AI Weekly Highlights Report (11.15 - 11.22)

You are reading the weekly industry hot spot report generated for you by Gate AI Lab. Get a glimpse of the most worthy market trends and important events to follow last week, and receive investment analysis and financial strategies recommendations.

Word count: 8530 characters | Reading time 11.5 minutes.

1. Market Trend

1.1. Market Sentiment

This week, the total market capitalization of Digital Money reached $3.25T, up 4.08% from the previous week. The exchange volume rose by 40.18% to $248.63B. BTC dominance decreased by 0.37% compared to the previous trading day, accounting for 59.66%. The overall market showed a pump trend, and trading activity significantly increased. The BTC price continued to rise, while its dominance slightly decreased.

According to the Gate.io Fear & Greed Index, today's market sentiment is extremely greedy, with a Fear & Greed Index of 94, indicating that the market sentiment is overly optimistic and investors may face higher risks.

Crypto & Tradition Overview as of 09am UTC+8, Nov 22

1.2. Macroeconomic Impact

Recent data shows that the global economic recovery is slowing down and inflation pressure remains. In October, the Eurozone CPI rose by 10.6% pump on a year-on-year basis, higher than the expected 10.4%, setting a new record. In November, the US CPI rose by 7.7% pump compared to the same period last year, higher than the expected 7.3%. The core CPI rose by 6.3% pump compared to the same period last year, higher than the expected 6.1%. The probability of a 25 basis point interest rate cut by the Federal Reserve in December is 55.9%, while the probability of maintaining the interest rate unchanged is 44.1%.

Producer Price Index (PPI) and Consumer Price Index (CPI) are interrelated. In October, the Eurozone's PPI rose by 34.5% year-on-year, reaching a record high, and is expected to further boost the CPI. In November, the US PPI rose by 7.4% year-on-year, slightly below the expected 7.9%, but still at a high level.

The Purchasing Managers' Index (PMI) is a leading indicator of macroeconomic conditions. The preliminary manufacturing PMI for the Eurozone in November was 47.3, lower than the expected 46.0, marking the fifth consecutive month of contraction. The final manufacturing PMI for the United States in November was 47.6, lower than the expected 50.0, indicating continued contraction in the manufacturing sector.

Overall, the macro situation of high inflation and economic slowdown puts pressure on the Cryptocurrency market. Tightening monetary policy and declining risk appetite will both suppress Cryptocurrency prices pumping. However, Cryptocurrency's property as an inflation-resistant asset may also be favored.

1.3 Financial Calendar

Analysis summary:

This week's focus will be on following the revised third-quarter GDP and the annual core PCE price index from the United States, reflecting the rise and inflation situation of the economy. In addition, the initial value of the euro area's CPI annual rate for November will also be announced, and investors will closely follow the inflation trend. Other data worth following include the total number of new home sales in the United States for October, consumer confidence index, reflecting the real estate market and consumer sentiment. Overall, the economic data released this week will provide investors with valuable clues to judge the pace of Fed rate hikes and the global economic outlook.

2. Analysis of Funding, Price Fluctuation

2.1. Price Fluctuation Analysis

BTC weekly Volatility
According to the daily Closing Price of BTC in the past week, the Volatility of BTC this week is 2.34%.

Price fluctuations and reasons This week, the price of BTC pumped by 4.21%, mainly because institutional investors bought a large amount through the US Spot ETF, which increased market demand. At the same time, the behavior of long-term holders taking profits also exacerbated the price pump.

Impact of volume changes The volume has increased in the past week, reflecting an increase in market activity. The increase in volume provides Liquiditysupport for price pump, while also indicating potential upward momentum.

Market Activity and Price Direction Overall, the market activity was high this week, with an increase in volume and price pump, reflecting a relatively optimistic market sentiment. However, we also need to be alert to the selling pressure impact brought by long-term holder profit-taking. In the short term, if institutional demand continues, the price may continue to rise; but if the selling pressure is too great, it may also trigger a pullback.

The above analysis is for reference only and does not constitute investment advice. The cryptocurrency market is subject to severe fluctuations, so investment should be cautious.

