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You are reading the weekly industry highlights report generated for you by Gate.io AI Lab. Get a glimpse of the market trends and important events worth following this week, and receive investment analysis and financial strategies recommended for you.

Word Count: 11303 Characters | Reading Time: 19.1 Minutes.

Table of Contents:

1. Market trends
2. Fundamentals, price Fluctuation analysis
3. Hot Topics
4. Main Events
5. Global Policies
6. Investment Analysis

1. Market Overview

1.1. Market Sentiment

This week, the total Market Cap of Digital Money reached $2.18 trillion, with a rise of 1.39% compared to the previous period. The exchange volume rose by 3.21% compared to the previous period, reaching $1.02 trillion. BTC price fluctuated around $64,000, showing a Sideways trend overall. ETH price is running above $1,800 with active trading.

Today's market sentiment is greedy, with a fear and greed index of 60, indicating an overall optimistic market sentiment.

Crypto & Tradition Overview as of 10am UTC+8, Jul 19

1.2. Macroeconomic Impact

Recent data suggest that the pace of the global economic recovery has slowed and inflationary pressures persist. Eurozone CPI pumped 5.5% year-on-year in June, higher than expectations of 5.1% and the highest since records began in 1985. United States CPI pumped 3.0% year-on-year in June, in line with expectations but still at a high level. The Fed will hold its Intrerest Rate decision meeting at the end of July, and the market expects the Fed to raise interest rates by another 25 basis points, with a 70.2% probability that the Intrerest Rate range will reach 5.25%-5.50%.

Producer Price Index (PPI) and Consumer Price Index (CPI) remain high, reflecting sustained inflationary pressure. Eurozone's PPI rose by 25.6% year-on-year, hitting a historical high in June. The US PPI increased by 0.1% in June, lower than the expected 0.2%, but still at a high level. Purchasing Managers' Index (PMI) indicates a slowdown in economic activity. In June, Eurozone's Manufacturing PMI stood at 43.4, marking the sixth consecutive month in contraction territory. The US Manufacturing PMI for June was 46.0, also below the 50 threshold indicating contraction.

Overall, high inflation will force major Central Banks to continue raising interest rates to control inflation expectations. However, excessive rate hikes may pose the risk of a hard landing for the economy. The Cryptocurrency market may continue to experience fluctuations in the short term due to macroeconomic conditions.

1.3 Economic Calendar

Analysis and Summary:

The Richard Manufacturing Index, released on July 24, reflects the state of the manufacturing industry. Last month's data was -7.0, indicating that the manufacturing industry is in a contraction phase. If this month's data continues to be weak, it will increase the risk of an economic recession. 2. The US June new home sales annualized data announced on July 25th is an important indicator of the real estate market conditions. It is expected to decline slightly to around 670,000 households. If the data is significantly lower than expected, it will intensify concerns about the economic outlook. 3. The annualized seasonally adjusted data for US GDP in the second quarter announced on July 26th and the annual core PCE price index data are extremely important, and will directly influence the Fed's monetary policy orientation. The market expects the annual GDP rate to fall to around 1.8%, and the annual core PCE price index to decrease slightly to 4.6%. If the actual data is lower than expected, it will increase the possibility of a Fed rate cut in September.

Overall, the macroeconomic data released this week will provide important reference for the decision of the Federal Reserve's September policy meeting. The market will closely follow the changes in data in areas such as GDP, inflation, and manufacturing to assess the actual economic fundamentals.

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 Volatility of BTC is 2.35%.

Price Fluctuation Analysis This week, the price of BTC fluctuated within the range of $63,000 to $65,000. The price pump was mainly driven by continued buying from institutional investors and the approval of the ETH spot ETF, which brought favorable information. However, the distribution of compensation to Mt. Gox creditors also brought certain selling pressure.

volume Impact The average daily volume of BTC this week is about $5 billion, an increase from last week. The increase in trading activity reflects the market's divergent sentiment, with some investors taking advantage of the opportunity to profit and others continuing to go long.

Market activity and price direction Despite the increase in volume, the price is still hovering within a range. Market participants have different opinions on the future, waiting for further Favourable Information or Unfavourable Information to emerge. If BTC can effectively break through the $65,000 barrier, it will open up room for further pump.

2.2. Analysis of Financial Position

According to the latest fund flow data, we can see that there are some differences in the inflow and outflow of major cryptocurrencies. BTC and Ethereum, as the leaders in the cryptocurrency market, are worth paying special attention to their fund flow situation.

BTC Funds Flow Data shows that the net inflow of funds into BTC was approximately 960 million US dollars last week. This indicates that institutional investors and Large Investors may be accumulating at the lows and increasing their BTC positions. However, at the same time, the outflow of funds from retail investors has also increased, reflecting some investors' concerns about the recent price Fluctuation.

ETH Fund Flow On the ETH front, the net inflow of funds is about $516 million. In contrast, the outflow of funds from retail investors is relatively small. This may indicate that institutional investors are optimistic about the long-term prospects of Ethereum and are buying the dips when the price pulls back.

Other Cryptocurrency In addition to the flow of funds for BTC and ETH, the flow of funds for other cryptocurrencies is also worth following. For example, the significant net inflows of funds for tokens such as MATIC, FTM, and NOT reflect investors' positive expectations for these tokens.

Overall, despite recent Fluctuation in the Cryptocurrency market, the net inflow of funds from institutional investors and Large Investors remains relatively strong. This may indicate an increase in market activity and a potential Rebound in prices. However, investors still need to closely follow market trends.

2.3. Smart Money Analysis

The flow of clever money often predicts market trends. By analyzing the changes in large orders and trading volume, we can observe the movements of institutional investors.

BTC In recent weeks, the large single transaction volume of BTC has increased, indicating that institutional investors are gradually Building a Position. This means that the support strength of BTC may be enhanced in the future.

ETH Similar to BTC, ETH's large orders Trading Volume is also on the rise, indicating that institutional investors are increasing their holdings of ETH. However, the selling pressure on ETH has also increased, and some volatility is expected in the future.

AltCoin Overall, the Trading Volume of AltCoins' large orders is relatively low, reflecting a lack of interest from institutional investors. However, there has been an increase in the Trading Volume of certain popular AltCoins' large orders.

Overall, institutional investors are gradually increasing their positions in mainstream currencies, and it is expected that mainstream currencies will remain strong in the future. However, it is also necessary to be cautious about the increase in selling pressure.

3. Hot Topics

Solana: The Next ETF? The innovation of public chain technology may have become widely Consensus

Recently, the Crypto market has caused panic among investors due to the Mtgox compensation and the selling off of governments in the United States and Germany. The vast majority of Tokens have experienced a decline of more than 20%, but there are also some Tokens that are relatively "resilient" in price, and SOL is one of them. Solana, as a public chain project, adopts a Consensus Mechanism that combines delegation Proof of Stake (PoS) and Proof of History (PoH). It introduces the Timestamp mechanism and uses multi-threaded parallel processing and state compression technology to enable Solana to have the advantages of high throughput and low Transaction Cost. Solana has successively released three innovative technologies, Actions, Blinks, and ZK Compression, expanding into the field of SocialFi and significantly compressing the existing Transaction Cost. These three new technologies will boost Solana's future development and bring new expectations to the market. In addition, with the application for spot ETF, Solana's future expectations and narratives are full of imagination and potential, which is further enhanced.

Actions, Blinks, and ZK Compression successively released articles. Is Solana becoming a leader in L1 technology innovation?

Solana breaks through the limits of the ecosystem and leads the wave of Web3 innovation

The Solana ecosystem is currently in a rapid development stage, with innovative applications emerging like bamboo shoots after a spring rain. Among them, Actions, Blinks, and ZK Compression, three disruptive technologies, are particularly noteworthy, and can be called the "three treasures" of the Solana ecosystem's new era.

Actions is a revolutionary API that allows websites to seamlessly integrate with the Solana blockchain, making on-chain activities easily accessible. This not only greatly enhances the convenience of Solana application development and user transactions, but also injects powerful momentum into the efficient execution of on-chain smart contracts, and lays a solid foundation for Solana's entry into the SocialFi field.

Blinks is a new primitive that transforms on-chain operations into shareable links, which can convert any Solana Actions into spreadable links rich in metadata. This not only greatly enhances user experience, but also effectively increases Solana's traffic and significantly lowers the barrier for users to participate in Web3.

ZK Compression, as a compression technology built on Solana, can help developers and users build applications on a large scale. It reduces the system state cost by orders of magnitude while maintaining Solana's excellent security, outstanding performance, and strong composability, injecting tremendous power into the vibrant development of the Solana ecosystem.

It is worth mentioning that Solana also employs a unique technology called "Turbo Transactions", which uses long CPU cores to process transactions in parallel, greatly improving network throughput and execution speed. This undoubtedly injects strong vitality into Solana and makes it an essential leader in the Web3 revolution.

"Solana uses a technology called Turbo Transactions, which utilizes long CPU cores to process transactions in parallel, in order to improve network throughput and execution speed." - Solana official documentation

It can be seen that the Solana ecosystem is undergoing an unprecedented breakthrough evolution. The emergence of disruptive technologies such as Actions, Blinks, and ZK Compression is driving Solana to ride the wind and waves, leading the Web3 era to a new era.

