Morning Report | Bitcoin's sharp decline leads to record fund redemptions for BlackRock's ETF; US Treasury TGA sees significant decline for the first time; Vitalik Buterin introduces Ethereum in 30 minutes
Overview of Important Market Events on November 19整理：ChainCatcher
Important News:
- The Ethereum treasury company led by Huobi founder Li Lin has been suspended, previously planned to raise $1 billion
- Cloudflare: The massive outage was caused by a configuration error rather than a network attack
- Xu Zhengyu: Hong Kong plans to expand the scope of tax exemptions to digital assets and will submit a bill next year
- QCP: The current US economy is closer to the late cycle rather than a recession, and this week's data will determine Bitcoin's future direction
- Vitalik: Quantum computing may crack elliptic curve cryptography before the 2028 US presidential election
- Bitcoin's sharp decline leads to record fund redemptions for BlackRock's ETF
- US Treasury TGA sees significant decline for the first time, market liquidity expected to ease
What important events have occurred in the past 24 hours?
According to ChainCatcher, as reported by Wu Shuo, the $1 billion Ethereum DAT plan led by Li Lin, Shen Bo, Xiao Feng, and Cai Wensheng has been suspended, and the funds raised have been returned. This plan was the largest DAT led by Asian investors, and industry insiders speculate that the suspension was mainly due to the bear market following the 1011 incident, with many DAT companies experiencing significant stock price declines recently. Regarding whether the plan will be restarted, relevant parties stated that investor interests will be prioritized, and it is still subject to market observation and adapting to the situation.
According to an earlier Bloomberg report, Li Lin (founder of Huobi) was working with Shen Bo (co-founder of Distributed Capital), Xiao Feng (CEO of HashKey), and Meitu founder Cai Wensheng to establish a new digital asset trust fund, planning to initially purchase approximately $1 billion worth of ETH. The team is negotiating to acquire a Nasdaq-listed shell company for structural setup, with funds including $200 million from Li Lin's Avenir investment company and about $500 million from Asian institutions such as Sequoia China.
Cloudflare: The massive outage was caused by a configuration error rather than a network attack
According to ChainCatcher, an analysis report published on Cloudflare's official blog stated that the massive outage on November 18 was not caused by an external network attack, but rather by an erroneous configuration file generated after a database permission adjustment, which caused core proxy systems to malfunction, leading to interruptions in multiple products including CDN, security services, Workers KV, Turnstile, and Access. This was the most severe incident since 2019.
The report pointed out that the team initially misjudged the incident as a DDoS attack, and ultimately completed the repair by rolling back to an old configuration file. The related services were fully restored at 01:06 Beijing time on November 19. Cloudflare called this outage "unacceptable" and will accelerate the improvement of system resilience.
According to ChainCatcher, in a recent interview, Xu Zhengyu, Secretary for Financial Services and the Treasury of Hong Kong, revealed that Hong Kong is continuously optimizing its tax exemption policies and plans to expand the current scope of tax exemptions from family offices and funds to emerging product categories such as private credit, carbon credits, and digital assets, with a bill to be submitted to the Legislative Council next year.
According to ChainCatcher, QCP released a daily market observation stating that this week, Bitcoin continued to decline, briefly falling below the key $90,000 mark, due to tightening market expectations for interest rate hikes and continued outflows from ETFs, which dampened market sentiment. Thin liquidity further amplified this decline, indicating that Bitcoin is becoming increasingly sensitive to changes in the macro environment.
This pullback occurred against the backdrop of rapidly re-pricing expectations for the Federal Reserve—shifting from almost certain rate cuts to a roughly balanced probability. This puts pressure on interest rate-sensitive assets like Bitcoin, while the stock market remains relatively stable due to robust corporate earnings, especially strong profits and record AI-driven capital expenditures reported by large tech companies.
As the US government reopens, official data is being released, providing the market with necessary insights into economic fundamentals. This week, the market is highly focused on labor market data and the Conference Board's leading economic index, which has now incorporated the latest job vacancy data. This information will help determine whether labor tightness or inflation will dominate the Federal Reserve's policy response.
