You are reading the weekly industry highlights report generated for you by Gate.io AI Lab. Get an overview of the most noteworthy market trends and important events from last week, and receive investment analysis and financial strategies recommendations.

Word count: 4313 words | Reading time 9.3 minutes.

Contents:

1. Market Trends {"sl":"Chinese Simplified","text":"2. 资金面、价格波动分析","tl":"English"}
2. Major events
3. Recent Hot Topics
4. Latest Developments in Global Policies and Regulations
5. Investment Analysis

1. Market Trends and Conditions

1.1. Market Sentiment

This week, the total market capitalization of digital money reached $2.32 trillion, a 4.06% decrease compared to the previous period. The trading volume on exchanges increased by 3.99% compared to the previous period, reaching $154.555 billion. The price of Bitcoin fluctuated around $62,741.00, with a weekly decline of 10.63%. The price of Ethereum was around $3,039.00, with a weekly decline of 13.54%.

According to Coinglass data, the total open position of Ethereum futures contracts on the entire network is 3,857,700 ETH (equivalent to $13.103 billion). The total market capitalization of stablecoins reached $154.555 billion, with a 2.73% increase in the past week. The market sentiment index is 55, in the neutral zone, but it has dropped compared to last week.

Overall, this week the market sentiment is cautious, with major cryptocurrencies experiencing a decline in prices. The investor sentiment index is in the neutral bearish range, reflecting market concerns about future trends.

1.2. Macro Economic Impacts

Recently, the uncertainty of the global economic situation and geopolitical situation has increased, putting certain pressure on the cryptocurrency market. The latest data from the United States shows that the year-on-year increase in CPI in March was 5%, which is lower than the expected 5.2%, but higher than the target level of 2%. The prices of new and used cars rose by 7.2% and 4.4% respectively compared to the previous year.

The annualized data for new housing starts in March was 14,200 households, which was lower than the expected 14,500 households. The number of initial jobless claims was 232,000, higher than the expected 198,000. The weak performance of the job market may affect the Fed's interest rate decision.

The US economic data is mixed, and the market expects the Federal Reserve to raise interest rates twice for the remaining time this year, with interest rates eventually reaching the range of 5.25%-5.5%. Inflation data has improved slightly but remains high, which may slow down the pace of the Federal Reserve's interest rate cuts.

Overall, the current macroeconomic situation has put some pressure on the cryptocurrency market. Investors need to closely follow the monetary policy direction of the Federal Reserve and changes in geopolitical situations.

2. Analysis of capital and price Fluctuation

2.1. Price Fluctuation Analysis

ETH's volatility this week is 4.21%. ETH's price has increased by 17.7% this week, reaching a high of $3950, mainly driven by the favorable news of the spot ETF approval. The trading volume has increased significantly, indicating an increase in market activity. High trading volume often indicates increased price fluctuations, and ETH's price may continue to rise in the future.

ETH exchange outflows have increased significantly this week, indicating investors' optimism about the future prospects of ETH. Institutional investors have been buying ETH in large quantities, and retail investors are also actively participating. Overall, ETH has been actively traded this week, and prices are expected to rise further.

2.2. Funding Analysis

This week, the net outflow of funds from BTC spot ETF was about $250 million, indicating that some investors have taken profit. However, BTC trading volume remains active, and the price is still trading above $65,000.

Meanwhile, a large amount of funds has flowed into the ETH spot ETF, and the exchange's ETH holdings have decreased. This indicates that institutional investors have confidence in the future market of ETH, and the ETH price is expected to further rise.

In general, the funding situation this week has shown a differentiated trend. Some funds have flowed out of BTC, while funds continue to flow into ETH. The market activity of ETH is higher than that of BTC, and the future upward momentum of ETH price may surpass BTC.

3. Main Events

The following is the Top 10 list of significant events that have had a major impact on the cryptocurrency market in the past week.

ETH Spot ETF Approved

The Securities and Exchange Commission (SEC) in the United States has officially approved several Ethereum spot ETF applications. This is seen as a significant endorsement for the cryptocurrency industry and is expected to pump Ethereum prices by about 75%. However, it should be noted that the issuer still needs to obtain SEC approval for the S-1 registration statement before trading can commence.

The US House of Representatives has passed the Financial Innovation and Technology Act of the 21st Century (FIT-21 Act), which clarifies the regulatory boundaries for cryptocurrencies and grants primary jurisdiction to the Commodity Futures Trading Commission (CFTC). This Act is expected to provide a secure and effective development path for blockchain projects in the United States.

Bitcoin's fourth halving completed.

Bitcoin's fourth halving was completed on April 16th, with the new coin reward reduced from 12.5 to 6.25. Halving is generally seen as favorable information for Bitcoin's long-term price, but it may cause fluctuations in the short term. Data shows that miners sold a large amount of Bitcoin before the halving, which may be one of the reasons for the price drop.

Shiba Inu raises $12 million

Shiba Inu raised $12 million through the sale of TREAT tokens to non-US residents, which will be used to develop a new privacy Layer 3 blockchain. This indicates that the Meme coin ecosystem is constantly growing and expanding.

Celestia encountered a significant adjustment

Celestia (TIA) has experienced a significant correction after reaching a historical high of $16, briefly dipping to $7.5. However, analysts remain optimistic about its long-term prospects, believing that it could rise to $70-130.

Galxe Token Symbol Migration Planned

Galxe official launches a proposal to convert the token symbol from GAL to G and exchange it at a ratio of 1:60. The news has driven the price of GAL to a big pump of 16.3%.

