11.22 AI Daily Report Crypto Assets market welcomes a new milestone, BTC breaks through the $100,000 mark

一. Headline

1. Bitcoin breaks through the $100,000 mark, triggering a new round of frenzy in the cryptocurrency market

The BTC price finally broke through the important psychological barrier of $100,000 on November 22, 2024. Since reaching a new all-time high of $69,000 in November 2021, BTC has been hovering at a low level. This breakthrough will undoubtedly reignite investors' enthusiasm.

The surge of Bitcoin is mainly due to the massive entry of institutional investors. With increasingly clear regulations, more and more traditional Financial Institutions are starting to lay out the Cryptocurrency market. According to data, in just the past month, over $10 billion of institutional funds have flowed into the BTC market.

In addition to institutional investors, the enthusiasm of retail investors is also increasing. Data shows that since early November, the number of new registered users of Cryptocurrencyexchange has surged, and the daily volume has also risen sharply. Analysts believe that this phenomenon is likely due to the expectations of retail investors for Bitcoin to break through $100,000.

The pump momentum of Bitcoin may continue for a period of time. Based on historical experience, once it breaks through an important threshold, Bitcoin tends to continue to rise. However, investors also need to be wary of the potential pullback risk. After all, the Cryptocurrency market has always been volatile, big pump big dump are both normal.

In general, the breakthrough of BTC above $100,000 will undoubtedly bring new vitality to the entire cryptocurrency market. However, investors still need to remain rational and control risks when investing.

2. The Sui mainnet experienced a complete outage, and the team quickly repaired it and analyzed the cause.

On November 21st, the Sui mainnet experienced a complete crash from 5:15 PM to 7:45 PM Beijing time. All validation nodes were stuck in a crash loop and unable to process any transactions.

According to the analysis report released by the SUI official, this downtime is due to the vulnerability in the congestion control code after the protocol upgrade. When receiving a special transaction containing "variable shared object input" and "zero MoveCall instruction", it will trigger the verification Node crash.

It is worth noting that the SUI team responded quickly after discovering the problem. They diagnosed the root cause of the problem within 2.5 hours and released fix version v1.37.4. The vast majority of verification Nodes completed deployment within 15 minutes, allowing the network to resume normal operation.

This event once again highlights the complexity and potential risks of the blockchain system. Even a seemingly minor code change, after repeated testing and auditing, can lead to a network paralysis.

However, the efficient response of the SUI team also gives people full confidence in its technical strength. They not only quickly repaired the fault, but also timely released a transparent analysis report, this open and responsible attitude is commendable.

For users, this incident has caused a temporary inconvenience, but has not resulted in substantial losses. However, it also reminds us to maintain sufficient risk awareness when using any blockchain system.

3. AI-generated code poses security risks, developers need to be vigilant

Recently, a Twitter user revealed that when using large language models such as ChatGPT to generate code, phishing website links were hidden in the code, resulting in a loss of about $2500. After the incident was exposed, Yu Xian, the founder of SlowMist Technology, also confirmed the risk of being hacked by using AI-generated code.

The main cause of this problem is the contamination of the data used to train the AI model. In other words, the model 'absorbed' some unsafe code snippets and malicious patterns during the learning process. When a user requests to generate code, these hidden malicious patterns may be injected into the output result.

Currently, most AI models find it difficult to effectively identify and filter backdoors and malicious content in code. Therefore, developers must be vigilant when using AI-assisted coding, and must not blindly trust the output of AI.

Experts suggest that developers should conduct thorough security audits on AI-generated code before using it to ensure that no malicious content is embedded. In addition, AI companies need to increase investment and improve the training methods of models to eliminate security risks in training data.

Overall, although AI-assisted coding greatly improves development efficiency, its security is still a major challenge. Developers need to pay high attention to this and also look forward to breakthroughs in this field by AI companies.

4. The Trump Media Group may launch the encryption payment service TruthFi

According to reports, Trump Media & Technology Group is considering launching an encryption payment service called "TruthFi". This move is seen as an important step for the group to enter the cryptocurrency field.