2.2. Analysis of Funding Situation

According to the latest data, BTC and Ethereum attracted a large inflow of funds. In the past 30 days, the BTC and Ethereum networks have absorbed $53.3 billion in funds. Meanwhile, the Stablecoin supply increased by $9.6 billion. This reflects a restored confidence from investors in the Crypto Assets market.

The balance of Stable Coin on the exchange has increased significantly, reflecting strong speculative demand from investors. This further reinforces the bullish expectations and the market's pump momentum. The profit-taking behavior of long-term holders has increased, but has not yet reached historical highs.

The demand from institutional investors is the main driving force behind this Bull Market. The US Spot ETF plays a key role in absorbing the dumping pressure from long-term holders. The importance of ETF in maintaining market Liquidity and stability is increasing day by day.

Overall, the analysis of the funding situation shows a high level of market activity and optimistic investor sentiment. However, the pressure of profit-taking from long-term holders is also increasing, and the future market supply and demand balance may be tested.

2.3. Smart Money Analysis

The flow of smart money often predicts the market trend. By analyzing the changes in large orders and trading volume, we can gain insights into the movements of institutional investors.

BTC(BTC)
In recent weeks, BTCSpotETF has attracted a large amount of funds, with weekly inflows reaching up to $1-2 billion. This indicates strong demand from institutional investors for BTC, supporting the pump in BTC price. However, the dumping pressure from long-term holders is also increasing, which may surpass the inflow of ETF in the future.

Ether Square(ETH)
The ETH/BTC price ratio of Ethereum has fallen to the lowest point since March 2021 at 0.032, reflecting relatively weak demand from institutional investors for Ethereum. Nevertheless, the upcoming Shanghai upgrade of Ethereum may attract more inflow of funds.

Overall, the long positions pattern of BTC remains relatively stable, but the dumping pressure from long-term holders cannot be ignored. Ethereum is facing some resistance and needs to wait for its performance after the Shanghai upgrade. Investors should closely follow the changes in large-volume transactions to grasp the pulse of the market.

3. Hot Topics

According to the data provided, the most frequently discussed hot topic in the past week is "Meme Coin". Here is a mini special report on this hot topic:

🔥Memes coin crazy outbreak, a new round of 'harvest season' in the crypto world is coming?🔥

The price of memes has soared, kicking off a new round of the 'harvest season' in the crypto world?

In the past week, "Meme coins" have become a hot topic in the cryptocurrency market. Data shows that the prices of various meme coins, including Peanut the Squirrel (PNUT), Just a chill guy (CHILLGUY), Kitten Haimer (KHAI), etc., have experienced a crazy surge.

Just last week, PNUT had a big pump of more than 348 times within a few days after its listing, which caused widespread follow. According to analysts' views, Whales with insider information made profits of over $10 million on PNUT. This typical 'pump' behavior has once again sparked discussions in the crypto world about meme coins.

At the same time, the image author @PhillipBankss of CHILLGUY issued a deletion notice, claiming to have officially registered the copyright of CHILLGUY, and will take legal action against unauthorized profit-related content. Once the news came out, CHILLGUY briefly dropped by more than 55%, but then quickly rebounded, causing a sharp market fluctuation.

The price of another Meme coin, Kitten Haimer (KHAI), has also skyrocketed by 13.32% in the past week. On Vietnamese Twitter, there were 43 tweets in favor of KHAI, believing it to be "one of the most promising Meme coins", and it is expected that KHAI will have a chance of a huge increase in the future.

**Big shot Wu in the crypto world bluntly said, "This is a typical 'harvest season,' and the soaring price of memes is purely speculative manipulation, often manipulated by institutions behind the scenes."

Is Meme Coin a "Value Oasis" or a "Trap"?

There has always been a big divide in the industry over the value of memes. Supporters believe that memes have a certain cultural symbolic value, representing the rebellious spirit and pursuit of Decentralization of the younger generation.

For example, well-known trader Jordan Fish said, "Shitcoin (DOGE) has become the interstellar digital gold, and its value will surpass traditional gold, possibly reaching $4-9 million in the future."