CoinShares: Digital asset investment products saw an outflow of $206 million last week

According to CoinShares data, the total outflow of digital asset investment products reached $206 million last week, with Bitcoin funds outflowing $192 million.

Hong Kong Securities and Futures Commission approves Spot BTC/ETH ETF

The Hong Kong Securities and Futures Commission has approved the listing of spot Bitcoin ETF and spot Ethereum ETF in Hong Kong, which is expected to encourage institutional investors to increase their exposure to cryptocurrencies.

ETC Group: Halving Impact May Take 100 Days to Manifest

ETC Group's research director stated that any positive effects related to the halving may take about 100 days to manifest after the halving occurs.

LightLink Airdrops to Mocaverse NFT holders

Ethereum Layer 2 network LightLink will airdrop LL tokens to Mocaverse NFT holders, with 1000 LL tokens per NFT.

4. Recent Hot Topics

Bitcoin Halving

Last Saturday, Bitcoin successfully completed the halving, and the market remained relatively stable. Some hot projects have pushed up BTC transaction fees, temporarily increasing miner income. Any positive effects related to the halving may take about 100 days to begin to appear after the halving occurs, as the supply shortage caused by Bitcoin halving will only accumulate over time.

US Encryption Regulatory Bill

The U.S. House of Representatives has passed the FIT21 encryption bill, aiming to establish a regulatory framework for digital assets and once again lead the trend in the United States. It has also passed a new bill involving the divestment of TikTok, which Elon Musk publicly opposed.

Cryptocurrency Market Analysis

Greeks.live analyst Adam said that there are few macro events and data this week, and the market is still taking cues from the US stock market. Risk assets may still experience significant fluctuations. In the outlook for the cryptocurrency options market, the implied volatility of Bitcoin is relatively stable, and Dvol remains high. The volatility expectations for this week are lower than the previous two weeks.

Thai Regulatory Encryption Platform

Thai authorities have decided to block "unauthorized" encryption platforms to improve law enforcement efficiency and address online crime issues. The Securities and Exchange Commission of Thailand has been requested to submit information on unauthorized digital asset service providers to the Ministry of Digital Economy and Society in order to block access to these platforms.

French Sovereign Rating

Morgan Stanley believes that the French government intends to reduce the deficit rate from 5.5% to 5.1% in 2024, which seems achievable. However, the deficit rate in 2025 is likely to be higher than the target. Fitch and Moody's will conduct sovereign rating assessments on France on April 26th, and S&P will conduct its assessment on May 31st. There is a greater risk of S&P downgrading France's rating.

5. Latest Developments in Global Policies and Regulations

Policy and Regulatory Updates:

• The U.S. House of Representatives passed the FIT21 Cryptocurrency Act, aimed at establishing a regulatory framework for cryptocurrencies.
• The bill prohibiting the issuance of CBDC by the Federal Reserve has been passed in the House of Representatives, limiting the development of central bank digital currencies.
• Consultation on the implementation of the OECD encryption report framework in the UK, which may affect the UK's encryption regulatory policy.

6. Investment Analysis

6.1. Investment Recommendation

The chart above shows the price trend of cryptocurrencies such as BTC, ETH, SOL, AVAX, and DOGE over the past 7 days. The price trends of ETH, SOL, AVAX, and DOGE are plotted on the left Y-axis, while the price trend of BTC is represented by a dashed line on the right Y-axis. From the chart, you can observe the fluctuation of prices for each cryptocurrency. Comparing the price changes of different currencies can help you understand market hotspots and trends.

Disclaimer: These suggestions are based on current market analysis and are not financial advice. Investing carries risks, please invest with caution.

6.2. Long-term Investment Strategy

Long-term investors can follow infrastructure and underlying technology projects, such as data availability and privacy computing. These technologies are expected to drive the development of Web3 with broad prospects. At the same time, paying attention to projects with practical application scenarios, such as GameFi and SocialFi, can help diversify investment risks.

Risk Warning: The cryptocurrency market is highly volatile, and investments should be made with caution. It is recommended to diversify investments, set stop-loss orders, and control risk exposure. Before long-term holding, thorough research on projects and understanding of risks are necessary.

6.3. Financial Investment Products

Yubibao is a product provided by Gate.io for earning interest on idle coins, supporting flexible deposits and compound interest. Its main features include: 1) users can customize the minimum lending interest rate; 2) lending success is determined every hour; 3) interest is earned once lending is successful. The total amount of USDT in Yubibao for investment is 1.172 billion USDT, with an estimated annual percentage rate of return of 7.60%+8.87%.

Main financial products of Yu'E Bao:

6.4. Risk Management Strategy

1. Set stop loss: It is recommended for customers to set reasonable stop loss points for each investment to limit potential losses. Stop loss points can be adjusted based on personal risk preferences and investment objectives.
2. Diversify Investments: Do not concentrate all funds in a single asset or portfolio. By diversifying investments across different types of assets and industries, overall risk can be effectively mitigated.
3. Regular Evaluation and Adjustment: It is recommended that clients regularly (such as every quarter or every half year) evaluate the performance of their investment portfolio and make necessary adjustments based on market changes and new investment opportunities. This helps to ensure that asset allocation remains in optimal condition.
4. Understand the risks: Before making any investment, it is important to fully understand the potential risks. Research the fundamentals of the project, team background, and roadmap to make informed decisions.
5. Maintain discipline: Develop and adhere to risk management strategies. Do not be driven by greed or fear, but instead maintain calmness and rationality.