AI Weekly Highlights Report (11.08 - 11.15)

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

Word Count: 8203 words | Reading Time: 11.1 minutes.

1. Market Trends

1.1. Market Sentiment

This week, the total market capitalization of Digital Money reached $2.9T, a decrease of 2.17% compared to the previous week. The exchange volume decreased by 23.72% to $234.75B. BTC's dominance decreased by 0.1% to 59.83% from the previous trading day. Popular coins in the Meme zone such as PEPE and POPCAT soared, with PEPE listed on a Korean exchange and its market capitalization surpassing $10 billion. Overall market sentiment is optimistic.

The fear and greed index today is 80, and the market sentiment is extremely greedy. Compared with yesterday, the index has slightly decreased, but the overall market sentiment is still extremely greedy, reflecting investors' optimistic sentiment about the current bull market.

Crypto & Tradition Overview as of 10pm UTC+8, Nov 15

1.2. Macroeconomic Impact

Recent data shows that the global economic recovery is slowing down, with sustained inflationary pressures. The US October CPI increased by 2.60% year-on-year, in line with expectations, but the core CPI increased by 3.30% year-on-year, higher than expected. The initial estimate for the Eurozone's October CPI was 0.80% on a monthly basis and 10.60% year-on-year, both higher than expected. The probability of a 25 basis point rate cut by the Fed in December is 67.30%, the highest probability scenario.

The Producer Price Index (PPI) and Consumer Price Index (CPI) interact with each other. PPIpump typically pushes up the CPI. The final value of October PPI in the United States increased by pump8.00% year-on-year, higher than the expected 7.70%. The monthly rate of PPI in the Eurozone in October was 1.60%, an increase of 34.50% year-on-year, both higher than expected. This suggests that the future CPI may further rise.

The Purchasing Managers' Index (PMI) is a leading economic indicator. The initial value of the US manufacturing PMI in November was 47.60, lower than the expected 49.80, and has been in the contraction zone for the third consecutive month. The initial value of the service industry PMI was 46.10, lower than the expected 49.70, indicating an economic slowdown. The initial value of the composite PMI for the Eurozone in November was 47.30, lower than the expected threshold of 50.00, with both manufacturing and services contracting.

Overall, high inflation and economic slowdown have exacerbated the challenges of monetary policy. The Federal Reserve may continue to raise interest rates to address inflation, but excessive tightening could trigger a recession. This will increase the volatility of the cryptocurrency market.

1.3 Economic Calendar

Analysis summary:

The final value of the University of Michigan Consumer Confidence Index and the number of initial jobless claims in November in the United States are the most important economic data this week. Consumer confidence reflects consumers' outlook on the economy and has a significant impact on consumer spending. The number of initial jobless claims reflects the employment market conditions and is an important indicator of economic health.
The initial value of the one-year inflation rate expectation and the Philadelphia Fed manufacturing index in November in the United States are also worth following. Inflation expectations have an important impact on the actual inflation level, while the manufacturing index reflects the state of manufacturing activity, indicating a rise in the economy.
Crude oil inventory data has a significant impact on oil price trends, so the U.S. EIA crude oil inventory and the Cushing crude oil inventory in Oklahoma are also important data.
The total number of new housing starts and construction permits reflects the real estate market conditions, which have certain indicative significance for related industries and the overall economy.
Although the NAHB Housing Market Index and Canadian Housing Starts have relatively low importance, they are also worth following as they reflect the development trends of the real estate market.

Overall, the economic data released this week mainly focused on employment, inflation, manufacturing, real estate, and oil, reflecting various aspects of the US economy, which are of significant reference value to investors and decision-makers.

2. Analysis of Fundamentals and Price Fluctuation

2.1. Price Fluctuation Analysis

BTC Weekly Volatility Based on the daily Closing Price of BTC in the past week, the weekly Fluctuation rate of BTC is approximately 18.6%. During this period, the price of BTC fluctuated significantly, ranging from $76,070 to $90,198.

