Due to easing trade tensions and optimism for interest rate cuts later this week, the three major US stock indices hit historical highs again on Monday. The crypto market had already reacted in advance yesterday, with Bitcoin (BTC) surging to 116K at one point yesterday, and gradually falling back to above 114K this morning. Digital Asset Treasury (DAT) companies rose across the board. MicroStrategy and the leading Ethereum reserve holder BitMine continued to buy Bitcoin and Ethereum, but there was also ETHZilla Corporation (stock symbol: ETHZ), which could no longer tolerate prolonged discounts (mNAV<1), selling Ethereum to conduct stock repurchases.

US Stocks' Three Major Indices Hit New Highs Simultaneously

The S&P 500 index rose 1.23%, as representatives from the US-China trade negotiations prepared for a series of diplomatic achievements to be announced at the Trump-Xi summit this week.

The easing of trade tensions boosted risk appetite, while US companies seemed unaffected by tariffs, protecting profit margins by raising prices and cutting costs. Sales of S&P 500 constituent companies hit a four-year high, and with expectations of further Federal Reserve rate cuts, these companies' profit prospects are becoming increasingly bright.

Alphabet, Amazon, Apple, Meta, and Microsoft will release their third-quarter earnings this week, and MicroStrategy will also announce its earnings after the US market close on 10/30.

Investors also expect the Federal Reserve to lower the benchmark interest rate on Wednesday, especially after the US Bureau of Labor Statistics released inflation data last week that was slightly below expectations. According to the CME FedWatch Tool, 97.8% of traders believe the Fed will cut rates by one code this week.

BTC Dropped Below 114K, ETH Remains Above 4,100 USD

The crypto market had already reacted in advance yesterday, with Bitcoin (BTC) surging to 116K at one point yesterday, and gradually dropping below 114K this morning. Ethereum (ETH) remained above 4,100 USD.

The total crypto market capitalization fell to 3.85 trillion USD, down 0.73% in 24 hours. However, market sentiment eased slightly, with the Fear and Greed Index rebounding to the neutral zone at 42, and Bitcoin dominance remaining at 59.1%.

DAT Rises Across the Board, ETHZ Sells Coins to Repurchase Shares

Digital Asset Treasury (DAT) companies rose across the board yesterday:

• MicroStrategy (MSTR): Up 2.27%

• Metaplanet (3350.T): Up 4.05%

• BitMine (BMNR): Up 6.55%

• SharpLink (SBET): Up 2.8%

• Forward Industries (FORD): Up 1.8%

• Upexi (UPXI): Up 0.61%

• DeFi Development (DFDV): Up 2.96%

The originator of the Bitcoin reserve strategy, MicroStrategy (originally named MicroStrategy), and the leading Ethereum reserve holder BitMine continued to buy Bitcoin and Ethereum. However, ETHZilla Corporation (stock symbol: ETHZ), which could no longer tolerate prolonged discounts (mNAV<1), after conducting a 1:10 reverse stock split, sold its Ethereum holdings to conduct stock repurchases, hoping to normalize the discount to net asset value. ETHZ surged 14% yesterday, but its subsequent developments are worth watching.

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