Reya is launching an agentic trading platform. Learn more about it here!
GM friends.
Hereâs what Iâll cover today:
đ WTF just happened?
đ Crypto chart of the week
đď¸ The latest DeFi news
đWTF just happened?
After the midterm elections, both crypto and stocks saw a nice little rally.
But well⌠That certainty didnât last for long.
As I write this, BTC is down 5%, the S&P 500 is down 2.74%, and the Nasdaq-100 is down 4.89% today. The US stock market lost over $2 trillion today.
This dip has nothing to do with crypto fundamentals, but itâs the same old story:
Whenever the stock market goes down, crypto prices are also affected.
As insane as it sounds, this crash seems to have started because of a simple social media post by a Democratic Congresswoman yesterday.
Over the past year, most US stock market gains have been driven by a massive surge in the valuations of AI-related technology companies.
So when a Democratic Congressman called for a pause in AI development, and even a ban on artificial superintelligence, it triggered a major selloff in tech stocks.
Certain Democrats have been saying the same thing for months, but the difference now is that Democrats have just won the US midterm elections in a landslide.
Now that they control the US Congress, they actually have the power to implement serious restrictions on AI development. Itâs worth mentioning, though, that a straight ban on AI, as Yassamin Ansari suggests, is very unlikely to happen.
So the fear around this simple tweet is likely a bit overblown.
But besides the AI regulation fears, I would say that there are two other things that led to a sentiment shift in the stock market over the past few weeks:
The stock market has been getting overleveraged - Just two days ago, US leveraged ETFs saw their largest 1-month rolling inflow in at least 2 years. And more leverage is leading to more volatility and forced liquidations
Fears that the US-Iran war will restart have been growing - Axios reported that the Trump Administration and the US Military are preparing for a possible resumption of "major" combat operations in Iran
All of this is making the stock market very vulnerable to any negative news.
But if we are talking specifically about crypto, I would say that things are looking much better for crypto right now.
According to Stand With Crypto, Americaâs leading crypto advocacy organization, 68% of midterm election winners are pro-crypto.
So while the AI sector may struggle if Democrats elected to the U.S. Congress overregulate it and impose stricter-than-needed restrictions, crypto is certainly in a better political position than AI.
This is why I wouldnât be too concerned about this dip as a crypto investor.
Yes, crypto prices suffer in the short term every time the stock market sees a big dip.
But once the stock market stabilizes and, hopefully, the US-Iran war becomes a thing of the past, I expect crypto to make a comeback.
Brought to you by Reya
Trade like a pro using AI agents
Professional trading firms have used automated trading systems for a long time.
Starting this week, Reya is democratizing access to agentic trading, enabling anyone to build and use automated strategies that Reya executes 24/7.
You can now turn trading ideas into automated strategies in just a few steps.
Hereâs how it works:
Build strategies without coding. You simply describe in English what you want to happen, and the Reya agent will turn your instructions into a trading strategy you can review before approving
Let your strategy run while youâre away - Once you approve it, the strategy will run 24/7 and place orders without requiring you to stay online
Keep control of your funds - All agentic trading happens in a separate account from which the AI agent canât deposit or withdraw funds. Additionally, you can implement safeguards such as a maximum loss before the strategy stops
A few examples of strategies that you can create with Reyaâs agentic trading are:
âLong $10,000 worth of ETH once BTC hits $83,000â or âBuild me a TWAP that buys $100 worth of BTC daily while BTC is trading below $82,000â
What Reya launched this week is just the first step.
Next on the roadmap is launching a data marketplace that lets agents access tweets, sentiment data, and prediction market prices, so they can trade based on the news.
Learn more about Reyaâs agentic trading features here!
Chart of the week
Collector Cryptâs monthly revenue is at ATH
Crypto meme of the weekđ
The latest developments in DeFi
Fluid launched Fluid DEX v2, a highly capital-efficient DEX
Kamino tied its teamâs token vesting schedule to KMNO performance
Ethereum Economic Zone released its first test network, showcasing how it will unify liquidity across L2s
INFINIT opened deposits for its APEX multi-strategy trading vaults until Nov. 11. APEX Phase 2 vaults already surpassed $2M in deposits
Mantle was featured by Anthropic as a production example for AI proofs. Anthropic named Mantle as one of the first L2s running zkSNARKs
Stacks's BTC staking was adopted by major institutions like 21Shares. Bond 3 of Stacks Bitcoin staking was sold out as a result
DeFiLlama launched Proof of Reserves dashboards for on-chain assets
Mezzanine, a novel tranche-based DeFi protocol, went live
245 pro-crypto candidates have been elected to U.S. Congress
Payward, the company behind Kraken, announced an investment in AAVE token
NEAR DAO voted to cut NEAR maximum token inflation from 2.5% to 1.6%
Extended confirmed it will airdrop 30% of its token supply at TGE
Paragon introduced Power Perps, a new type of perps, on Hyperliquid
InfiniFi released its airdrop registration portal
CFTC approved the listing of equity perps on US exchanges
Thatâs all for this week!
Until next time,
The DeFi Investor
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