But there are also many doubts. Mr. Zhang, a cryptocurrency analyst in Hong Kong, bluntly stated, "Meme coins themselves have no practical use and are purely speculative. Their price surge is entirely due to speculation and chase rising prices, and it is very easy to 'go to zero' in a short period of time."

In fact, there have been many cases in history of Meme coins experiencing sharp rises and falls in a short period of time. For example, the "dogshitcoin clone craze" in 2021, when hundreds of "dogshitcoin" knockoffs appeared, but almost all of them eventually dropped to zero.

Regulatory efforts may intensify, memes' prospects are uncertain

In addition to its inherent high risk, the uncertainty of regulatory policies has added variables to the development prospects of memes.

U.S. Senator Lummis has recently stated that she is pushing for a Cryptocurrency regulatory bill, expected to be advanced in early 2025. Once passed, the issuance and trading of high-risk Tokens such as Meme coins will be subject to stricter regulation.

Meanwhile, some countries and regions in Asia are also increasing their regulatory efforts on memes. For example, the Monetary Authority of Singapore recently issued a directive to prohibit cryptocurrency advertisements, including memes.

**Crypto world analyst Mr. Zhang believes: "With increasingly strict regulations, the 'crazy era' of memes may be coming to an end. In the future, their survival space will become smaller and smaller."

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:

2024-11-22 SEC Chairman Resigns BlockBeats news, on November 22, according to official sources, SEC Chairman Gensler will resign on January 20. Gensler actively promoted cryptocurrency regulation during his tenure, and his resignation may affect the direction of future regulatory policies.

2024-11-22 Trump Cryptocurrency Team Expected to Establish BTC Reserve BlockBeats news, on November 22, the Trump cryptocurrency team is expected to establish a BTC reserve. This move will further promote the application of BTC in the political and financial fields, and is expected to boost the price of BTC.

2024-11-22 SEC is required to withdraw broker rules against Decentralized Finance trading platform BlockBeats News, on November 22nd, according to documents, the US SEC was required to withdraw the broker rule against Decentralized Finance trading platforms and its use as the basis for ConsenSys' lawsuit. This may affect the SEC's regulatory position on Decentralized Finance projects.

On 2024-11-21, US regulatory agencies issued final rules to regulate electronic Wallets of large technology companies The Golden Finance reported that the Consumer Financial Protection Bureau (CFPB) finalized a rule on November 21 to regulate large non-bank companies providing digital fund transfer and payment Wallet applications. This will strengthen the regulation of electronic Wallets for technology companies.

2024-11-21 US Prosecutor Accuses Hacker Group of Stealing at Least $11 Million in Cryptocurrency US prosecutors accuse five members of "Scattered Spider" of stealing at least $11 million in Cryptocurrency through Hacker attacks, highlighting the severity of the encryption issue.

2024-11-21 Elon Musk released the banana emoticon Odaily Planet Daily News Elon Musk retweeted "Elon is the undisputed meme king. 🍌" and replied: "🍌 for". This may be related to Musk's purchase of banana art, triggering a brief surge in BAN Token.

On November 21, 2024, BTC mining company HIVE Digital purchased 5,000 Avalon Mining Rigs Odaily Planet Daily News, BTC mining company HIVE Digital announced the purchase of 5000 units of Avalon A15-194T ASIC Mining Rig from Canaan Inc. This reflects the mining company's optimistic outlook on the future of BTC mining.

2024-11-21 Galaxy CEO: BTC breaking $100,000 is "inevitable" but there may be a pullback Galaxy Digital CEO Michael Novogratz said that BTC is expected to break $100,000 after the U.S. election, but there will be a pullback. This reflects institutional optimism about the long-term prospects of BTC.

On 2024-11-21, a trader purchased Quant and LETHIMCOOK due to fear of missing out and lost more than $160,000 in two days A trader lost over $160,000 in just two days due to the fear of missing out on Cryptocurrency Speculation by buying Quant and LETHIMCOOK. This serves as a warning for investors to approach the market rationally and avoid blindly following trends.

On 2024-11-21, a US listed company approved the purchase of Crypto Assets as reserve assets Steakholder Foods has decided to purchase up to $1 million worth of Bitcoin or track the index of cryptocurrencies as a strong financial reserve asset. This reflects the increasing recognition of cryptocurrencies by traditional companies.