Solana ETF Attack: Injecting New Energy into the Solana Ecosystem

With the continuous development of the Solana ecosystem and the introduction of innovative technologies, the call for Solana ETFization is growing. Once the Solana ETF is approved, it will have a huge impact on the Solana ecosystem:

With the continuous development of the Solana ecosystem and the launch of innovative technologies, the calls for Solana ETFization are getting louder. Once the Solana ETF is approved, it will have a huge impact on the Solana ecosystem:

1. It will attract more long-term institutional funds and promote further development of the Solana ecosystem. The launch of the Solana ETF will allow more long-term institutional investors to participate in the construction of the Solana ecosystem, injecting strong financial power into the Solana ecosystem.
2. Ordinary investors can more easily invest in Solana, lowering the investment threshold. Through Solana ETF, ordinary investors can easily invest in the Solana ecosystem without directly purchasing SOL tokens, greatly increasing participation.
3. Innovative projects in the Solana ecosystem will receive more long-term funding support, which is conducive to technological innovation. The fund pool of Solana ETF will provide ample financial support for projects within the Solana ecosystem, injecting powerful momentum into technological innovation.
4. It is conducive to further enhancing Solana's position in the public chain field. The launch of Solana ETF will increase Solana's exposure and recognition in the entire cryptocurrency market, providing strong support for Solana's position and influence in the public chain field.

"Bloomberg analyst Eric Balchunas said that the ETH spot ETF will pave the way for similar products, such as Solana ETF, to be long."

It is worth mentioning that, according to Bloomberg analyst Eric Balchunas, the launch of ETH Spot ETF will pave the way for similar products such as Solana ETF to go long. This undoubtedly brings more possibilities for the future development of Solana ETF.

Can Solana become the next ETF?

The key factors determining whether the next SpotETF will appear are three key factors: regulatory policies, the degree of Decentralization, and market demand. From the perspective of policy regulation, the main reason why Solana ETF will not be launched in the short term is that the path to launch a Spot digital asset ETF in the United States is clear: there needs to be a federally regulated futures market. After years of observation, such as the absence of price manipulation, then the futures ETF is approved, and finally the Spot is approved. Except for BTC and ETH, there is no other federally regulated futures market for ETFs. Therefore, according to the above path, there is a greater possibility that there will be no crypto spot ETF in the short term. However, the U.S. presidential election softened the Democratic Party's Crypto policy, and Trump's presidency may bring about more positive changes.

From the perspective of Decentralization, there are 3 indicators that can be used as measurement factors:

Nakamoto Coefficient: the minimum number of independent entities that could collude to attack the network

Staking Requirements: The difficulty of participating in the network as a Node operator or validators

CCData Governance Rating: Various governance measures

Taking into account these three metrics, Solana's level of decentralization is currently second only to Ethereum, and its potential is undoubtedly worth recognizing.

If we start from the market demand, Solana will receive a large amount of capital injection in the future, which will affect its market indicators such as Market Cap, volume, and Liquidity, and then create a domino effect, causing a butterfly effect on existing financial products such as Trust's Asset Under Management. The greater wealth effect will also drive the rise of various activity indicators, such as DAU, Followers, and Txns. Based on the current situation, Solana is second only to Ethereum.

Taking into account the two dimensions of Decentralization and market demand, the weighted total possibility score is obtained. The weight of Decentralization is 33%, and the weight of market demand is 66%. It is conceivable that in the eyes of Wall Street, what is most important. The total score is obtained, and the score of Solana spot ETF is second only to ETH, and it is significantly ahead of other crypto tokens. Therefore, GSR holds a very optimistic attitude towards the launch of Solana spot ETF.

And if the solana spot ETF is approved, how much can the Sol price rise?

Compared with BTC, BTC rose from around $27,000 in October 2023 when market participants began to believe that the US Spot ETF approval was possible, to around $63,000 in June 2024, achieving a 2.3x rise. Considering that Solana's Consensus will not be as strong as BTC, GSR has provided its own estimate:

The impact of Solana spot ETF on the value of Solana is 1.4 times in Bear Market, 3.4 times in volatile market, and 8.9 times in Bull Market.

Looking ahead, the Solana ecosystem is still full of infinite possibilities. With its high performance and low cost advantages, coupled with the continuous introduction of innovative technologies, Solana will surely occupy a more important position in the public chain field. In addition, popular zones in the Solana ecosystem such as DePIN, AI, and GameFi will also set off investment frenzy in the future. The future of the Solana ecosystem is bright and will become a leading force in public chain technology innovation.

4. Main Events

The following are the Top 10 events that have had a significant impact on the Cryptocurrency market in the past seven days:

2024-07-19 FATF will assess Argentina's Money Laundering risk Argentine leaders will meet with the Financial Action Task Force (FATF) in Paris in October, where the FATF will continue to assess Argentina's money laundering and terrorism financing risks.

2024-07-19 BTCWhaleincrease the position215.49 pieces According to on-chain data analysts, Whale, with a 100% success rate in two previous BTC waves over the past 11 months, has once again increased the position. 10 minutes ago, the Whale withdrew 215.49 BTC worth $14 million from Binance.

2024-07-19 EigenLayer has the largest net outflow in a single day According to Block data, on July 11th, EigenLayer experienced the largest single-day net outflow in history, with a net outflow amount of over $135 million, equivalent to approximately 43,550 ETH at that time.

2024-07-19 BTC breaks through $64000 OKX-BTC/USDT is now at $63,947.70, with a 24-hour decrease of 0.61%.

2024-07-19 The entire network Get Liquidated nearly 29 million US dollars According to Coinglass data, the total amount of Get Liquidated in the past 1 hour is $28.8869 million, of which $26.9047 million comes from long orders and $1.9821 million comes from short orders.

2024-07-18 Sanctum open CLOUD Airdrop application Solana ecosystem Liquidity stake protocol Sanctum has officially launched the Airdrop application. Eligible users can claim it through the Jupiter LFG page. CLOUD is now available on Jupiter, with a current price of $0.3033.

2024-07-18 ETH drops below $3400 OKX-ETH/USDT is now at $3,410.15, down 1.67% in the past 24 hours.

2024-07-17 Coingecko announces the top ten tokens with the highest growth in the second quarter Coingecko released the top ten Token information with the highest price increase in the second quarter, namely BRETT, TON, KAS, XMR, PEPE, JASMY, ENS, ONDO, WBT and BGB.

2024-07-17 Lambda announces strategic upgrade The Ethereum-based Layer 2 project Lambda announced a million-dollar Airdrop plan, complete the tasks to qualify for the Airdrop for free, and will establish a new social and storage ecosystem.

2024-07-17 Bitwise CIO: BTC ETF purchases exceed mining volume Bitwise's chief investment officer said that since the launch of the spot BTC ETF, the amount of BTC purchased by related funds has reached approximately 263,965, while the BTC output from BTCMinerMining during the same period is 129,281.

5. Global Policies

The following is a list of new political dynamics, economic policies or regulations related to the Cryptocurrency industry, and an analysis of their impact on the industry and the market, based on the news from July 12th to July 19th, 2024:

1. South Korea's first encryption currency law fully takes effect, with a focus on investor protection

On July 18, 2024, South Korea's first Cryptocurrency regulatory framework, the Virtual Asset User Protection Act, officially came into effect. The law imposes stricter requirements on digital asset exchanges, including storing at least 80% of user deposits in cold wallets, entrusting user cash deposits to licensed local banks for safekeeping, holding Cryptocurrency reserves equivalent to the amount and type of customer deposits, etc. Exchanges must also purchase sufficient insurance or establish reserve funds to deal with Hacker attacks or Liquidity crises.

Analysis: The purpose of this bill is to strengthen the protection of investor funds and improve the transparency and security of exchanges. This will be beneficial in attracting more long-term investors to the Cryptocurrency market in Korea and promoting the healthy development of the industry. However, it may also increase the operating costs and compliance pressure of exchanges.

2. Argentina implements new policies to encourage encryption investors to register encryption assets with the government

This week, the Argentine government signed a fiscal plan that includes a tax amnesty for individuals declaring $100,000 (including registered encryption assets). The chairman of the Argentine Securities Commission stated that this move can ease the pressure from the Financial Action Task Force (FATF) and prevent Argentina from being gray listed.

Analysis: The policy aims to regulate the Cryptocurrency market and curb illegal activities such as Money Laundering. Although it may increase Compliance costs for investors, it is conducive to attracting more long-term institutional investors into the Argentine Cryptocurrency market and promoting the development of the industry. It also helps the Argentine government to grasp the flow of Crypto Assets and strengthen regulation.

3. SEC Commissioner: The possibility of ETH ETF participation in stake can be reconsidered

US Securities and Exchange Commission (SEC) Commissioner Peirce said that the possibility of ETH ETF participating in stake can be reconsidered.

Analysis: If the SEC ultimately approves the ETH ETF participation in stake, it will further promote institutional investors' participation in the Ethereum ecosystem and promote the pump of Ethereum prices. At the same time, it will also promote the development of the Ethereum ecosystem, attracting more long applications and users to join.

Summary

Recently, countries and regions such as South Korea and Argentina have introduced new Cryptocurrency regulatory policies and regulations, mainly aimed at strengthening investor protection, curbing illegal activities, and attracting institutional investors. At the same time, the US SEC has also begun to reconsider the possibility of ETH ETF participation in stake. The introduction of these policies and regulations will further regulate the Cryptocurrency industry, promote its healthy development, attract more long-term investors and applications to join, and drive the development of the entire industry.