The Trump Media Technology Group currently owns the social media platform Truth Social, which focuses on protecting freedom of speech. If TruthFi service is approved, users will be able to use cryptocurrency to pay for subscriptions and tips on Truth Social.

Analysts believe that launching encryption payment services will help the Trump Media Group expand its business scope and attract more cryptocurrency enthusiasts. At the same time, this may also bring new sources of revenue to the group.

However, the Trump Media Group also faces some challenges in promoting TruthFi. The first is regulatory uncertainty, as the regulatory policies for Cryptocurrency are still in a gray area in the United States. The second is the difficulty of technical implementation, which requires the establishment of a secure and reliable CryptocurrencyWallet and payment system.

Overall, the Trump Media Group's attempt reflects the gradual integration of Crypto Assets into the mainstream. As an emerging technology company, it intends to explore the new opportunities brought by Crypto Assets. However, whether it will succeed or not remains to be seen.

5. Gensler will step down as SEC Chairman, XRP price big pump sparks market speculation

The chairman of the Securities and Exchange Commission (SEC) Gary Gensler will step down on January 20, 2025. Once this news came out, the price of XRP experienced a significant pump, with a short-term increase of 24.3%.

Analysts believe that the big pump in the price of XRP is somewhat related to Gensler's departure. Since taking office in 2021, Gensler has maintained a tough regulatory stance on Crypto Assets and has been involved in a long-standing lawsuit with Ripple.

After Gensler's departure, the position of SEC chairman may be taken by someone with a more open attitude. At that time, the dispute between SEC and Ripple is expected to be resolved, and XRP tokens will also have greater development space.

However, some analysts remain cautious about this. They believe that there is still uncertainty about the new chairman's selection and policy direction at the SEC, and the big rise in XRP price may be too exaggerated and speculative.

In addition to XRP, the prices of other cryptocurrency tokens have also experienced varying degrees of pump. This indicates that the market has certain expectations for changes in regulatory policies, hoping that the new regulators can provide greater development space for the cryptocurrency industry.

Overall, Gensler's departure will undoubtedly bring some new variables to the cryptocurrency market. However, the specific impact remains to be seen. Investors should also be extra cautious and manage risks when investing.

2. Industry Data

1. ETH

Recently traded at $3137.5900, with an intraday increase of +0.90%.

2. BTC

The recent transaction price is 96923.2000 US dollars, with an intraday increase of +4.40%.

3. XRP

Recent transaction price is $1.1101, with an intraday increase of +2.70%.

4. APEPE

Recent transaction price is $0.0006, with a daily increase of +49.30%.

5. GT

Recently traded at $9.7350, with a daily decline of -0.10%.

III. Industry News

1. Bitcoin breaks through the $100,000 mark, triggering market frenzy

The price of BTC finally broke through the important psychological barrier of $100,000 today, setting a new historical high. This milestone event has sparked a frenzy in the cryptocurrency market, with investors' sentiment running high. BTC's strong performance is mainly due to the influx of large amounts of funds from institutional investors and the pursuit of retail investors.

Analysts believe that after BTC breaks through the $100,000 mark, it may attract more funds to enter, pushing the price to continue pumping. However, there are also experts warning investors not to blindly follow the trend, as there is still a risk of pullback in BTC price. Investors need to remain rational and control their risk exposure.

Generally speaking, the breakthrough of Bitcoin exceeding $100,000 is undoubtedly an important milestone, marking the entry of the Crypto Assets market into a new development stage. However, investors also need to remain vigilant, allocate assets reasonably, and strike a balance between risk and return.

2. After reaching a new high, ETH fell back, and market analysts are optimistic about the long-term prospects

The price of Ethereum (ETH) fell after reaching a new all-time high yesterday, and is currently trading above $1800. Analysts believe that there may be a certain degree of adjustment in the short term, but the long-term outlook for Ethereum (ETH) remains positive.