Beneath the surface, the US economy still shows a K-shaped divergence: high-income households maintain resilient spending, while low-income groups face increasing pressure. Federal Reserve Chairman Powell reiterated a cautious stance, stating that rate cuts are "not certain." Overall, the current economic conditions are closer to the late cycle rather than a recession.
Despite ongoing risks from fiscal constraints and labor market divergence, the resilience of household balance sheets and corporate capital expenditures still provides a buffer against downturns. This week's data will determine whether Bitcoin's pullback is a temporary position adjustment or the beginning of a broader decline in risk appetite.
According to ChainCatcher, monitoring by Solid Intel revealed that Vitalik Buterin warned at Devconnect that quantum computing could crack elliptic curve cryptography before the 2028 US presidential election and urged ETH to transition to quantum-resistant cryptography within the next four years.
Bitcoin's sharp decline leads to record fund redemptions for BlackRock's ETF
According to ChainCatcher, as reported by Jin Shi, Bitcoin's sharp decline has led to record fund redemptions for BlackRock's ETF.
AI-native tax engine company Sphere completes $21 million Series A funding, led by a16z
According to ChainCatcher, AI-native tax engine startup Sphere announced the completion of $21 million in Series A funding, led by a16z, with participation from Y Combinator, Felicis, 20VC, and others.
Sphere uses AI to automatically parse global tax laws and achieve end-to-end tax compliance automation needed for global expansion through over 100 local tax filing channels, being hailed as the "tax version of Deel." The system is designed for cross-border income compliance, aiming to enable businesses to "operate globally" from day one.
US Treasury TGA sees significant decline for the first time, market liquidity expected to ease
According to ChainCatcher, the latest data shows that the US Treasury's cash balance account (TGA) has seen a significant decline for the first time: Treasury cash decreased from $959 billion by $34 billion to $925 billion.
JPMorgan traders believe that pressure in the repurchase market is the main reason for the stock market reversal this month. Due to the combined effects of government shutdowns, increases in the Treasury's general account (TGA), and quantitative tightening (QT), the US Treasury had previously absorbed a large amount of capital, leading to a deterioration in cash accessibility within the financial system.
Now, as the US Treasury begins to release funds, market liquidity is expected to ease. (Wall Street Insight)
Strike founder: Buy the dip, because Bitcoin's decline is essentially a currency collapse rather than an asset
According to ChainCatcher, Jack Mallers, founder of the Bitcoin payment app Strike, posted on X platform in response to the recent decline in the Bitcoin market, stating that investors need to understand that what is truly collapsing now is not the asset but the currency. Bitcoin is the only market that honestly reflects this, and the rising gold prices indicate that the fiat currency system has collapsed. Bitcoin acts like a liquidity alarm, encouraging buying the dip because the problem lies with the currency.
Tom Lee says the market will approach a bottom this week, Bitwise CIO agrees and calls it a "once-in-a-lifetime long-term buying opportunity"
According to ChainCatcher, Tom Lee stated in a recent CNBC interview, "We are close to bottoming this market."
In response, Bitwise Chief Investment Officer Matt Hougan agreed with this view and stated that now is a "once-in-a-lifetime long-term buying opportunity." Matt Hougan believes that investors are overly anxious about AI valuations, macroeconomics, tariffs, and other events.
"Machi" has been liquidated 71 times on Hyperliquid so far this month
According to ChainCatcher, monitoring by lookonchain revealed that since November 1, the top three "on-chain maniacs" with the most liquidations on Hyperliquid are:
Machi Big Brother (@machibigbrother) --- 71 liquidations
James Wynn (@JamesWynnReal) --- 26 liquidations
Andrew Tate (@Cobratate) --- 19 liquidations
According to ChainCatcher, 10x Research stated in its latest report that despite the increasingly strong narrative in the market that "Bitcoin has entered a bear market," many traders are still maintaining long positions and are under pressure due to this round of decline.