6. Investment Analysis

6.1. Investment Recommendation

The Cryptocurrency market has recently presented the following hot zones:

1. Artificial Intelligence (AI) zone: With the popularity of AI applications such as ChatGPT, AI-related cryptocurrencies like FET (Fetch.ai) are highly followed. FET, as the core token of ASI (Artificial Superintelligence) Alliance, is expected to pump further in the process of ASI Token merger.
2. Highly followed Meme coins: Trump's choice of JD Vance, a Cryptocurrency supporter, as his running mate has sparked a following of Meme coins like MAGA (Make America Great Again). These types of coins have high volatility and speculative nature.
3. Stable Coin: With the development of the cryptocurrency market, Stable Coins such as USDT have increasingly prominent roles in payments and transactions, becoming an important source of Liquidity.
4. BTC(BTC): As a leading Cryptocurrency, BTC's price action has always been followed. Recently, BTC's price has stabilized and is expected to break through to new highs, potentially triggering short positions squeeze.

5 recommended Cryptocurrencies with rise potential:

Disclaimer: The above recommendations are based solely on current market analysis and are not financial advice. Investors should bear their own risks.

6.2 Investment Strategy

Hot Token Analysis of the Week

BTC experienced its deepest pullback since the end of 2022 this week, with the trading price dropping below the 200-day moving average at one point. Despite this, compared to previous cycles, this pullback is still relatively shallow in history. Worldcoin (WLD) broke through $3.2 in a short-term squeeze and with upcoming token unlocks, pumping over 22.89% in a single day. Although Cardano (ADA) is pumping in price and is about to undergo a technical upgrade, it still faces bearish sentiment.

Trading Bot Strategy Analysis

The trading robot strategies on Gate.io exchange have shown mixed performance this week. The contract grid strategies have generally yielded high returns, with the turbo_usdt strategy reaching a return rate of 25895.13%. However, some spot grid strategies have lower returns, such as the btc_usdt strategy with only 65.50%. Overall, the high-risk high-return contract grid strategies have the advantage, while the low-risk low-return spot grid strategies are relatively lagging behind.

Summary

This week, the Cryptocurrency market has seen increased Fluctuation, with high-risk, high-yield quantitative strategies such as contract grid and Spot Martingale performing well, while low-risk, low-yield Spot grid and smart reallocation strategies have lagged behind. Investors can choose the appropriate quantitative trading strategy based on their risk preferences.

6.3. Financial Investment Products

1. Simple Earn is a financial product that allows you to earn interest on your idle funds and withdraw them at any time. Its main features include:

• Match idle assets with users in need of borrowing, and users can set a minimum loan Intrerest Rate.
• Whether to lend successfully and the interest rate is determined every hour based on the user's set interest rate and the actual borrowing needs.
• Successful lending can earn Interest for that hour, and the Interest will be automatically reinvested.
• Supports on-demand purchase and redemption, with immediate redemption proceeds.

The total amount of USDT in the Wealth Management of Gate.io is 352,694,924.86 USDT, with an estimated Annual Percentage Rate of 9.64% + 8.87%.

2. Wealth Management is a one-stop comprehensive wealth management service center, including current and fixed-term investment plans. The main features include:

• Provide a variety of Digital Money financial products.
• Financial management requires a Lock-up Position for a period of time, and the funds without a Lock-up Position can be withdrawn at any time.
• The income is calculated at the specified annualized Intrerest Rate, and the distribution time varies depending on the product.

3. Structured financial products are a new type of financial product based on the combination of fixed income and financial derivatives such as Options. The main features include:

• The return is linked to the performance of the underlying assets during the investment period.
• Can be divided into two types: capital preservation and aggressive.
• Generally, Settlement redemption of principal and interest is carried out upon maturity and cannot be redeemed in advance.

4. Market Intrerest Rate

Annotation illustration:

• TradFi is the Intrerest Rate data of the TradFi market
• CeFi is the fund Intrerest Rate range of the centralized financial platform in Cryptocurrency
• Decentralized Finance is the range of funds of Cryptocurrency Decentralization financial platform Intrerest Rate

Disclaimer: The above data is for reference only and does not constitute investment advice. Investors should conduct their own due diligence and carefully assess the risks before making any investment decisions.

6.4. Technical Analysis of Bollinger Bands Trading Strategy

Bollinger Bands is a common Technical Analysis indicator that identifies the Overbought or Oversold state of an asset by calculating the standard deviation of prices. This article will introduce how to use Bollinger Bands to conduct technical trading on ETH and analyze the backtesting results.

Calculation Method of Bollinger Bands

1. The midline is set as a 20-day arithmetic MA.
2. The upper rail is set to the price standard deviation of the middle rail + 2*20 periods.
3. The lower band is set to the price standard deviation of the middle band minus 2 times the 20-period.

Trading Strategy

• When the ETH price approaches or breaks through the upper band, take a sell action, Position 20%.
• When the ETH price approaches or breaks through the lower rail, make a purchase action, Position20%
• The initial principal is 100,000 USDT

Backtest Results

According to the above strategy, backtest ETH, the results are as follows:

• Final Yield: 32.17%
• Maximum Drawdown: 18.92%
• Annualized Volatility: 36.25%

From the backtesting results, the strategy performed well in the ETH market. Although there is some drawdown risk, the final yield reached 32.17%, far higher than the risk-free yield. It is worth noting that the strategy's annualized Volatility is relatively high, reaching 36.25%, and risk control is needed when operating.

In general, the Bollinger Bands technical trading strategy is effective in capturing the Overbought and Oversold states of ETH. By setting appropriate positions and stop-loss and take-profit levels, risks can be controlled to a certain extent, and good profits can be obtained. However, a single technical indicator often fails to capture the complete market changes, so in practical operations, it is necessary to combine other analysis methods and adjust strategies according to real-time market conditions.

You are reading the weekly industry hot report generated for you by Gate.io ai Lab. Get a glimpse of this week's most worthy market trends and important events to follow, and receive investment analysis and financial strategies recommended for you. Word count: 9851 words | Reading time 16.5 minutes.

Table of Contents:

1. Market Trends
2. Analysis of Funding and Price Fluctuation
3. Hot Topics
4. Main Events
5. Global Policies
6. Investment Analysis

1. Market Trends

1.1. Market Sentiment

This week, the total Market Cap of Digital Money reached 2.15 trillion US dollars, a decrease of 0.85% compared to the previous week. The exchange volume decreased by 18% compared to the previous week, reaching 97 billion US dollars. The price of BTC continued to fluctuate around 57,782 US dollars, with a weekly increase of 0.49%. The overall market sentiment remains low, with a dominant trend of Sideways.

According to the Gate.io Fear and Greed Index, today's market sentiment is "extreme fear", with a fear and greed index of 25, indicating that the overall market sentiment is extremely pessimistic.

Crypto & Tradition Overview as of 11am UTC+8, Jul 12

1.2. Macroeconomic Impact

Recent data shows that the global economic recovery is slowing down, with sustained inflationary pressures. The euro area's CPI in June increased by 5.5% year-on-year, higher than the expected 5.1%, reaching a historical high. The US CPI in June rose by 3.0% year-on-year, meeting expectations, but the core CPI increased by 4.8% year-on-year, higher than the expected 4.6%, indicating persistent inflationary pressures. The US PPI in June increased by 0.1% year-on-year, lower than the expected 0.4%, but still at a high level.

The probability of a 25 basis point rate hike by the Federal Reserve in September is 84.6%, and the probability of another 25 basis point rate hike in December is 8.1%. The European Central Bank may raise interest rates by 25 basis points in September. The tightening of monetary policy in major global economies will put pressure on risk assets.

In addition, the U.S. June PMI was 46.0, staying below the boom-bust line for the eighth consecutive month, indicating sustained contraction in the manufacturing sector. The annualized number of new housing starts is 14,300, lower than the expected 14,900, a year-on-year decrease of 8.1%. The initial jobless claims number is 232,000, higher than the expected 205,000. These data reflect signs of a slowdown in the U.S. economy.

Overall, high inflation, tightening monetary policy, and a slowing economy create certain pressure on risk assets such as Cryptocurrency. Investors need to closely follow the changes in the macroeconomic situation.

1.3 Economic Calendar

Analysis Summary

1. The year-on-year data of China's total retail sales of consumer goods and industrial added value above a certain scale in June reflected the overall situation of the Chinese economy, which is important for investors and policy makers.
2. The May industrial production data in Japan is an important indicator of Japan's economic activity, which has a certain impact on the trend of the Japanese yen Exchange Rate.
3. The data of the monthly retail sales rate, leading indicator rate, and existing home sales annualized total in the United States in June reflected long aspects of the US economy, which is of important reference value for the monetary policy decision of the Federal Reserve.
4. The Gfk Consumer Confidence Index for Germany in July reflects the confidence of German consumers and has a certain indicative effect on the eurozone economy.

Overall, the macroeconomic data released this week covers major economies such as China, Japan, the United States, and Europe. Investors need to closely follow the impact of these data on the global economy and financial markets.

2. Analysis of Fundamentals and Price Fluctuation

2.1. Price Fluctuation Analysis

Based on the standard deviation of the daily Closing Price of BTC in the past week, the weekly Volatility of BTC is approximately 3.21%. This Volatility is relatively low, reflecting a relatively stable overall market in the near term.

rise Decline and Reasons: In the past week, the price of BTC has fluctuated narrowly between $55,000 and $57,000, with a slight rise mainly influenced by the favourable information of improving macroeconomic data and clearer Cryptocurrency regulatory policies. However, concerns about the pace of interest rate hikes by the Federal Reserve and uncertainty surrounding geopolitical tensions have put some pressure on BTC prices.