The main reasons for pumping the price of Ethereum (ETH) include the rapid development of the Decentralized Finance ecosystem, the upcoming ETH 2.0, and the continued influx of institutional investors. With the continuous improvement of the scalability and security of the Ethereum network, more and more applications are expected to be launched on Ethereum, which will further boost demand for ETH.

However, analysts also point out that the current high gas fees and network congestion issues of Ethereum are still major concerns. If not resolved in a timely manner, they could hinder the long-term development of Ethereum. In addition, the emergence of competitors has also brought certain pressure to Ethereum.

Overall, Ethereum (ETH) is still a leader in the cryptocurrency field, and its long-term prospects are promising. However, investors also need to closely follow the latest developments of Ethereum in terms of scalability, security, etc., and carefully grasp the investment opportunities.

3. Solana's ecosystem is booming, SOL price breaks through $260 to reach a new high

The Solana ecosystem has been thriving recently, with its native token SOL breaking through $260 today, setting a new all-time high. The main reasons driving the big pump in SOL price include the rapid development of hot tracks such as Decentralized Finance, Non-fungible Token, GameFi, and the increasing number of institutional investors and well-known projects entering the Solana ecosystem.

Analysts believe that the prosperity of the Solana ecosystem is mainly due to its high performance, low transaction fees, and continuously launched innovative applications. In the future, with the participation of more high-quality projects, the Solana ecosystem is expected to further expand its influence and attract more capital inflows.

However, some analysts also remind that the rapid development of the Solana ecosystem has brought some hidden dangers, such as network congestion, security issues, etc., which need to be resolved in a timely manner. In addition, the rapid catch-up of other public chain ecosystems has also brought certain pressure to Solana.

Overall, the future prospects of the Solana ecosystem are still worth looking forward to. However, investors also need to conduct thorough due diligence on Solana ecosystem projects and manage risk exposure.

IV. Project News

1. Sui Network Crashes for the First Time, Error Upgrade Code Causes Complete Interruption

Sui is a brand new first-layer blockchain developed by Mysten Labs, aiming to provide high throughput, low latency, and high scalability. On November 21st, the Sui mainnet encountered its first complete network interruption, causing all validating Nodes to enter a crash loop, resulting in the inability to process any transactions.

According to the analysis report released by SUI, this downtime is caused by the 'TotalGasBudgetWithCap' mode enabled in protocol v68, which triggers a crash when receiving special transactions containing 'variable shared object input' and 'zero MoveCall instruction'. The SUI team quickly diagnosed the issue and released fix version v1.37.4. validators completed the deployment within 15 minutes, restoring normal network operation.

As an emerging first-layer public chain, the stability and reliability of Sui are crucial. This incident highlights that there is still room for improvement in Sui's testing and deployment processes. However, the efficient response and repair capabilities of the Sui team are commendable and lay the foundation for future development.

Industry insiders generally believe that, as a representative project of the Move language ecosystem, SUI's development will have a profound impact on the entire Web3 ecosystem. Looking forward to SUI continuously improving in its future development to provide users with more secure and reliable services.

2. Virtuals platform redefines AI agents and builds AI economic infrastructure

Virtuals is a blockchain-based AI agent platform, aimed at redefining AI agents by creating an interconnected AI agent ecosystem. The platform lowered the technical barriers of AI agents and initiated plans and communication protocol, attracting innovators to join.

The Virtuals platform already has many personalized AI agents and is developing the communication protocol between agents. In the future, the infrastructure being built by Virtuals will make AI agents not only tools, but also active participants in the Decentralization economy.

As a completely on-chain operated agency platform, the number of Virtuals agents continues to rise, and is expected to become a unicorn project. The platform provides vast imagination space for AI agents, with huge market potential.

Analysts believe that the Virtuals platform has opened up a new path for the development of AI agents. By building AI economic infrastructure, Virtuals is expected to become the hub of the AI economy, promoting the application of AI technology in various fields. At the same time, the interconnection between agents will also give birth to new innovative models.

Although Virtuals is still in its early stages of development, its ambitious goals and innovative ideas have already attracted widespread follow in the industry. We have reason to expect that Virtuals will bring new opportunities for the development of AI agents in the near future.