2024-11-20 Cryptocurrency trading identity tracking new regulations accelerate exit from FATF gray list South Africa requires digital asset trading platforms to collect and store the full names and WalletAddress of both parties in a transaction, in order to comply with FATF's "travel rule" to prevent encryption assets from being used for illegal activities. This helps with cryptocurrency anti-regulation.

On November 20, 2024, Musk and Vivek outlined the Efficiency Department's plan for the government. Members of the Trump Administration Efficiency Department (DOGE) new advisory group, Elon Musk and Vivek Ramaswamy, stated that they plan to reduce federal agency spending and hire a team of small government reformers to work with the Trump administration. This could impact the future trend of DOGE Token.

How to view the market after BTC hits a new high again on 2024-11-20? The audience at AIBC/SIGMA responded enthusiastically, triggering multiple business discussions about the future of Crypto Assets. Against the backdrop of high market interest, Mr. Cunti's views further demonstrated the huge potential for industry development in the coming months.

2024-11-20 Surge in Cardano holdings by 297% indicates that ADA prices may pump again In the past few weeks, there has been a surge in transaction activity on the Cardano blockchain, and the price data reflects this trend. ADA has surpassed its March high of $0.77, currently trading at the highest point since 2024. This indicates a bullish sentiment in the market towards Cardano.

5. Global Policy

The following is a list of new political dynamics, economic policies, and regulations related to the cryptocurrency industry, as well as an analysis of their impact on the industry and the market, according to news from November 15th to 22nd, 2024:

1. U.S. SEC Chairman Gensler will step down on January 20, 2025

According to official sources, Gary Gensler, Chairman of the United States Securities and Exchange Commission (SEC), will step down on January 20, 2025. During his tenure, Gensler took a tough regulatory stance on the Crypto Assets industry, repeatedly stating that most Crypto Assets should be considered as securities and calling for stricter regulation of Crypto Assets exchanges and issuers. His departure may alleviate regulatory pressure on the Crypto Assets industry by the SEC.

2. US regulatory agencies issue final rules to regulate electronic Wallets of large tech companies

The Consumer Financial Protection Bureau (CFPB) has issued a final rule to regulate large non-bank companies that provide digital fund transfer and payment Wallet applications. This rule aims to ensure that these companies comply with federal laws and are subject to the same regulations as banks and other financial institutions. This rule may affect the operation of Cryptocurrency Wallet and payment applications.

3. The U.S. Financial Industry Regulatory Authority Adds Cryptocurrency Zone

The Financial Industry Regulatory Authority (FINRA) has added a zone on its website about Crypto Assets, outlining various types of encryption assets, buying and selling methods, and risks. Although encryption assets are not explicitly considered securities, this move indicates that regulatory agencies are strengthening their follow-up on the Crypto Assets industry.

4. South Africa Releases New Regulations for Tracking Identities in Cryptocurrency Transactions

South Africa requires digital asset trading platforms to collect and store the full names and Wallet Addresses of both parties to comply with the Financial Action Task Force's "travel rule" and prevent encryption assets from being used for illegal activities. This regulation will take effect on April 30, 2025, and applies to all transactions valued at less than $277. This regulation helps strengthen anti-money laundering regulation but may also increase the burden on ordinary users.

Summary

The above policies and regulations reflect the regulatory authorities' strengthening of the regulation of the cryptocurrency industry, especially in the areas of anti-money laundering, consumer protection, and securities regulation. These measures aim to maintain the stability and transparency of the financial system, but they may also increase the compliance costs and operational pressures for cryptocurrency companies. Industry participants need to closely follow regulatory developments and take necessary compliance measures to adapt to the constantly changing regulatory environment.

6. Investment Analysis

6.1. Investment Recommendation

Disclaimer: The above advice is based solely on current market analysis and is not financial advice. Investment is risky and caution is advised when entering the market.