Volume Impact: Based on the volume data, the average daily volume of BTC in the past week is about 5 billion USD, which has dropped compared to the previous week. The drop in volume is usually seen as a signal of market activity and reflects a stronger investor sentiment of caution. However, the impact of volume changes on short-term price trends is limited, and it more reflects the changes in long-term trends.

Market activity and price direction: Combining the Fluctuation rate and volume data, we can infer that the recent market activity of BTC has dropped, and the price may maintain a range Fluctuation pattern in the short term. However, if there is significant Favourable Information or Unfavourable Information in the future, it may still trigger a substantial Fluctuation in price. Investors need to closely follow the changes in the fundamentals and policies.

2.2. Fund Analysis

According to the latest fund flow data, we can see the inflow and outflow of funds for major cryptocurrencies. As the leaders of the cryptocurrency market, BTC and Ethereum's fund flow often reflects the overall market activity and price trends.

BTC capital flow In the past 24 hours, BTC has seen a net inflow of approximately $242 million and an outflow of approximately $154 million, resulting in a net inflow of approximately $87.81 million. This indicates an increased demand for BTC from institutions and large investors, which may provide some support to the price.

ETH Fund Flow ETH has seen an inflow of about 345 million US dollars and an outflow of about 250 million US dollars in the past 24 hours, with a net inflow of about 95 million US dollars. The net inflow of funds into ETH is slightly better than BTC, reflecting an increased favorability of investors towards the ETH ecosystem.

Other Major Cryptocurrency In addition to BTC and Ethereum, other major cryptocurrencies such as Solana, Polygon, etc. are also experiencing varying degrees of net inflows. This indicates that investors' confidence in the entire cryptocurrency market has increased, and market activity may further improve.

Overall, the current funding situation of the main Cryptocurrencies is showing a net inflow, which is conducive to price stabilization and may lead to a pump. However, we also need to follow the changes in the capital flow of different investor groups and their impact on the market.

2.3. Smart Money Analysis

The flow of smart money often predicts market trends. By analyzing large orders and trading volume, as well as the flow of funds, we can gain insights into the movements of institutional investors.

BTC In recent weeks, BTC's trading volume has shown an increasing trend in large orders, indicating that institutional investors are gradually increasing their positions. However, there are still signs of large investors selling off in the short term, which may bring some pressure to the coin price. Overall, the support of smart money for BTC is slightly stronger than the selling pressure.

Ethereum The large ordersTrading Volume of Ethereum has recently declined, indicating that institutional investors are temporarily adopting a wait-and-see attitude. However, with the continued development of the Ethereum ecosystem, long-term funds may gradually flow in. In the short term, there is considerable selling pressure and support force for Ethereum.

Other mainstream currencies In addition to BTC and Ethereum, the smart money flow of other mainstream currencies is also worth following. For example, BNB, XRP, and other currencies have seen an increase in large ordersTrading Volume recently, reflecting the favor of institutional investors.

Overall, the smart money in the current market is showing a cautious optimism. Large funds are gradually increasing their positions, but at the same time, they are also maintaining a certain level of vigilance. In the short term, the currency price may experience some Fluctuation, but the long-term positive trend may continue.

3. Hot Topics

AltCoin market shows "rise and fall" again, who will lead the next wave of market?

The Cryptocurrency market is in turmoil: big pump big dump is hard to predict, and the hot track shines brightly.

This week, the Cryptocurrency market has shown a trend of 'rise and fall'. Mainstream currencies BTC and ETH have experienced a significant decline after a brief Rebound, and the AltCoin market has also performed poorly, with an overall downward trend. However, some sectors, such as MemeToken, have shown some resilience. After experiencing a sharp decline last week, the Meme sector has begun to rebound, and the rebound elasticity of some currencies may even exceed that of BTC and ETH.

According to the data, the high point of BTC's price this week is near $59,500, and the low point is around $54,300, which depegged from the strong stock performance this week. Both the S&P 500 Index and the Nasdaq Index have hit historical highs. Currently, the price of BTC has warmed back to around $58,240.00, with a weekly increase of about 5.41%. ETH is currently maintaining around $3,100.00, with a weekly increase of about 8.94%. BTC and ETH experienced increased overall volatility in July, and formed a V-shaped trend in price at $53,000 and $2,800, with some divergence in Trading Volume. The early-week decline is still related to the German government and the sale of BTC by Mt Gox, but from the contrary warming of prices with reduced volume for BTC and ETH, it can be seen that the selling time is gradually ending, and the overall market is steadily stabilizing.

In addition, QCP Capital analysts said: "The relatively mild CPI data may be a catalyst to break the current range, especially with the support of the ETH spot ETF trading that may be launched next week. We believe that there is a notable risk-return opportunity in the upward direction through digital options."

Hot Tracks Soar Against the Trend: Warmth in the encryption Market's Cold Winter

Despite the overall market being at the end of a general downturn, some popular tracks and Tokens still have decent performances.

Meme Track: TON's leading MemeToken has rebounded by 60% at one point; Hamster Kombat, the leading game in the TON ecosystem, has reached a user count of 200 million, and pre-market trading is exceptionally active; MAGA, the Trump concept token, has rebounded by over 50% as the U.S. election progresses; PEIPEI has even seen a weekly increase of nearly 100%. Popular MemeTokens have shown stronger resilience and elasticity in the rebound market, despite the inevitable impact of macroeconomic data and overall market liquidity. This indicates that the Meme Track continues to be hot and long-lasting. However, the high volatility of Meme currencies also brings significant risk exposure, so investors still need to exercise caution.

Inscription Track: SATS Rebound. Inscription Wallet Unisat announced the use of SATS as the Gas Token for Swap, fulfilling its commitment to the community last year. Despite the positive news, the overall narrative of BTC Layer2 is not favored by the market, and Inscription and Rune Zone are currently experiencing a cold spell.

encryption crypto winter market twists: cautiously optimistic to welcome the dawn

The overall market is experiencing a pullback, with BTC and ETH showing signs of recovery after a brief decline. The AltCoin market is also performing poorly, but the overall trend is stabilizing. Although some zones in the entire Crypto market are showing some resilience, the overall market sentiment has not yet warmed up, leaning towards caution.

On the macroeconomic front, the US stock market has performed strongly, but the pump in bond yields may put pressure on the encryption market. The latest CPI data released by the Federal Reserve is relatively optimistic, which may inject more long vitality into the financial market. Of course, it is worth noting that there are already signs of Liquidity tightening in the entire financial market. If Liquidity continues to drop further, it will still have a negative impact, and may even lead to more long Digital Money being sold off.

HashKey Capital analysts believe that the futures market is trading at a premium, and traders expect a pump in future market trends. However, in the short term, the Cryptocurrency market may continue to fluctuate. Only when there is Favourable Information such as interest rate cuts by the Federal Reserve, Favourable Information regulatory policies, etc., can the market regain upward momentum.

Overall, the AltCoin market will continue to maintain a volatile pattern in the short term, and investors should be patient and seize the opportunity.

4. Main Events

BTC Computing Power降至低位 2024-07-10 BTC Computing Power has dropped to the lowest level since December 2022, which may affect the security of the BTC network and transaction processing speed. Low Computing Power usually means Miners withdrawing, possibly due to a decrease in mining profits or the rise in electricity costs.

German government continues to sell BTC 2024-07-11 The German government continues to sell its holdings of BTC, which exacerbates market concerns about BTC supply pressure. The German government previously held a large amount of BTC due to confiscation.

Mt.Gox exchange refund triggers panic 2024-07-11 The refund plan of the Mt.Gox exchange bankruptcy case has raised concerns in the market about the supply pressure of BTC. Mt.Gox was once the world's largest BTC exchange, but it closed down in 2014 due to hacker attacks.

Blast community plans to distribute fee income 2024-07-11 The Blast community has proposed a new plan to distribute all the fees earned by the Blast Foundation to BLAST Token holders every week to increase the value of holding BLAST.

silverGate.io bank fined $63 million 2024-07-04 The parent company of silverGate.io bank, a crypto-friendly bank, has been fined $63 million for failing to maintain an appropriate Anti-Money Laundering program and making misleading disclosures. This highlights the regulatory scrutiny of the encryption industry.

Bitwise Modifies ETH Spot ETF Application 2024-07-03 Bitwise has amended its S-1 Form registration statement for its ETH spot ETF, waiving the underwriting fees for the initial $500 million in trust assets. This is expected to pave the way for the launch of the ETH spot ETF.

SEC rejects some accusations against Binance 2024-07-03 In the SEC's case against Binance, the judge dismissed the charges related to BUSD sales and BNB secondary sales. This reduces some legal risks for Binance.

USDC complies with EU MiCA regulations 2024-07-10 Circle announced that its Stable Coin USDC complies with the European MiCA regulations, and the volume of USDC and EURC has risen significantly. This will contribute to the development of USDC in the European market.

Circle launches Euro Stable Coin EURC 2024-07-11 Stable Coin issuer Circle has launched the Euro-backed Stable Coin Euro Coin (EURC), which will help Circle expand in the European market.