Price fluctuations and reasons This week, the price of BTC fluctuated between $76,070 and $90,198. The price pump was mainly influenced by the Favourable Information of the US election results. The market sentiment was boosted by the expectation of encryption-friendly policies after Trump's election. In addition, the launch of spot ETFs has attracted more institutional funds to get on board.

Impact of volume changes A significant increase in volume is often accompanied by a significant Fluctuation in price. The average daily volume of BTC this week has risen by about 30% compared to last week, reflecting an increase in market activity. An increase in volume is beneficial for improving market Liquidity, but it may also exacerbate price Fluctuation.

Market activity and price direction From the rise in volume, the market activity has increased. However, the price falling from the high levels may imply pressure to take profits. The future price direction still needs to follow the changes in supply and demand.

2.2. Analysis of Funding Situation

According to the latest fund flow data, major cryptocurrencies such as Bitcoin and Ethereum have shown a strong influx of funds. Bitcoin has seen a net inflow of more than 820 million US dollars in the past two weeks, indicating significant involvement of institutional investors.

In terms of ETH funds flow, despite the recent Fluctuation, the overall net inflow status is still maintained. Data shows that on November 15th, the net inflow of funds into ETH exceeded 38 million US dollars in a single day, reflecting investors' long-term confidence in the ETH ecosystem.

In addition, some emerging public chains such as Solana have also seen varying degrees of capital inflows. This indicates that investors remain optimistic about the development prospects of the public chain ecosystem and are willing to lay out at the current stage. 01928374656574839201

Retail investors have shown a cautious and wait-and-see attitude recently. However, with the stabilization of the prices of Mainstream Tokens, retail investors are expected to gradually regain confidence and increase their investment efforts.

Overall, the current funding situation is good, and Mainstream Tokens' continuous capital inflow is expected to provide support for the future market trend. However, investors should also be alert to the uncertainty and risks in the market, and should proceed with caution in their operations.

2.3. Smart Money Analysis

BTC clever money trend
BTC big deal volume shows that institutional funds have been flowing in recently. CME futures Large Investors positions continue to increase, indicating that institutions have a bullish outlook on BTC. However, the dumping pressure from Miners and long-term holders is also increasing, which may offset the buying pressure from institutions to some extent.

ETH smart money trend Large ETH Trading Volume shows a net outflow, indicating that institutional funds are gradually withdrawing. However, ETH's contract open interest continues to rise, indicating that some institutions remain optimistic about the future of ETH. Overall, the selling pressure on ETH may be slightly greater than the support strength.

Smart Money Trends in Other Currencies
Except for BTC and ETH, the large ordersTrading Volume of other popular currencies are generally showing a net outflow, indicating that institutional funds are gradually withdrawing. This may increase the dumping pressure on these currencies and pose certain pressure on the future market trend.

Overall prediction From the flow of smart money, BTC may still maintain a pattern of oscillating upward in the future market, while ETH and other popular currencies may face some downward pressure. However, changes in market sentiment and fundamentals will also have a significant impact on PA, and investors need to remain cautious.

3. Hot Topics

According to the provided data, the most frequently discussed hot topic in the past week is Meme coin. Here is a mini-topic report about this hot topic:

MEME coin frenzy: Price surge or bubble about to burst?

Meme coin once again becomes the darling of the crypto market

In the past week, Meme coin has stirred up a new wave of frenzy in the crypto market. From the well-established DOGE, SHIB, PEPE, to the emerging PNUT, WIF, NEIRO, none has been spared from the madness of this Meme coin. Data shows that the Meme zone has surged by as much as 57% in the past 7 days, leading the entire market.

According to Coingecko's data, in the Meme zone, MOODENG, LUCE, and PEPE are leading the market with growth rates of 183%, 156%, and 130% respectively. Among them, PEPE's Market Cap has surpassed 10 billion US dollars, becoming the third Meme coin with a Market Cap exceeding 10 billion after DOGE and SHIB.