3. Beam Chain: Performance Breakthrough and Upgrade Plan for Ethereum 3.0

At the 2024 Devcon conference, Ethereum Foundation researcher Justin Drake released the "Ethereum 3.0" proposal plan, aiming to improve network performance and security through a series of enhancements, with the most notable being the Beam Chain upgrade plan.

The core changes of BEAM Chain include: increasing Block production, improving stake mechanism, enhancing security, using Sharding technology to accelerate processing speed, and resisting the threat of Quantum Computing. If successfully implemented, BEAM Chain will significantly improve the scalability of Ethereum, drop Transaction Cost, and further decentralize the network.

The proposal has sparked heated discussion as soon as it was released. Supporters believe that Beam Chain is key to Ethereum maintaining its leading position, which will give it a huge advantage in scalability and security. However, some are concerned that there may be insufficient community participation in the advancement process, and the target timeline is too slow (expected to be completed in 2029), which may affect the smooth progress of the upgrade.

Regardless, Beam Chain is considered as one of the most important developments in the history of Ethereum. Its implementation will have a profound impact on the entire blockchain industry and will also determine whether Ethereum can continue to maintain its leading position. We wait and look forward to the Ethereum team efficiently advancing this important upgrade.

4. Battle of AI Proxy Ecosystems: Luna vs Eliza

In the field of AI intelligence, Virtuals has gained widespread follow through the tokenization AI intelligence platform, while AI16z's Eliza platform is vibrant. In addition, Hoorld demonstrates the ability to autonomously generate videos and dialogues with AVA, and Myshell has its own Web3 intelligent agent market.

In the future, Decentralized Finance intelligent beings will become the next wave. Platforms like Mode Network are preparing to launch hundreds of intelligent beings dedicated to Decentralized Finance. However, with the emergence of new orchestration layers and platforms, this field is evolving rapidly, and the future direction remains to be seen.

The competition in the AI agent ecosystem is becoming increasingly fierce. Every platform is striving to attract developers, users, and capital in order to gain a competitive advantage in this emerging field. At the same time, technological innovation and the expansion of application scenarios are also constantly advancing.

Analysts believe that the development prospects of the AI agent ecosystem are promising, but they also face many challenges. Issues such as security, privacy protection, and interpretability need to be addressed. At the same time, exploring business models and formulating regulatory policies are also urgent tasks.

Regardless, AI agent ecology is becoming one of the hottest topics to follow in the Web3 field. We have reason to believe that in the near future, this track will give birth to more innovative achievements and bring new vitality to the entire industry.

5. Economic Dynamics

1. Federal Reserve officials reiterate the continuation of interest rate hikes, with inflation pressure remaining high

Economic background: The U.S. economy is facing severe inflation pressure in 2024. According to the latest data, the U.S. October consumer price index (CPI) rose by 7.7% year-on-year, higher than expected. Despite a slight slowdown in the inflation rate, it is still far above the Federal Reserve's target level of 2%. The annualized quarterly rate of GDP in the third quarter of the United States was 2.6%, and the economy slowed down.

Important Event: Federal Reserve officials recently made speeches reiterating their commitment to continue raising interest rates to curb inflation. Chicago Fed President Gulbis said that the labor market is still overheated and the pace of rate hikes needs to be slowed down. Cleveland Fed President Mester emphasized that inflation pressures remain high and further rate hikes are needed. The market expects the Fed to raise rates by another 50 basis points in December.

Market Reaction: Hawkish remarks from Federal Reserve officials have intensified concerns about an economic recession. Investors worry that excessive tightening may lead to an economic hard landing. The three major US stock indexes fell on Tuesday, with the Dow Jones falling 0.59%, the S&P 500 falling 0.09%, and the Nasdaq falling 0.49%. Bond yields rose, with the yield on the US 10-year Treasury note rising to 3.76%.