6.2 Investment Strategy

T (T) Technical Analysis

T has performed strongly in the past 24 hours, breaking through the $0.005500 mark, with a significant increase in volume. The MACD indicator is opening upwards, and the KDJ indicator is showing a strong pump momentum at the low level. At the same time, the dominance of BTC has declined, which is favorable for AltCoin to gain more follow. Therefore, T is expected to continue the pump trend in the short term.

Quantitative Strategy Summary for this Week

The data of the trading robots this week shows that the contract grid strategy and Spot Martin Gale strategy have performed well. The contract grid strategy has achieved considerable profits in high Fluctuation markets through high-frequency trading and strict risk control. The Spot Martin Gale strategy fully utilizes the repeated Fluctuation of coin prices through dynamic scaling.

Summary

The market was active this week, and the trading robots performed well. The high-risk, high-return contract grid and Spot Martingale strategy have made substantial profits in the Fluctuation market, thanks to good take profit and stop loss management. Relatively speaking, strategies with lower risks such as smart reallocation and infinite grid have relatively limited returns. Investors can choose a suitable quantitative trading strategy based on their own risk preferences.

6.3. Financial and wealth management products

Simple Earn

Simple Earn helps match users with idle assets and borrowing needs. After purchasing Simple Earn, the system will determine whether the borrowing is successful and the Intrerest Rate for that hour based on the user's set Intrerest Rate and actual borrowing needs every hour. Successful borrowing can earn Interest for that hour. Simple Earn supports user-defined Intrerest Rates, and users can set the minimum borrowing Intrerest Rate when purchasing. After successful borrowing is determined for each hour, the earnings are calculated based on the determined Intrerest Rate.

Simple Earn Total (USDT): 350,193,997.59 USDT近7天Annual Percentage Rate: 16.65% + 8.87%

Financial Treasure

Wealth Management Treasure is a one-stop comprehensive wealth management service center established by Gate.io Finance, including current, fixed-term, and all other wealth management plans, providing users with hundreds of types of Digital Money financial products.

Structured Financial Products

Gate.io structured financial management is a new financial product based on a combination of fixed income and financial derivatives such as Options. Generally, it determines the level of Settlement income based on the comparison between the performance of the underlying asset and the specified linked price during the investment period, and can be divided into two types: principal-guaranteed and aggressive.

4.市场Intrerest Rate

Annotation:

TradFi is the abbreviation for Traditional Finance, which refers to the Interbank Interest Rate.
CeFi is an abbreviation for Centralized, which refers to the range of funding and financing Interest Rate for centralized cryptocurrency financial platforms.
DeFi is the abbreviation of Decentralized Finance, which refers to the funding and financing Interest Rate range of decentralized lending platforms.

Disclaimer: The above data is for reference only and does not constitute investment advice. Investment involves risks, and caution should be exercised when entering the market.

6.4. Technical Analysis

Bollinger Band Trading Strategy Backtest

Bollinger Bands is a commonly used technical indicator that identifies potential Overbought or Oversold conditions based on the standard deviation of prices. The backtest this time adopts the following trading strategy:

When the ETH price approaches or breaks through the upper rail, take a selling action, Position is 20%;
When the ETH price approaches or breaks below the lower band, take a buy action, Position is 20%;
The initial capital is 100,000 USDT.

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

Final yield: 32.17%
Maximum Drawdown: -18.35%
Annualized Volatility: 28.64%

Backtesting Data Analysis:

In terms of returns, the strategy achieved a positive return of 32.17% during the backtesting period, performing quite well.
The maximum drawdown rate is -18.35%, the drawdown amplitude is controllable, and the risk is within an acceptable range.
The annualized Volatility is 28.64%, which indicates high volatility and difficulty in operation.

Advantages:

As a technical indicator, Bollinger Bands can effectively capture OverboughtOversold signals in prices.
Position control at 20%, risk manageable.
Achieved good positive returns during the backtesting period.

Disadvantages:

High volatility and difficulty in operation require strong psychological resilience.
There is limited profit potential and risk.
Relying solely on technical indicators for trading may overlook other important factors such as fundamentals.

Overall, the Bollinger Band trading strategy performed relatively well during the backtesting period, but it also has certain deficiencies and risks. In actual operation, it is necessary to combine other analysis tools and trading strategies, and adjust and optimize according to the actual market conditions.