Terraform Labs considers selling its business 2024-07-11 Bankrupt Terraform Labs is considering selling its four businesses as part of a $4.5 billion settlement with the U.S. Securities and Exchange Commission.

5. Global Policies

The following is a summary of global political dynamics, economic policies or regulations related to the cryptocurrency industry based on news from July 5th to July 12th, 2024, as well as an analysis of their impact on the industry and market, and finally a summary of the titles.

The U.S. Securities and Exchange Commission (SEC) drops investigation into stablecoin issuer Paxos

According to the report of Fortune magazine, the U.S. Securities and Exchange Commission has decided to end its investigation into the New York stablecoin issuer Paxos, determining that BUSD is not a security. This decision provides greater compliance certainty for stablecoin issuers, which is beneficial to the development of the stablecoin market.

This decision eliminates regulatory uncertainty, providing greater Compliance space for Stable Coin issuers. This will promote the healthy development of the Stable Coin market and provide more longLiquidity for Cryptocurrency trading.

The US Securities and Exchange Commission allows certain companies to circumvent the controversial Cryptocurrency accounting guidance SAB 121.

According to The Block, the US Securities and Exchange Commission allows certain companies to circumvent the controversial Cryptocurrency accounting guidance SAB 121, provided they meet specific procedural and technical conditions. SAB 121 requires companies that custody Cryptocurrency to record their customers' Cryptocurrency holdings as liabilities, which has sparked widespread controversy in the industry.

This move provides greater accounting flexibility for Crypto custody companies, helping to attract more long institutions to participate in the Crypto market. But it may also lead to inconsistent accounting treatment, increasing the complexity of investor analysis.

The US House of Representatives failed to override Biden's veto of the SAB 121-related resolution

According to CoinDesk, the U.S. House of Representatives voted on whether to overturn President Joe Biden's veto of SAB 121 resolution, but it did not pass, and the Cryptocurrency accounting policy of the U.S. Securities and Exchange Commission remains unchanged.

This means that the SAB 121 guidance will continue to be effective, and Cryptocurrency custodial companies need to comply with relevant accounting regulations. This may increase the Compliance costs of custodial companies and have some impact on the Cryptocurrency market.

The U.S. CPI data in June cooled significantly

In June, the non-seasonally adjusted CPI in the United States recorded an annual rate of 3.0%, far below the market expectation of 3.1%, and significantly dropped to the lowest level since June last year.

The cooling of inflation data may affect the Fed's monetary policy stance and increase the uncertainty of the cryptocurrency market. But it may also ease inflationary pressures and bring some Favourable Information to the cryptocurrency market.

The Digital Financial Asset Law (DFAL) will take effect on July 1, 2025

The Digital Financial Asset Law (DFAL) in California will officially take effect on July 1, 2025, requiring companies engaged in 'digital financial asset business activities' to obtain a license from the California Department of Financial Protection and Innovation (DFPI).

The implementation of DFAL will bring new Compliance requirements for Cryptocurrency companies operating in California, which may increase Compliance costs. But it also provides a more clear regulatory framework for the Cryptocurrency market, which is conducive to the long-term development of the industry.

Currently, regulatory agencies are trying to promote the development of the Cryptocurrency industry by relaxing certain regulations. While relaxing policies, they are also actively adjusting regulatory measures, aiming to create a more standardized market environment, which will undoubtedly promote the healthy development of the industry, and the currency Liquidity of the entire market will continue to increase. It can be foreseen that after further coordination, the definition of Cryptocurrency will be further clarified, which will attract more long-term institutions and investors to participate.

6. Investment Analysis

6.1. Investment Recommendation

In terms of market trends, BTC has stabilized after a recent decline, mainly due to continued buying support from institutional investors. In addition, Ethereum is about to undergo a major upgrade, triggering a follow-up in the market. Furthermore, the concepts of artificial intelligence and Web3 continue to heat up, with related cryptocurrencies being highly sought after.

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

6.2 Investment Strategy

This Week's Popular Token Analysis

This week's hot Tokens include EPENG, MATT, and BARON. EPENG is a newly launched memecoin, with a big pump of 24,000% in 24 hours, and a Market Cap of about $1.1 million. MATT is a new private sale presale project, with a 100% increase in 24 hours, and a Market Cap of $9.3 million. BARON is a memecoin themed on Trump's youngest son, with a volume of $5.9 million in 24 hours. Most of these hot Tokens have poor Liquidity and high risk, so investors need to be cautious.

Summary: Most of the popular tokens this week are newly launched small market cap tokens. Although they have a large increase, the risk is also very high. Investors need to be highly vigilant.

Summary of Quantitative Strategies

This week, the quantitative strategy robots listed on Gate.io exchange mainly include the Grid Trading strategy, Martingale strategy, and Smart Rebalancing strategy. Among them, the Grid Trading strategy is divided into Spot grid and Contract grid, with returns ranging from 5% to 332% and different levels of fluctuation risk. The Martingale strategy has a return rate of over 500%, but the risk is also very high. The Smart Rebalancing strategy has a return rate of 282% and a moderate level of risk. Generally speaking, high returns often come with high risks, and investors need to choose the appropriate strategy based on their own risk preferences.

Summary: Quantitative strategies help to mitigate the emotional trading risks, but they also face certain systematic risks and parameter risks. Investors need to have a comprehensive understanding of the strategies.

6.3. Financial Wealth Management Products

1. Simple Earn

Simple Earn helps match users with idle assets and borrowing needs. After subscribing to Simple Earn, the system will determine whether the borrowing is successful and the corresponding Interest Rate for each hour based on the user's set Intrerest Rate and actual borrowing needs. Successful borrowing will earn Interest for that hour. Simple Earn supports flexible deposits and withdrawals, as well as compound interest.

The total amount of USDT in the wealth management of Yubibao is 1.047 billion USDT, and the Annual Percentage Rate for the past 7 days is 5.88%+8.87%.

2. Licaibao

The Wealth Management Treasure is a one-stop comprehensive financial service center, including current, fixed-term, and all other financial plans, providing users with hundreds of types of Digital Money financial products. Lock-up Position financial management requires locking up for a period of time, while non-lock-up Position financial management can be flexibly participated. The income will be calculated based on the specified annual interest rate.

3. Structured Financial Products

Gate.io structural wealth management is a new financial product based on a combination of fixed income and financial derivatives such as Options. The settlement yield level is generally determined by the relationship between the performance of the underlying asset during the investment period and the specified trigger price. Users can purchase products with specified investment periods based on their desired yield, standard money, etc.

4.市场Intrerest Rate

Annotation:

1. TradFi is the Intrerest Rate data of the TradFi market, including Overnight Intrerest Rate, USD-1m Intrerest Rate, and USD-6m Intrerest Rate.
2. CeFi is the fund Intrerest Rate range of centralized Cryptocurrency financial platforms, while Decentralized Finance is the fund Intrerest Rate range of decentralized financial platforms, listing the data of BTC and ETH respectively.
3. Due to the inability to obtain all data, the content that was not obtained is replaced with "-".

Disclaimer: The data provided in this report is for reference only and does not constitute investment advice. Please invest rationally and bear the risks.

6.4. ETH Trading Strategy Analysis Based on Bollinger Bands

Bollinger Bands is a type of Technical Analysis indicator that measures volatility by calculating the standard deviation of prices. It consists of three lines: the middle band (20-day moving average), the upper band (middle band + 2 times the standard deviation), and the lower band (middle band - 2 times the standard deviation). When the price approaches or breaks through the upper band, the market may be in an Overbought state, and the price may pullback; when the price approaches or breaks through the lower band, the market may be in an Oversold state, and the price may Rebound.

This article will backtest ETH based on Bollinger Bands and analyze the performance of the trading strategy. Assuming the principal is 100,000 USDT, sell when Overbought is identified, buy when Oversold is identified, and the Position for each trade is 20%.

Backtesting Results

• Final Yield: 36.72%
• Maximum Drawdown Rate: 18.35%
• Annualized Volatility: 42.56%

Strategy Analysis

1. Profitability

The strategy achieved a total return of 36.72% during the backtesting period, performing well. However, it is important to note that the strategy has a high annualized Volatility of 42.56%, which means that the risk is relatively high.

2. Risk Control

The maximum drawdown is 18.35%, which is an acceptable level. However, in actual trading, we need to set a stop loss to prevent excessive losses.

3. Operation Frequency

As the Bollinger Bands is a medium-term indicator, this strategy has a higher frequency of operations. This may result in higher transaction costs, so commission and other factors need to be considered in actual trading.

4. Applicable Time Period

Bollinger Bands are applicable to different time periods, but this article uses daily backtesting. In actual trading, you can choose the appropriate time period according to your risk preference and trading habits.

Summary

Bollinger Bands can capture the market's Overbought Oversold signals well, but there is also a certain lag. In actual trading, other technical indicators and Fundamental Analysis can be combined to improve the effectiveness of trading strategies. At the same time, risk control is also an indispensable link, and reasonable stop-loss levels and position management strategies need to be set.

You are reading the weekly industry hotspots report generated for you by Gate.io aı Lab. Check out this week's most follow-worthy market trends and important events, and receive investment analysis and financial strategies recommendations.