Expert Opinion: Jan Hatzius, Chief Economist at Goldman Sachs, said that the Federal Reserve still needs to continue raising interest rates to drop inflation expectations. However, he warned that if the inflation rate drops too quickly, the Fed may pause rate hikes in the first half of 2024. Rick Rieder, Chief Investment Officer at BlackRock, believes that the Fed should stop raising rates in early 2024 to avoid triggering a severe recession.

2. European Central Bank raises interest rates by 75 basis points, euro area inflation remains high

Economic background: The Eurozone economy is facing severe inflationary pressure in 2024. According to the latest data, the inflation rate in the Eurozone reached 10.6% in October, far exceeding the European Central Bank's target of 2%. Despite the decline in energy prices, the core inflation rate is still rising. The Eurozone's GDP annualized quarterly growth rate in the third quarter was 0.2%, indicating an economic recession.

Important event: The European Central Bank decided to raise the Benchmark Interest Rate by 75 basis points to 2.5% at its monetary policy meeting in November. This is the European Central Bank's fourth consecutive significant rate hike, aimed at curbing inflation expectations. ECB President Lagarde stated that further rate hikes will be implemented to bring the inflation rate down to the 2% target.

Market Reaction: The decision of the European Central Bank has intensified concerns about economic recession in the eurozone. European stocks closed lower on Thursday, with the pan-European Stoxx 600 index falling 0.7%. The EUR/USD exchange rate slightly pumped to $1.04. Bond yields rose, with the yield on 10-year German government bonds rising to 2.01%.

Expert opinion: David Folkerts-Landau, Chief Eurozone Economist of Deutsche Bank, said that the European Central Bank needs to continue raising interest rates significantly to drop inflation expectations. However, he warned that if the inflation rate drops too quickly, the European Central Bank may pause its interest rate hikes in the second half of 2024. Hélène Baudchon, Chief Economist of Crédit Agricole, believes that the European Central Bank should stop raising interest rates in the first half of 2024 to avoid triggering a severe recession.

3. China's economic recovery is weak, and the government is stepping up efforts to stabilize the rise policy

Economic background: The Chinese economy is facing severe downward pressure in 2024. According to the latest data, China's GDP rose by 3.9% year-on-year in the third quarter, lower than expected. Industrial production and consumption data in October were also lower than expected, reflecting the lackluster economic recovery. China's inflation pressure is relatively mild, with a 2.1% year-on-year pump in CPI in October.

Important event: The Chinese government has recently introduced a series of stable rise policy measures. The People's Bank of China lowered the reserve requirement ratio in November, releasing long-term funds of about 500 billion yuan. The Ministry of Finance announced that it will increase infrastructure investment and introduce new policies for tax reduction and fee cuts.

Market reaction: China's stable rise policy has boosted market confidence. The Shanghai Composite Index closed up 1.7% on Thursday, while the ChiNext Index pumped 2.8%. The exchange rate of the Chinese yuan against the US dollar rose slightly to 6.98 yuan. Bond yields fell, with China's 10-year government bond yield falling to 2.81%.

Expert opinion: Huang Qifan, Vice Chairman of the China International Economic Exchange Center, stated that the downward pressure on the Chinese economy is still significant and further policy measures are needed. He predicts that China's economy will stabilize and rebound in the second half of 2024. Liang Hong, Chief Economist of CITIC Securities, believes that China's economic rise in 2024 may be below 5%, and the government needs to increase infrastructure investment.

Six. Regulation & Policy

1. The Consumer Financial Protection Bureau of the United States has explicitly stated that Cryptocurrency is not within the scope of the new regulations

The Consumer Financial Protection Bureau (CFPB) recently finalized a new rule called "Defining Larger Participants of the Digital Wallet and Payment App Market". The rule aims to give the CFPB the authority to regulate 'larger nonbank companies' that provide services such as digital Wallet and payment apps.

According to the rule content, non-bank financial companies that process more than 50 million transactions per year must follow the same rules as large banks and credit cooperatives. However, the CFPB explicitly stated in the final version that the regulatory scope will be limited to "transactions conducted in US dollars", which means that digital assets such as cryptocurrency are not within the regulatory scope.