"PEPE listed on Binance and Coinbase will have a significant pump effect on the price," said a well-known trader. "PEPE has the opportunity to become the second mainstream Meme coin after DOGE, and the market sentiment is very optimistic."

AI+Solana+Meme, the 'ultimate' Meme coin trio

In the frenzy of this wave of Meme coins, the AI+Solana+Meme coin represented by GOAT is undoubtedly the most sustainable sub-sector. As a "trinity" coin that combines the hottest AI technology, high-performance public chain Solana, and Meme culture, GOAT's performance can be described as dazzling.

"GOAT is an open brand that anyone can contribute to, which will drive its continued development." A trader commented, based on the continuous growth of the GOAT community.

According to the data, since its launch, GOAT has attracted over 500,000 community users and has been among the most active in the Solana ecosystem. At the same time, GOAT's volume and market capitalization have been steadily increasing, attracting more and more investors to follow.

The "craze" of Meme coin stems from the values of the younger generation

There are some explanations from industry insiders for the frenzy of Meme coins. Some believe that the reason why Meme coins are so popular is that they can meet the values and spiritual appeals of the younger generation well.

"The younger generation disdains the grand narrative in terms of value standards. They tend to experience happiness in small certainties and use specific humor to confront abstract authority." As an analyst explained, "A meme can bring resonance, which is both seen and a victory in life for the younger generation. This victory has erupted with tremendous value in the blockchain world."

Bubble or Opportunity? There is still a huge controversy over the future of Meme coin

Despite the current popularity of Meme coins, there is still a huge divergence in the industry regarding their future prospects. Some pessimistic individuals believe that this frenzy surrounding Meme coins is nothing more than another bubble that will eventually burst.

"MEME coin does not apply its value from the perspective of utility and practicality, which is a narrow understanding of value itself," said a certain analyst, "The value of MEME coin lies in their ability to satisfy the spiritual needs of the younger generation, but whether this demand can continue remains to be seen."

But there are also optimists who believe that Meme coin represents a new set of values, and their future prospects are broad. "Meme coin is rooted in the spiritual aspirations of a younger generation and new value standards, and their development space is enormous," said a certain investor.

Regardless of the future of Meme coins, they have at least sparked a craze in the present. In this wave, caution and rationality may be the most valuable qualities.

4. Main Events

The following are the top 15 events that have had a significant impact on the cryptocurrency market in the past seven days:

#BTC breaks through $93000 On 2024-11-14, the price of BTC broke through $93,000, setting a new historical high. This is mainly driven by factors such as the expectation of favorable information on cryptocurrency regulation related to the results of the US presidential election, the continuous large inflow of funds into Spot ETF, etc. Analysts believe that strong demand and supply imbalance may breed bubble risks, and investors need to remain rational.

#Musk Leads New Institution On 2024-11-14, Trump announced that Musk and Ramaswamy will lead the newly established "Department of Government Efficiency" (DOGE). Upon the news, DOGE surged over 400%. However, some analysts believe that this agency may have a negative impact on shitcoin.

#18 states in the United States sue SEC On 2024-11-15, 18 states in the United States accused the SEC of unconstitutional overreach and unfair persecution of the Cryptocurrency industry under the leadership of Gary Gensler, and have applied to sue the SEC and its commissioners. This reflects a changing attitude of US regulators towards Crypto Assets.

#Ripple launches stablecoin On November 15, 2024, Ripple announced the upcoming launch of Ripple USD (RLUSD), a stablecoin designed for enterprise use cases. After the news was announced, XRP price pumped 16.41%.

#Hong Kong exchange launches virtual asset index On 2024-11-15, the Hong Kong exchange launched a series of virtual asset indices, providing a reliable price benchmark for the pricing of BTC and Ether in the Asian time zone, which is an important step for Hong Kong to build a leading digital asset center in Asia.

#BTCWhaleAddress activated On 2024-11-15, a dormant BTCWhaleAddress, which had been dormant for 14.3 years, was activated and transferred 2000 BTC, worth about 245 million US dollars, with a floating profit of about 20 times.