The institution pointed out that the currently popular "three years up, one year down" old cycle logic is being referenced again, but the key is whether a "crowded consensus expectation" has formed, thus creating reverse layout opportunities. 10x Research mentioned that they turned bearish at the end of October, after which the implied volatility of Coinbase's stock significantly declined, exhibiting the typical characteristics of "sharp drops and sharp rises coexisting" in a bear market environment.
They emphasized that bear markets are extremely difficult to navigate, but due to the volatility, they often give rise to the best strategic opportunities. The report stated that Bitcoin is testing its long-term upward trend line, which has formed key bottoms every time it touched that trend line in previous years, potentially marking a short-term or strategic turning point.
The key question now is no longer whether the market has entered a bear market, but rather "is this a position to buy the dip, or a turning point to be cautious?"
New Hampshire launches the first municipal bond backed by Bitcoin
According to ChainCatcher, New Hampshire has officially approved the nation's first municipal bond backed by Bitcoin, amounting to $100 million, marking the first entry of digital assets into the traditional municipal financing system and seen as an important step for Bitcoin towards the $140 trillion global bond market.
The bond is authorized by the state's Business Finance Authority (BFA), but it does not carry risks for the state government or taxpayers, with the safety of funds guaranteed by over-collateralized Bitcoin held in custody by BitGo. Borrowers must provide approximately 160% of BTC as collateral, and if the collateral ratio falls to about 130%, the system will automatically liquidate to protect the rights of bondholders. New Hampshire Governor Kelly Ayotte stated that this is a "historic breakthrough in the field of digital finance," which can attract investment without using public funds.
The structure was designed by Wave Digital Assets and Rosemawr Management, with Orrick law firm involved in compliance architecture. Industry insiders say this model may pave the way for digital assets to enter the municipal bond, corporate bond, and other fixed-income markets, laying the foundation for future Bitcoin bonds issued by state treasuries.
Meme Popularity Rankings
According to the meme token tracking and analysis platform GMGN, as of 09:00 on November 20,
The top five popular ETH tokens in the past 24 hours are: SHIB, LINK, PEPE, UNI, ONDO
The top five popular Solana tokens in the past 24 hours are: TRUMP, PEENGU, ME, PUMP, VINE
The top five popular Base tokens in the past 24 hours are: ZORA, VIRTUAL, B3, SLAP, USI
What are some interesting articles worth reading in the past 24 hours?
Vitalik Buterin introduces Ethereum in 30 minutes (2025 version)
It is a limited-scale computer designed specifically for global consensus, extreme robustness, and decentralization, which anyone anywhere in the world can trust to run continuously according to the programmed settings.
A $500,000 lesson: he made the right prediction but ended up in debt
Last week, the most talked-about topic globally was "the end of the US government shutdown," as global capital markets were watching the US's actions, and when it would reopen indicated potential policy changes.
On the largest prediction market, Polymarket, the market related to "when will the government reopen" had a trading volume exceeding $100 million, reflecting the market's attention. Interestingly, many people predicted the outcome correctly but still lost money.
Let's rewind to November 12. On this day, positive news kept coming: first, the White House press conference conveyed optimistic signals, indicating that "the end of the government shutdown is likely to happen on Wednesday (November 12)." Then, on the evening of the 12th, President Trump officially signed the bill to end the shutdown, broadcasted live on television.
After an 80% drop in stock price, does BitMine have a value mismatch?
Against the backdrop of three main buying paths being pressured simultaneously and a retreat in the staking ecosystem, Ethereum's next phase of price support faces structural testing. Although BitMine is still buying, it is almost fighting alone; if even BitMine, this last pillar, cannot be moved, what the market will lose is not just a stock or a wave of capital, but potentially the foundational belief of the entire Ethereum narrative.
Crypto ETFs are now live; stablecoins have been integrated by mainstream companies; regulatory attitudes have become friendlier; everything we wanted has arrived!
So why isn't your coin rising? Why has Bitcoin given back all its gains while the US stock market has risen 15-20% for the year?
Now the mainstream view has shifted to "crypto is not a scam," so why is your favorite altcoin still underwater?
Risk warning
Risk warning