Previously, the encryption industry and some Republican lawmakers expressed concerns about the possible impact of the rule on encryption assets. The Decentralized Finance Education Fund welcomes the latest version and states that the rules for digital assets should be formulated by Congress, not regulatory agencies. Groups like the Crypto Council for Innovation and Coin Center have also expressed opposition to the initial draft.

Experts believe that the CFPB's move reflects the regulatory agency's cautious attitude towards encryption assets. Although they are temporarily excluded, encryption assets are expected to be included in a unified regulatory framework in the future as regulatory policies become clearer.

2. The U.S. Financial Industry Regulatory Authority adds a dedicated zone for encrypted assets

The U.S. Financial Industry Regulatory Authority (FINRA) has added a dedicated zone on its official website for encryption assets. Although the term 'encryption asset securities' is not mentioned directly, it points out that certain encryption assets or transactions may meet the definition of securities.

The new zone provides a detailed introduction to different types of encryption assets and their trading methods, as well as listing related risks, and linking to resources from regulatory agencies such as the SEC, CFTC, and FTC. FINRA emphasizes that determining whether encryption assets or transactions are securities should be based on the definition of federal securities laws, and may use standards such as the Howey Test and Reves Test.

This move is seen as a signal of FINRA's strengthening of supervision over encryption assets. Analysts believe that as the encryption asset market continues to grow, regulatory agencies need to establish a unified regulatory framework to clarify the legal status and regulatory requirements of encryption assets.

Experts point out that FINRA has added a dedicated zone to enhance industry practitioners' and investors' risk awareness and prepare for future rulemaking. It is expected that the regulation of encryption assets will be further refined and improved in the future.

3. CFTC Commissioner Calls for Accelerating the Formulation of Cryptocurrency Policies

Commissioner Summer Mersinger of the Commodity Futures Trading Commission (CFTC) delivered a speech at the North American Blockchain Summit, calling for the establishment of Cryptocurrency standard policies through formal notification and review procedures.

Mersinger said that there are problems with the regulatory authorities' "enforcement-style regulation" strategy towards the Cryptocurrency industry, with particular mention of the case of Uniswap Labs. She emphasized that the CFTC is the "ideal regulatory agency for the Cryptocurrency Spot market" because it is able to quickly implement significant legislative changes without disrupting the market.

Mersinger pointed out that although Cryptocurrency entities are often classified into existing categories and are required to comply with the same laws, there is currently no formal registration process. She suggested that the Cryptocurrency industry should start engaging as soon as the new government leadership is determined to promote early dialogue. It is worth noting that the recent settlement amount reached by CFTC with Uniswap is relatively small, reflecting subtle changes in regulatory attitudes.

Industry insiders believe that Mersinger's call reflects the dissatisfaction of regulatory agencies with the current state of cryptocurrency regulation. The formulation of unified and clear policies will help create a favorable environment for the development of the industry. However, the specific policy direction still needs to be followed continuously.

4. The Trump administration may establish an encryption advisory committee and establish a BTC reserve.

According to Reuters, multiple encryption companies, including Ripple and Circle, are competing for seats on the encryption advisory committee promised by Trump.

Sources say the committee may be subordinate to the White House National Economic Council or an independent agency. Its main responsibilities include coordinating digital asset policies, collaborating with Congress to establish encryption legislation, establishing a BTC reserve, and collaborating with institutions such as the SEC, CFTC, and Treasury Department. In addition, the Trump team is also considering the establishment of an encryption "czar" role to lead the committee.

During his campaign, Trump promised to build an 'encryption president' image, ending the current president's strict regulation of encryption companies. Insiders revealed that Coinbase CEO Brian Armstrong recently met with Trump, and Circle CEO Jeremy Allaire also publicly expressed his willingness to join the committee.

Analysts believe that the establishment of the encryption advisory committee and the establishment of BTC reserves by the Trump administration will bring significant Favourable Information to the Cryptocurrency industry. However, the specific policy direction still needs to be followed. Some consumer groups have warned that the encryption industry should not dominate rule-making.