“Morning Minute” is a daily newsletter written by Tyler Warner. The analysis and opinions contained within represent solely the author's views and do not necessarily reflect the stance of Decrypt. You may also follow their daily news program “FOMO HOUR”, which covers top news and market trends.

GM!

Today's News:

• Mainstream encrypted assets fell by 4% to 6%, AI stocks tumbled; Bitcoin traded at $76,100
• On that day, over $1.1 billion in long positions in cryptocurrencies were liquidated.
• The Democratic Party stated that it will investigate Trump's business dealings, starting with WLFI.
• Solana Labs launches a new mobile trading app named Leap
• Lighter Sets Second-Highest Single-Day Revenue Since February

📉 Bitcoin wipes out the bullish trend, AI stocks plummet

On Wednesday, the market believed that Democratic control of Congress would be beneficial for the stock market. The stock market recorded its best single-day performance in three months, and Bitcoin once again surpassed $80,800. Trump also posted on Truth Social stating that the market "just set another all-time high," and that 401(k) accounts were "incredibly high."

But by Thursday, the market changed its opinion.

The S&P 500 index fell by 4.36%, recording its worst single-day performance since the tariffs imposed on April 15, 2025, known as "Liberation Day." The Nasdaq index tumbled 5.52% and closed within a correction zone, dropping more than 10% from its record high set last month. The Dow Jones Industrial Average lost 1,833 points.

The decline was mainly concentrated in one sector. iShares Semiconductors ETF fell by more than 12%, recording the worst single-day performance since March 2020. Micron tumbled 17.5%, AMD fell 17.3%, Marvell fell 16.4%, and NVIDIA fell 9.3%. The combined market value of the “Big Seven” companies evaporated by about $1 trillion. During the session, VIX once reached 28.09, the highest level since March. At the close, the total market value of the U.S. stock market evaporated by $3 trillion, exceeding the total market value of the entire crypto market.

It is noteworthy that what unsettles investors is precisely the same election result that drove the market up the previous day. In several states where the Democratic Party won, there were active voices opposing the construction of data centers; starting on Thursday, the market began to take into account slower approval processes and stricter regulations for the construction of AI. Ipek Ozkardeskaya from Swissquote stated clearly: "We suspect that such radical AI construction will come under some scrutiny." Interest rate expectations also changed accordingly, with the probability of a rate hike in December dropping from 82.7% to 70.1%.

The crypto market was not spared either. Bitcoin fell by 5.4% to $75,871, below its trading levels before the election. Ethereum dropped by 7.6% to $2,239, experiencing a steeper decline than NASDAQ. XRP fell by 9.8%, and Hyperliquid fell by 4.9%. The CMC20 index declined by 6.29%. On that day, approximately $1.1 billion in long crypto positions were liquidated, followed by a slight rebound the following night.

There are also two assets that have shown resistance to decline. Zcash has fallen by 0.8%, and Monero has fallen by 2.2%, both of which are lower than the overall market decline, and they still remain on the rise this week. Over the past year, Zcash has risen by 146%, and Monero has risen by 74%, while Bitcoin has fallen by 26% and Ethereum has fallen by 34%. Private transactions clearly still exist, and they seem to be strong as ever.

Next, let's focus on Friday's October employment report. This week, the market gave two completely opposite interpretations of the same political outcome within just two trading days, which inevitably raises doubts about how many people really know what they are looking at. The answer will be revealed soon enough...

🌎 Macroeconomics, Cryptography, and Markets

• The prices of major encrypted assets have weakened significantly, falling by 4% to 6%; BTC has dropped by 5%, trading at $75,900; ETH has fallen by 8%, trading at $2,240; SOL has fallen by 7%, trading at $90.1; HYPE has fallen by 5%, trading at $78.40; ZEC has fallen by 1%, trading at $1,310.
• WLFI rose by 3%, PEPE rose by 3%, ARB rose by 4%, leading the gains among major altcoins
• Crude oil prices rose by 2% to $90; gold prices fell by 1% to $4,080.
• After a significant sell-off yesterday, stock index futures rebounded; Dow Jones futures fell by 0.9%, while Nasdaq futures rose by 1.6%.
• In the past 24 hours, during the selling pressure in the crypto market, over $1.1 billion in long crypto positions were liquidated.
• Robert Garcia, who is expected to serve as the chairman of the House Oversight Committee under the new Democratic majority, stated that the committee will investigate the business dealings of the Trump family, including their cryptocurrency operations; World Liberty Financial is likely to be one of the first targets of the investigation, with related inquiries possibly beginning in February.
• The American Bitcoin supported by Trump turned losses into profits in the third quarter, recording a profit of $126 million; in the second quarter, it incurred a loss of $57.2 million, mainly driven by a gain of $197 million from its Bitcoin holdings due to rising prices.
• The NU7 upgrade of Zcash will permanently freeze approximately 12,224 ZEC, valued at around 15.6 million US dollars based on market value, as this upgrade will render invalid the only transaction format that allows for the transfer of coins out of Sprout. Sprout is the original privacy pool launched on this chain in 2016. This upgrade will also reduce the target block time from 75 seconds to 25 seconds.
• Solana Labs launches Leap, a mobile application that allows for 24/7 trading of tokenized stocks, ETF, metals, currencies, and crypto assets. It was developed by the team from Dialect which was acquired by Solana Labs this year.
• The People's Bank of China stated that it has halted the Solana event planned to be held in Shanghai and other cities under the name of Accelerate China 2026, and will investigate domestic entities that placed advertisements for this project in the Lujiazui financial district.

Enterprise Treasury and ETF

• On Thursday, Bitcoin ETF saw a net outflow of $430 million; Ethereum ETF had a net outflow of $100 million.

Meme Coin Tracking

• Most meme coin leaders are falling; DOGE drops by 6%, SHIB drops by 4%, PEPE rises by 3%, PENGU drops by 7%, TRUMP drops by 2%, SPX drops by 5%, BONK drops by 4%.
• Robinhood Most leading cryptocurrencies on the chain experience significant declines; Pons Drops 12%, with a market value of $128 million; Cashcat Drops 8%, with a market value of $94 million; AI Drops 23%, with a market value of $40 million; HOOKR Rises 20%; Priors Rises 8%, leading the gains.
• The main cryptocurrencies with significant gains include BIRB with a 32% increase, COGE with a 78-fold increase, and Diamond with a 900% increase; Cards has seen a 25% decline, wiping out its recent gains.

💰 Tokens, Airdrops, and Protocol Tracking

• Hyperliquid leads the list of on-chain protocols with revenue of $2.72 million, followed by Pump.fun with $1.35 million and Papertrade with $822,000.
• Lighter recorded its second-highest daily revenue since early February yesterday, amounting to $314,000.
• Pump.fun has started recruiting for business expansion positions, covering sustainable contracts, predictive markets, and trading terminals. The scope of business is expanding beyond meme coins.
• Pump.fun has also introduced a new Diamond mode for callout, offering higher rewards for recommendations with greater market value and for longer-term holdings.

🚚 What happened to NFT?

• NFT Leading stocks show divergence; Punks Flat, at 30.4; ETH; BAYC Down 1%, at 5.6; ETH; Pudgy Flat, at 2.25; ETH
• Normies rose by 4%, leading the gains of the main NFT

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