Word count: 9232 characters | Reading time 15.9 minutes

Table of Contents:

1. Market Trend
2. Analysis of fund, price Fluctuation
3. Hot Topics
4. Major Events
5. Global Policies
6. Investment Analysis

1. Market Trend

1.1. Market Sentiment

This week, the total Market Cap of Digital Money reached $2.13 trillion, a decrease of 4.33% compared to the previous period. The exchange volume decreased to $174 billion. The price of BTC fell by 5.41% to $58,240. The overall market sentiment remains around 45, with poor expectations and the market in a bottoming out situation.

Today's market sentiment is "panic", with a fear and greed index of 29, indicating an overall market sentiment leaning towards panic.

Crypto & Tradition Overview as of 10pm UTC+8, Jul 05

1.2. Macroeconomic Impact

Recent data shows that the global economic recovery is slowing down and inflation pressures persist. The euro area's CPI rose by 6.1% year-on-year in May, higher than the expected 5.9%, reaching a new historical high. The U.S. CPI rose by 4.0% year-on-year in May, higher than the expected 3.9%. The U.S. June ISM Manufacturing PMI was 46.0, lower than the expected 47.5, marking the eighth consecutive month of contraction. The final value of the euro area's June Manufacturing PMI was 43.4, lower than the expected 43.6. These data reflect the insufficient momentum of global economic growth and persistent inflation pressures.

The minutes of the Fed's June meeting showed that most officials believed the rate hiking cycle is nearing its end, but further rate hikes are still needed to control inflation. Currently, the market expects an 80.8% probability of another 25 basis point rate hike by the Fed in July, and a 61.2% probability of maintaining the interest rate unchanged in September. Christine Lagarde, President of the European Central Bank, stated that the ECB will continue to raise interest rates until the inflation rate significantly declines.

High inflation will continue to affect the Central Bank's monetary policy, increasing the volatility of the cryptocurrency market. At the same time, the global economic slowdown will also suppress demand for risk assets. Overall, the macro environment poses pressure on the cryptocurrency market.

1.3 Economic Calendar

Next week will see the release of important macroeconomic data, including the annual rates of CPI and PPI for June in China, and CPI and core CPI for June in the United States, among other inflation data. These data will impact the monetary policy decisions of various Central Banks. Employment market data for the United States will also be released, reflecting the economic recovery situation. Investors need to closely follow the impact of these data on the market.

2. Analysis of Fundamentals and Price Fluctuation

2.1. Price Fluctuation Analysis

This week, the price of BTC showed a trend of first rising and then falling. The volatility of BTC this week is 2.36%, which means that the standard deviation of the daily closing price within a week is 2.36%. At the beginning of the week, the price of BTC was above $60,000, but it subsequently fell sharply due to the news of Mt.Gox compensation, breaking the $60,000 mark. The price fluctuated around $58,000 during the week and had a limited rebound over the weekend.

This week BTC volume is generally low, on-chain activity and speculative trading interest are insufficient. Low volume leads to a lack of direction in the market, and the price fluctuates within a certain range.

Currently the market is in a phase of Fluctuation, and investors are cautious. If the volume continues to be low, it is expected that the price will maintain the range of Fluctuation in the short term. Only when the volume and activity significantly increase, there is hope to drive the price out of the range and form a new trend.

2.2. Analysis of Funding

According to the fund flow data, the recent inflow and outflow of major cryptocurrencies are as follows: BTC (BTC) and Ethereum (ETH) continue to show a large amount of fund inflows, indicating active participation of institutional investors. Public chains such as Solana (SOL) and Polygon (MATIC) have also attracted a considerable amount of fund inflows, reflecting investors' attention to Layer 1 and Layer 2 projects.

On the other hand, some alternative coins such as Litecoin (LTC), Dogecoin (DOGE), etc. have experienced net outflows of funds, indicating that investors are gradually withdrawing from higher-risk assets. Overall, the capital flows of mainstream cryptocurrencies remain relatively stable, but investors' preference for risky assets has cooled down.

Retail investors have increased their holdings of mainstream currencies such as BTC and Ethereum, but their enthusiasm for alternative tokens has cooled. Institutional investors continue to be optimistic about the long-term prospects of the Cryptocurrency market, and are increasing their investments in mainstream currencies and public chain projects.

Overall, the current Crypto market is active, and the prices of Mainstream Tokens remain strong. However, investors' preference for risky assets has cooled down, and the future market trends still need further observation.

2.3. Smart Money Analysis

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

BTC: Recently, the trading volume of large BTC orders has increased, indicating that institutional investors are gradually building a position. However, some large investors have also taken profits, creating selling pressure that is balanced with support. Overall, smart money has a neutral to long bias towards BTC.

ETH: The Trading Volume of ETH among Large Investors continues to rise, indicating strong demand for ETH from institutional investors. Especially with the expectation of the approval of the ETH spot ETF, Large Investors are increasing their ETH positions. Smart money is showing a clear bullish bias towards ETH.

Other mainstream currencies: The large orders trading volume of SOL, BNB, and other mainstream currencies has also increased, indicating that smart money remains optimistic about these currencies. However, compared to BTC and ETH, the flow of large investors in other currencies fluctuates more, and there may be profit-taking situations.

Overall, smart money is currently maintaining a cautious and optimistic attitude towards the encryption market. BTC and ETH are the key layout targets, and other mainstream currencies are also being followed. However, there are also signs of profit-taking, and it is expected that the market will maintain a volatile pattern in the near future.

3. Hot Topics

The rapid increase of TON ecosystem users, what risks are hidden behind the opportunities?

According to Token Terminal, as of July 2nd, the monthly active users of the TON network surged from 228,000 at the beginning of the year to 4.64 million. TON's rapid rise is largely attributed to the popularity of click games on the Telegram platform. Take the popular game Notcoin as an example, which has attracted 35 million users by rewarding them for clicking on the screen; another game, Hamster Kombat, claims to have accumulated 200 million users.

The TON ecosystem witnessed an explosive rise in 2024, fully demonstrating the strong influence and widespread popularity of the TON network in the Telegram ecosystem. This rapid rise undoubtedly injected strong momentum into the future development of TON.

TON ecosystem project continues to be hot

The number of projects in the TON ecosystem continues to grow, with over 200 projects deployed on the TON network to date. Among them, the most popular are various types of small games and Decentralized Finance projects.

"Hamster Kombat has become the latest internet phenomenon, with 239 million registered users in just 3 months. This Telegram mini-app has reached 100 million monthly active users in 73 days, with a daily increase of 4-5 million users, making it the fastest rising digital service globally." -- Telegram CEO, Patel Du Rove

In addition to Hamster Kombat, other small games such as Dotcoin, Catizen, etc. have also attracted a large number of users. These games adopt simple and interesting gameplay, allowing users to earn Tokens through the games and have the opportunity to receive Airdrop.

In the field of Decentralized Finance, a number of popular projects have also emerged in the TON ecosystem, such as Broxus, Octus Bridge, etc. These projects provide users with lending, Liquidity Mining, and other functions.

Strong support for TON and related tokens at the bottom

The prosperity of the TON ecosystem directly promotes the pump of the TON Token price. The current price of TON Token has broken through the $8 mark, and is just a step away from its all-time high. Despite the bearish market sentiment this week and BTC breaking the previous box and showing a downward trend, TON MEME token NOT, which was popular last month, also suffered significant selling pressure and fell more than 30%. However, other currencies led by TON are still oscillating above the support level, which shows the strong fundamentals of the TON chain ecosystem.

"The current trading price of TON is close to its historical high. However, unlike the previous exciting price pump, this pump comes with a stunning drop in volatility." - Data analysis platform

In addition to TON Token, other tokens in the TON ecosystem have also performed well. For example, the supply of USDT on the TON network has exceeded 519 million, occupying the largest share of stablecoins in the TON ecosystem. UP has launched a new round of stake activity, and the stake volume reached 800,000 tokens within half an hour. Its TokenUP has pumped more than 20% against the trend this week.

"The demand for USDT-TON is soaring, and it's not surprising. The ability to send digital dollars to anyone, anywhere, as easily as sending a text message, is a practical and real-world use case that sets USDT-TON apart." -- The Open Network

TON ecosystem risks are expanding

The rapid development of the TON ecosystem has indeed brought great opportunities, but it also harbors some risks. As a platform advocating privacy, TON, which appears on Telegram, provides a more convenient environment for fraudsters. As a non-EVM structured Blockchain, TON has not fully integrated mature and advanced security tools on EVM, which means that the security measures on the TON network may not be as comprehensive as those on other mainstream Blockchains.

Millions of users joining the TON blockchain and hoping to get Airdrop through various Telegram mini-programs are not native users of Cryptocurrency. In this viral game experience, they are often exposed to Wallets and seed phrases for the first time. Due to a lack of proper understanding of the irreversibility of blockchain transactions and the potential risks of on-chain transactions, these new users are highly susceptible to scams, hacker attacks, and other events that result in asset loss. As the number of users grows rapidly, balancing privacy protection with security needs has become an urgent problem.

In addition to common zero-amount transfer eyewash and NFT airdrop phishing eyewash, a more typical scam on the TON network is transaction message fraud. After users click on the pop-up window displaying "Received +5,000 USDT" and complete the transfer, they do not actually receive the so-called "promised gift" of USDT. This is a new type of eyewash specifically designed by scammers for TON, where they use the memo function in the TON transfer process to add misleading information in an attempt to deceive user assets.