#Gala FilmissuanceFIL token On December 5th, 2024, Gala Film announced the issuance of FILM Token.

#Federal Reserve Chairman Powell Speech On 2024-11-15, Powell stated that it is too early to judge the impact of Trump's policies, and the Fed has time to assess the net effect of policy changes. He also emphasized the need for the Fed to maintain independence and has responded forcefully to inflation.

#Impact of the US Election on BTC Futures Contracts 2024-11-14 Bitcoin reached All-time high in the futures contract of Cryptocurrency exchange, which is related to the Favourable Information about the expected Cryptocurrency regulation due to the US election results.

#Tensor launches new platform 2024-11-15 Tensor launches Vector.fun, a new platform that combines social interaction with Token trading.

#Bluesky users surge After Trump won the presidential election on November 15, 2024, the number of visits to the United States reached 46.5 million, but Bluesky attracted about 1.2 million visitors.

#US Stocks Cryptocurrency Stocks Rally 2024-11-14 US stocks Cryptocurrency stocks rose after the opening, with MicroStrategy rising by more than 5%.

#Fed officials comment on inflation 2024-11-15 Federal Reserve officials said that PCE is expected to rise 2.3% year-on-year in October, and core PCE is expected to rise 2.8%, with the downward trajectory of inflation losing momentum.

#Fed interest rate pricing may move higher Analysts believe that Powell's speech conveys signals that the pricing of the Fed's interest rates is currently upward, as reflected in the CPI report.

5. Global Policies

According to the news from November 8th to November 15th, 2024, the following are the new political dynamics, economic policies and regulations related to the Cryptocurrency industry, as well as the analysis of their impact on the industry and the market:

1. Eighteen U.S. states sue the U.S. Securities and Exchange Commission (SEC)

Description: 18 US states have accused the SEC of unfair persecution and unconstitutional overreach in the cryptocurrency industry under the leadership of Gary Gensler. They have applied to sue the SEC and its commissioners, and detailed the "serious government overreach" committed by the agency that infringes on the regulatory and economic interests of each state.
Impact Analysis: This move reflects the dissatisfaction of the states with the SEC's regulation of the cryptocurrency industry, believing that the SEC has overstepped its authority and harmed the interests of the states. If the lawsuit is successful, it will limit the SEC's regulatory power over the cryptocurrency industry and create a more relaxed environment for industry development.

2. Trump considers appointing CFTC chairman who is friendly to Crypto Assets

Description: It is reported that President-elect Trump is considering appointing individuals who are friendly to Cryptocurrency as the Chairman of the Commodity Futures Trading Commission (CFTC).
Impact analysis: If Trump does appoint a close CFTC chairman, it will be beneficial for the cryptocurrency industry to obtain a more friendly regulatory environment and promote industry development.

3. Pennsylvania plans to use BTC as a reserve asset

Description: It is reported that Pennsylvania is considering adding BTC as one of its reserve assets.
Impact analysis: If Pennsylvania really includes BTC in its reserve assets, it will further enhance BTC's status and strengthen its recognition as a store of value, which is beneficial for attracting institutional investors.

4. US Senator Cynthia Lummis suggests selling Federal Reserve gold to buy BTC

Description: According to reports, US Senator Cynthia Lummis suggested that the Federal Reserve sell some of its gold reserves to buy BTC.
Impact analysis: Although this proposal appears difficult to implement at present, it reflects the recognition of BTC by some political figures. If the Federal Reserve really buys BTC, it will greatly boost the status of BTC and encourage institutional investors to increase their positions.

Summary:

The recent policies and regulations related to the cryptocurrency industry mainly include:

18 states in the United States sue the SEC, accusing it of overreach and unfair persecution of the cryptocurrency industry.
Trump considers appointing a CFTC chairman who is friendly to Cryptocurrency.
Pennsylvania plans to use BTC as a reserve asset.
U.S. Senator Cynthia Lummis suggested that the Federal Reserve sell gold to buy BTC.

