross Gold (KGC. N) fell 1.6%. AI interpretation: The unexpected rise in inflation data directly shattered the market's illusion of a rapid decline in inflation. This result completely reversed the expectation of interest rate cuts and forced a large-scale withdrawal of funds from safe haven assets. The sustainability of the high interest rate environment has been further consolidated, directly suppressing the valuation space of precious metals. The collective decline of mining stocks reflects investors' deep concerns about rising financing costs and deteriorating profit expectations.

Nick Timiraos stated that potential inflation in September exceeded expectations for the second consecutive month, strengthening the reason for the Federal Reserve to raise interest rates again this year. The core CPI increased by 0.33% month on month in September, higher than the 0.29% in August. Federal Reserve officials recently stated that they do not expect to adjust interest rates at their meeting in two weeks. The final level of interest rate increase depends on whether the pressure brought by the rise in energy prices and the investment boom in artificial intelligence spreads to the overall economy. AI interpretation: Core inflation continues to rise beyond expectations, directly breaking the market's illusion of a rapid decline in inflation. Stubborn price pressures have forced the Federal Reserve to maintain a tightening stance, completely blocking the space for a short-term shift towards easing. The high interest rate environment will exist for a long time to cope with the risk of secondary inflation brought about by the energy and investment boom. This data clarifies the hawkish tone of monetary policy, and the market must reprice high interest rates for a longer window of time.

Sahil Arora, a promoter of encrypted celebrity tokens, has launched the Floyd Mayweather Meme coin on the Solana ecosystem trading platform Fomo, which was previously promoted on Floyd Mayweather's social media account. The maximum market value of the token reached $1 million, followed by a 96% decline within 3 hours. After promoting the Floyd Mayweather account, the deployer's wallet sold tokens and made a profit of $5000, and the related post was subsequently deleted. Sahil Arora stated that the process was planned by him and claimed to have made seven figure profits through other wallets. BubbleMaps reported that the largest associated wallet cluster earned approximately $105000, with the top 100 traders earning a total of $306000. (Source: Decrypt)

Scott Bessent stated that under the leadership of the future US Treasury Department, politically motivated "de banking" actions will not happen again.

Ethereum researcher Justin Drake has warned that advancements in AI technology could accelerate mathematical attacks on ECDSA and has called on the industry to enter bunker mode, migrating assets to new addresses where public keys have not been exposed. Coinbase Chief Cryptographer Yehuda Lindell stated that there is currently no evidence suggesting the mathematical assumptions of ECDSA have been compromised. Trezor Bitcoin analyst Lucien Bourdon pointed out that asset migration could create opportunities for scams. MetaMask founder Taylor Monahan remarked that if elliptic curve cryptography is broken, bunker mode would be futile. Ethereum has already developed a post-quantum roadmap, and Solana and NEAR are also exploring quantum-safe solutions. (Source: Cointelegraph)