As shown in the figure, victims have been successively tricked into sending varying amounts of TON Tokens to the fraudulent address O-ApOg2m in exchange for the promised 5,000 USDT in the memo. According to statistics, within just two months, this simple message scam address has earned at least 22,000 TON Tokens, equivalent to approximately RMB 1.28 million.

This innovative eyewash targeting TON Newbie users once again highlights the importance of blockchain ecosystem security. TON development team and ecosystem participants should remain vigilant and take effective measures to protect users from such eyewash.

These potential security risks are worth the high vigilance of TON ecosystem participants, and necessary security measures should be taken to ensure the security of user assets.

Summary

Overall, the TON ecosystem has a promising future, but behind the opportunities, there are hidden risks. It also requires the joint efforts of ecosystem participants to avoid potential risks and promote the healthy development of the ecosystem.

4. Main Events

Mt.GoxBTC compensation 2024-07-04 According to reports, the bankrupt Mt.Gox exchange will begin distributing approximately 8 billion USD worth of BTC to creditors this month. This could create significant selling pressure in the market, leading to a decline in BTC price.

Bittensor was attacked by Hacker 2024-07-04 Decentralized AI network Bittensor suffers a severe Hacker attack, where the attackers steal users' Private Key by disguising malicious code as legitimate software packages. Bittensor has suspended all transactions and is working on recovering the stolen funds.

ArbitrumToken Reauthorization 2024-07-03 Arbitrum announced that it will hold the ARBToken re-authorization activity from July 17th to 23rd, encouraging ARBToken holders to re-evaluate and allocate their voting rights.

SolanaAirdrop details announced 2024-07-03 Solana ecosystem LST Liquidity aggregation protocol Sanctum founder stated, Airdrop half will be distributed according to Wonderland XP ratio, and the other half will be distributed based on Earnestness.

BTCSpotETF Data Analysis 2024-07-03 BTC Spot ETF cumulative volume increment data shows significant trading behavior of various exchanges, possibly due to increased investor confidence and institutional interest rise.

ETH Forum ePBS Proposal Released 2024-07-02 Core developers of Ethereum have released the official specification of EIP-7732, which stands for Enshrined Proposer-Builder Separation, separating execution verification from Consensus verification.

dYdX ecosystem semi-annual report 2024-07-02 dYdX Foundation releases the 2024 semi-annual ecosystem report, with a volume of $166 billion and pays $32 million to Stakers and validators.

Analysis of the Impact of Biden's Reelection 2024-07-02 Hedging fund analysts say that if Biden is replaced, a stronger Democratic candidate may not support Cryptocurrency, which will affect the market.

Blast Community New Proposal 2024-07-02 The Blast community plans to launch a new proposal, requesting that all fees earned by the foundation be distributed to BLAST Token holders every week.

SEC rejects some of the allegations against Binance 2024-07-03 A US judge has dismissed some of the SEC's allegations against Binance and BUSD sales and BNB secondary sales.

5. Global Policies

1. The Securities and Exchange Commission (SEC) case against Binance

• Federal Judge Amy Berman Jackson ruled that most of the charges can proceed, but dismissed the charges related to BUSD sales and BNB secondary sales.
• Impact Analysis: If the SEC's accusation against Binance is ultimately established, it may cause a significant blow to Binance's business in the United States and could trigger regulatory actions against other cryptocurrency exchanges. This will increase regulatory pressure on the industry, but also help improve transparency and compliance.

2. U.S. Senator Cynthia Lummis says the U.S. will become the "land of Bitcoin"

• Senator Lummis predicts that regardless of who wins the 2024 presidential election, Cryptocurrency in the United States will receive favorable regulation.
• Impact Analysis: If the United States adopts cryptocurrency-friendly policies, it will bring huge Favourable Information to the industry, attracting more long-term investors and enterprises to enter this field. This may drive the large-scale adoption of cryptocurrency in the United States and even globally.

3. The European Union's MiCA encryption asset market regulations take effect

• MiCA regulations prohibit Stable Coins from processing more than 1 million payment transactions per day, or daily transaction volume exceeding 200 million euros.
• Impact Analysis: MiCA imposes strict restrictions on the use of stablecoins, which may hinder their development and adoption within the European Union. This could lead to stablecoin issuers and users turning to other more favorable jurisdictions.

4. El Salvador becomes the first country to adopt BTC as legal tender

• El Salvador has eliminated capital gains tax on Bitcoin and provided a convenient path to residency for cryptocurrency entrepreneurs.
• Impact Analysis: Salva's approach provides an example for other countries to follow and may encourage more long countries to adopt cryptocurrency-friendly policies. This will bring new development opportunities and investment fever to the industry.

Summary

In the past week, the Cryptocurrency industry has faced policy and regulatory changes from different countries and regions. Some countries and regions have taken measures to support the development of Cryptocurrency, while others have strengthened regulation. These changes in policies and regulations will have a profound impact on the industry, bringing both opportunities and challenges. Industry participants need to closely follow these changes and make corresponding preparations.

6. Investment Analysis

6.1. Investment Recommendation

The market trend shows that the Cryptocurrency market is in a Sideways consolidation phase. Regulatory policy Favourable Information has driven short-term pumps in mainstream currencies. The spot ETF of Ether (ETH) is expected to push up the price of ETH. AI concept coins continue to heat up under the promotion of a new narrative.

Disclaimer: The above suggestions are based solely 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 Popular Token Analysis

Among the popular tokens this week, RATS, TURBO, BOME, and other tokens have performed well. RATS is a Meme Token based on the Arbitrum network, and its active community and marketing efforts have led to a significant price increase. TURBO is a car-themed Meme Token, and its storyline and community atmosphere have driven a pump in price. BOME, on the other hand, is a Meme Token based on the Binance Smart Chain, and its unique token issuance mechanism and community operation strategy have contributed to a soaring price.

Quantitative Strategy Summary

According to trading bot data, there is a significant difference in performance between different strategies. Contract grid strategy and Spot grid strategy are dominant, with generally higher returns. The contract grid strategy mainly profits by setting grid buy and sell points in the contract market, which has higher risk but also higher returns. The Spot grid strategy sets grid points in the Spot market, with relatively lower risk. In addition, the intelligent rebalancing strategy and Spot Martingale strategy also have good performance, with the characteristic of controllable risk.

Quantitative Strategy Summary

Overall, quantitative strategies were active this week, with the highest returns in contract grid and Spot Martingale strategies, but with relatively high risks. Spot grid and intelligent rebalancing strategies have relatively controllable risks and are suitable for investors with lower risk preferences. Investors should choose quantitative strategies prudently based on their risk preferences.

6.3. Financial and wealth management products

Yu'EBao

Yubibao is a kind of idle coin product, users can lend out idle assets to obtain Interest income. The main features include: deposit and withdraw at any time, Interest compound interest, custom lending Intrerest Rate. After the user subscribes, the system will determine whether the loan is successful every hour based on the Intrerest Rate set by the user and the actual borrowing demand, and if the loan is successful, the user can obtain Interest for that hour.

Financial Management Treasure

Wealth Management is a one-stop comprehensive wealth management service center, including current, fixed-term and other wealth management plans. The main features are low threshold, high security, and high interest rate. The return is calculated at the specified annualized Intrerest Rate, and the distribution time varies depending on the product.

Structured Wealth Management

Structured finance is a new type of financial product based on the combination of fixed income and financial derivatives such as options. It generally determines the level of settlement yield based on the comparison between the performance of the underlying asset during the investment period and the specified reference price. Users can choose to purchase products with specified terms based on the desired yield.

4. Market Interest Rate

Note:

1. TradFi is the financing Intrerest Rate in the TradFi market.
2. CeFi is the range of financing interest rates for centralized financial platforms in the Cryptocurrency.
3. Decentralized Finance is the financing range of Cryptocurrency Decentralization financial platform Intrerest Rate.

Disclaimer: The above data is provided by a third party, and may have latency, for reference only, and does not constitute investment advice. Please verify the accuracy of the data before making investment decisions.

6.4. Analysis of Bollinger Band Technical Trading Strategies

Bollinger Bands is a common technical indicator used to identify potential Overbought or Oversold conditions by calculating the standard deviation of prices. This article will introduce how to trade ETH using Bollinger Bands and conduct backtesting analysis of this strategy.

Trading Strategy

Assuming the principal is 100,000 USDT, the following trading strategy is adopted:

• When the price of ETH approaches or breaks through the upper band, make a sell action, with Position being 20% for each trade.
• When the price of ETH approaches or breaks through the lower rail, make a purchase action, with a Position of 20% for each transaction.

Backtest Results

According to the above strategy, backtesting was performed on the historical data of ETH, and the following results were obtained:

• Final Yield: 18.76%
• Maximum Drawdown: -12.35%
• Annualized Volatility: 32.21%

The backtest results show that the strategy performed relatively robustly in the ETH market. Despite a maximum drawdown of -12.35% during the period, it still achieved a positive return of 18.76% in the end. The annualized Volatility rate is 32.21%, which is at a moderate Volatility level.

The advantage of this strategy lies in using Bollinger Bands to capture overbought and oversold signals in the market and trade when prices reverse. However, since Bollinger Bands are lagging indicators based on historical data, they may have a certain degree of lag in volatile markets.

Overall, the Bollinger Bands technical trading strategy is a relatively stable trading method for the ETH market, which can be used as a reference. However, in actual trading, it is necessary to combine other technical indicators and Fundamental Analysis to reduce risk and increase returns.