Overall, these policies and regulations reflect the supportive attitude of some regions and political figures towards the Crypto Assets industry, which is conducive to creating a more relaxed and friendly environment for the industry's development. However, the SEC being sued also reflects the disagreement between regulatory authorities and the industry, and there is still uncertainty in the industry's regulatory prospects.

6. Investment Analysis

6.1. Investment Recommendation

Disclaimer: The above suggestions are based on current market analysis and are not financial advice. Investment carries risks, so please enter the market cautiously.

6.2 Investment Strategy

This week's hot Token Technical Analysis

After BTC broke the historical high of $92,000, it experienced a pullback, but indicators such as MVRV Z-score and Puell multiple suggest that there is still room for further upside. ETH Whale activity has surged, but RSI suggests a possible short-term pullback. Shiba Inu's burn rate has dropped by 82%, but the community still has expectations for the historical high of $0.00008. Be cautious of profit-taking risks as the PEPERelative Strength Index flashes reversal signals.

Quantitative Strategy Summary

Quantitative strategies performed well this week, especially grid strategy and Martingale strategy. Contract grid strategy achieved considerable profits in high Fluctuation varieties such as MOG_USDT, MEW_USDT, with a maximum Annual Percentage Rate of 96578.84%. Spot Martingale strategy also performed well in JASMY_USDT, ZK_USDT, with a maximum Annual Percentage Rate of 29511.04%.

Quantitative Strategy Introduction

Contract grid strategy profits from high-frequency trading in oscillating markets by setting grid buy and sell prices, suitable for high-risk preference. The spot Martingale strategy profits from gradually increasing positions in trending markets, with controlled risk. The intelligent rebalancing strategy automatically adjusts the Position weights of different currencies based on quantitative models, with moderate profit and risk.

6.3. Financial Management Products

Simple Earn Interest compound interest Total Funds (USDT): 1.111 billion USDT near 7 days Annual Percentage Rate:4.36%+8.87%

Financial Management Treasure The first income starts here! Low threshold, high security, high yield.

Structured Financial Products New financial products that combine fixed income with Options and other financial derivatives

4.市场Intrerest Rate

Note:

TradFi is the Intrerest Rate data of the TradFi market.
DeFi is the fund Intrerest Rate range of Decentralization financial platform.
The Intrerest Rate data is from mainstream exchange and analysis platforms, and may have some latency, for reference only.

Disclaimer: The content of this interest rate report is for reference only and does not constitute investment advice. Investors enter the market at their own risk based on this information.

6.4. Bollinger Band Trading Strategy Analysis

Bollinger Bands is a commonly used technical indicator that identifies potential Overbought or Oversold conditions through the standard deviation of prices. This analysis adopts the following trading strategy:

When the ETH price approaches or breaks through the upper band, sell with a Position of 20%;
When the ETH price approaches or breaks below the lower track, take a buy action, Position is 20%;
The initial principal is 100,000 USDT.

Backtest the historical data of ETH according to this trading strategy, and the backtest result is as follows:

Final Yield: 36.72%
Maximum Drawdown Rate: 21.35%
Annualized Volatility: 48.26%

Data Analysis:

This strategy performs well in the Bull Market and is able to effectively capture price pump trends;
But in the volatile Fluctuation oscillating market, it is easy to be frequently touched by the upper and lower rails, resulting in too many trading times and higher commission costs;
The maximum drawdown rate is relatively high, with a greater risk of loss in the Bear Market;
Annualized Volatility is high, and the overall strategy carries a greater risk.

Summary:

Bollinger Band trading strategy is simple to operate and can capture price trends well, but it is prone to frequent touches of the upper and lower bands in volatile markets, resulting in excessive trading frequency. In addition, this strategy carries higher risks and is more likely to incur losses in a Bear Market. Therefore, it is necessary to combine other technical indicators and Fundamental Analysis, and strictly control risks, adjusting Position ratios appropriately.