Gate Daily (October 28): Trump nominates Michael Selig as CFTC Chairman; US inflation "explodes" driving the rise of Bitcoin ETP.

Bitcoin (BTC) pulled back from its overnight gains, reported at around $114,080 on October 28. President Trump nominated U.S. SEC official Michael Selig to serve as the CFTC chairman, citing that the committee will focus on cryptocurrency policy. Due to U.S. inflation data being below expectations, investor confidence has improved, and cryptocurrency investment products regained growth momentum last week. Trump plans to announce his successor to Powell months in advance, with the range of candidates already locked in.

Macroeconomic Events & Crypto Circle Hotspots

1. Michael Selig, an official from the U.S. Securities and Exchange Commission (SEC), announced that President Donald Trump has nominated him to serve as chairman of the Commodity Futures Trading Commission (CFTC), citing that the commission will focus on cryptocurrency policy. This move still requires Senate approval, and there are currently several vacant seats in the agency. In a weekend post, Selig and White House cryptocurrency and artificial intelligence director David Sacks confirmed reports that Trump would nominate him to be CFTC chairman, laying the groundwork for the departure of acting chair Caroline Pham. Selig's nomination had not appeared in congressional records or official White House announcements at the time of this article's publication, and he reiterated Trump's goal of making the U.S. the “crypto capital.”

2. Due to U.S. inflation data falling short of expectations, investor confidence has improved, and cryptocurrency investment products regained growth momentum last week. CoinShares reported on Monday that last week, inflows into cryptocurrency exchange-traded products (ETPs) amounted to $921 million, surpassing the outflow of $513 million from the previous week. CoinShares' research director, James Butterfill, stated that the main driver of the bullish trend in the crypto fund market is the renewed confidence in further interest rate cuts in the U.S., and the lower-than-expected CPI data released on Friday boosted this trend. The Consumer Price Index rose 0.3% in September, with an annual inflation rate of 3%, both lower than expected.

3. Trump stated on October 27 that he may announce a nominee to replace Federal Reserve Chairman Powell before the end of the year. Powell's term will end in May next year, and the candidate pool has now been narrowed down to five final candidates. Treasury Secretary Basant plans to conduct a second round of interviews with the current list of candidates next month, after which he will submit a more streamlined list of nominees for the President's consideration. Basant revealed on Monday that the five final candidates include two current board members who were initially nominated by Trump to the Federal Reserve Board: Christopher Waller and Michelle Bowman, who also serves as Vice Chair for Bank Supervision.

News Dynamics

1. The stablecoin USD1 supported by Trump has partnered with Enso to expand its DeFi business footprint across various chains.

2. The Hong Kong Securities and Futures Commission has launched a tender for a virtual asset trading monitoring system.

3. US Congressman Ro Khanna will introduce a bill to “prohibit the president and elected officials from holding or creating Crypto Assets.”

4. S&P rated Strategy as junk in its initial rating due to weaknesses such as excessive concentration in encryption business.

5. Monad: The airdrop distribution results will be announced tomorrow.

6, US lawmakers: Congress must pass encryption legislation before January/February next year, or election politics will hinder the legislative process.

7. Trump plans to announce Powell's successor months in advance, with the range of candidates narrowed down to five final choices.

8. GrayScale announces that its Solana trust now supports staking features.

9. GMGN Refutes Rumors: The rumors of a hacker attack are false; the platform has no security issues and user funds are safe.

10. Lighter responds to “HYPE abnormal order book data”: caused by an out-of-control robot and has not triggered liquidation; the front end has hidden it.

Market Trend

1. Latest Bitcoin news: $BTC pulls back overnight gains, currently reported around 114,080 USD, with 65.84 million USD liquidated in the past 24 hours, mainly from short positions;

2. All four major U.S. stock indices reached new closing highs on October 27, as investors felt optimistic about the prospects of a trade agreement between the U.S. and China, and looked forward to the earnings reports from several large technology companies this week, as well as an expected interest rate cut by the Federal Reserve. The Dow Jones Industrial Average closed up 337.47 points, a gain of 0.71%, at 47,544.59 points; the S&P 500 index rose 83.47 points, up 1.23%, closing at 6,875.16 points, breaking the 6,800 point mark for the first time; the Nasdaq index surged 432.59 points, a rise of 1.86%, closing at 23,637.46 points. The Philadelphia Semiconductor Index jumped 191.04 points, a gain of 2.74%, closing at 7,167.98 points.

(Source: Gate)

3. In the Gate BTC/USDT liquidation map, based on the current 114,207.50 USDT, if it drops to around 113,687 USD, the cumulative liquidation amount of long positions exceeds 121 million USD; if it rises to around 116,525 USD, the cumulative liquidation amount of short positions exceeds 852 million USD. The liquidation amount for shorts is significantly higher than for longs, suggesting to reasonably control the leverage ratio to avoid triggering large-scale liquidations during market fluctuations.

(Source: Coinglass)

4. In the past 24 hours, BTC spot inflow was $2.6 billion, outflow was $2.66 billion, with a net outflow of $0.06 billion.

(Source: Coinglass)

5. In the past 24 hours, contracts such as $MAVIA, $BCH, $GIGGLE, $DOT, and $TRUMP have experienced net outflows, indicating trading opportunities.

X KOL Selected Insights

Phyrex Ni (@Phyrex_Ni): “Today's task is not difficult, as expected, after Monday, good news about China-US trade has been coming out one after another. From the current information, although it is not yet final, a preliminary consensus has been reached on the new trade framework between China and the US. In simple terms, the 100% tariff on November 1st should be gone, and furthermore, a meeting between Trump and Xi has been arranged in the short term, even preparing for a short-term visit early next year.”

“The biggest gamble right now is the rate meeting at midnight on Thursday. Continuing to cut rates by 25 basis points is still the most likely outcome. Powell probably won't say anything too hawkish, as the CPI data is still decent, while the PCE data won't be available until the next day, which reduces the Fed's dilemma. As long as there are no major issues with the economy and unemployment rate, the expectation is that the Fed won't continue to cut rates in December.”

“Looking back at the data for Bitcoin, although the turnover rate has increased, this is a normal situation for weekdays, and the increased turnover rate is not excessively high, still within a normal range. Especially from the turnover data, it is still short-term bottom-fishing investors who are the main force in the current turnover, while long-term investors have not changed much. Currently, the market sentiment can be considered stable, as long as the Federal Reserve does not create any surprises on Thursday, the main direction of impact on the market is left with only some geopolitical conflicts. The China-U.S. trade can at least be peacefully postponed; a halt is just a matter of time. I hope there won't be any new troubles.”

Today's Outlook

1. The United States' October Conference Board Consumer Confidence Index, previous value was 94.2