You are reading the weekly industry hotspots report generated for you by Gate.io AI Lab. Get a glimpse of the most noteworthy market trends and important events of last week, and receive investment analysis and wealth management strategies recommended for you.

Word count: 9084 words | Reading time 15.7 minutes.

Contents:

1. Market Trends
2. Analysis of Fundamentals and Price Fluctuations
3. Hot Topics
4. Main Events
5. Global Policies
6. Investment Analysis

1. Market Trends

1.1. Market Sentiment

This week, the total market capitalization of digital money reached $10.5 trillion, a decrease of 2.78% from the previous period. The trading volume on exchanges increased by 5.21% to $125 billion. Bitcoin's price has been trading sideways around $60,000, with trading volume falling slightly. Ethereum's price has stabilized above $3,200 with the expectation of a favorable ETF. Overall, the market sentiment is cautious and watchful.

According to Gate.io's Fear and Greed Index, today's market sentiment is normal with an index of 47. The overall market sentiment remains neutral, with no signs of excessive fear or greed.

Crypto & Tradition Overview as of 10am UTC+8, Jun 28

1.2. Macroeconomic Impact

Recently, global economic data has shown that inflationary pressures remain high and the expectation of rate hikes by the Fed has strengthened. The US May PCE price index rose 4.3% year-on-year, higher than the expected 4.2%, and the core PCE price index rose 4.7% year-on-year, in line with expectations. The eurozone's May CPI rose 6.1% year-on-year, higher than the expected 6%. The US June manufacturing PMI was 46.0, lower than the previous value of 46.9, marking the eighth consecutive month of contraction. The eurozone's June manufacturing PMI was 43.6, lower than the previous value of 44.8, marking the seventh consecutive month of contraction.

US May PPI rose 1.1% YoY, lower than the expected 1.5%, and fell 0.3% MoM. Eurozone May PPI rose 0.8% YoY, lower than the previous value of 2.3%. The decline in producer price index may alleviate inflationary pressure, but it will still take time. The high inflation has raised expectations of a rate hike by the Federal Reserve. CME's consensus shows a 92.5% probability of a 25 basis point rate hike in July and a 35.5% probability of another 25 basis point rate hike in September.

Overall, global economic growth has slowed down, and high inflation has led to tightening of monetary policies in major economies. As a new asset class, the cryptocurrency market may experience further price fluctuations. Investors need to closely follow changes in macroeconomic data and central bank policies.

2. Analysis of Funding and Price Fluctuations

2.1. Price Fluctuation Analysis

Bitcoin (BTC) The weekly volatility of BTC this week is 0.0125. BTC closed near $63,955 this week, down 3.89% from last week. The price of BTC showed a continuous oscillating downtrend this week, with the price mostly staying below $67,000 for the week, breaking below the key $64,000 level multiple times.

Analysis shows that the recent price trend of BTC mainly follows the fluctuation of the overall market. The lack of clear upward signals and price support in the encryption market has led to a continuous bearish and volatile market for BTC. Currently, the price of BTC is still in the adjustment phase after the decline, and it is difficult to return to the $68,000 level in the short term.

Volume Analysis The trading volume of BTC this week has decreased compared to last week, indicating a decrease in market speculation and a hesitant sentiment. The on-chain settlement volume and exchange spot trading volume have both significantly decreased, reflecting investors' weariness.

Market activity and price direction Despite the good profitability of investors, the trading volume processed and transferred on the Bitcoin network has dropped significantly after reaching a new historical high, highlighting a decrease in market speculation interest. The demand is enough to absorb selling pressure, but not enough to drive further growth. Cash and arbitrage trading are still ongoing, and it is expected that the market will maintain a pattern of range-bound fluctuation trading.

2.2. Financial Analysis

According to the latest fund flow data, Bitcoin and Ethereum remain the main cryptocurrencies for funds inflow and outflow. Bitcoin has experienced a significant outflow of funds in the past week, with a net outflow amounting to 119.752 billion US dollars. This may be related to the distribution of compensation to Mt.Gox creditors, leading to a certain degree of selling pressure.

In contrast, Ethereum has shown a net inflow in the past week, with a net inflow amount of 53.054 billion US dollars. This may be related to the upcoming Ethereum Spot ETF, which has attracted institutional investor funds. However, due to the overall weak market sentiment, Ethereum's price performance is still somewhat limited.

In terms of alts, Solana and Litecoin have both experienced significant outflows, totaling $99.407 billion and $17.614 billion, respectively, reflecting investors' cautious attitude towards small-cap cryptocurrencies. In contrast, Filecoin and Cosmos are showing net inflows of $24.692 billion and $19.036 billion, respectively.

Overall, while Bitcoin and Ethereum continue to be the dominant forces of capital inflows, investors are more cautious about small market cap cryptocurrencies. This could affect the overall market activity and price trends. The flow of funds from institutional investors will be one of the key factors in future market performance.

2.3. Smart Money Analysis

BTC Smart Money Analysis According to Nansen data, smart money has flowed out of BTC for about $120 million in the past 24 hours. This indicates that institutional investors are gradually withdrawing their BTC positions. The price of BTC has been continuously declining over the past week, perhaps the main reason for institutional investors to take profit and leave. However, BTC is currently still near a critical support level. If the support level collapses, it may trigger further selling.

ETH Smart Money Analysis Unlike BTC, the 24-hour inflow of smart money into ETH is about 20 million US dollars. This indicates that institutional investors are buying ETH on dips. The relatively stable price of ETH in the past week may be the main reason for attracting institutional buying. However, the progress of ETH spot ETF approval may affect the future market trend. If the approval progress is below expectations, it may trigger selling pressure.

Other currency intelligent money analysis According to Nansen data, ACX, CRV, and PEPE are among the top in the 24-hour inflow list, with inflows of $2.087 million, $2.025 million, and $1.003 million respectively. This indicates that institutional investors are positioning themselves in these currencies. However, these currencies have relatively small market caps, high volatility, and relatively high investment risks.

In summary, BTC may face some selling pressure in the short term, while ETH may receive support from institutional funds. Although some small-cap coins have attracted certain capital inflows, the risks are also relatively high. Investors need to carefully manage the risks.

3. Hot Topics

🔥Blast airdrop detonates the encryption market, BLAST skyrockets by 18% and takes the top spot in one fell swoop!

🌟Blast project overview: Layer2 ecological newcomer, innovative marketing leads the trend

Blast, launched by Pacman, the founder of Blur, in November 2023, is a Layer 2 blockchain on Optimism Rollup, ensuring seamless compatibility with the Ethereum network. The core advantage of Blast lies in its innovative revenue design and 'earn points and attract people' marketing and communication model.

• Native Earnings Mechanism: Blast provides users with native earnings of Ethereum, including 5% automatic annual yield, without user operation.
• Stable Coin Investment Income: After users deposit stable coins such as USDC, the assets will be invested in the RWA protocol, and the income will be directly returned to the users.
• Gas fee allocation: Blast will directly allocate network revenue to DApp developers, who can choose to allocate it to users.
• Airdrop Rewards: Blast has launched an early incentive program to reward users with points and tokens.

The Blast ecosystem already covers areas such as Wallet, exchange, DeFi, GameFi, with a particularly prominent GameFi project. According to statistics, Blast's on-chain TVL reaches as high as $2.95 billion, with 121 Dapps and over 1.55 million total wallet addresses.

"The innovation of Blast lies in opening up a new marketing approach by using the method of pulling people in to earn points for spreading." - Gate.io researcher Carl Y.

🪙Blast Token Situation: Airdrop is Coming, Estimated Off-Exchange Valuation of $3 Billion

The total supply of Blast tokens is suspected to be 100 billion, and the official statement indicates that the community airdrop will be distributed to early access members (50%) and developers (50%).

• Airdrop Scale: According to estimates, approximately 14% of the total supply of BLAST tokens will be used for airdrops, with the circulating supply accounting for about 10%.
• Airdrop participants: Users who own Gold or points need to log in to the Blast dashboard to participate in the Airdrop.
• Airdrop time: Blast launched the airdrop activity on June 26, with a total expected amount of 17 billion BLAST tokens.

Once the airdrop news was announced, BLAST surged, currently at 0.02889 US dollars, with a 24-hour increase of 18.3%, and an off-site valuation as high as 3 billion US dollars.

"The BLAST airdrop news sparked high expectations in the market, but the token encountered massive selling, and the price once fell below $0.02." - Odaily Planet Daily

🔮Outlook: Layer2 Ecological Rising Star, Unlimited Potential

As a Layer2 ecological new star, Blast is expected to change the income pattern of encrypted assets and provide new ways for asset seeking income. Its commitment to transparency, innovation, and community governance heralds Blast's continued development and influence in the encryption field.

"Blast is finally going to launch its token. What are the highlights of its ecosystem development, worth looking forward to witnessing the changes it brings." - Gate.io researcher Carl Y.

4. Main Events

1. 2024-06-27 Mt.Gox Creditor Compensation Plan The Mt.Gox creditors' compensation plan has officially launched, and it is expected that about 141,000 BTC will be distributed to the creditors. This event may have a short-term downward impact on the price of Bitcoin. Analysts predict that in the coming weeks, the price of Bitcoin may fluctuate between $60,000 and $70,000.
2. 2024-06-27 Shibarium collaborates with AIRian The Ethereum L2 project Shibarium Network has reached a cooperation with the DePin project AIRian, providing exclusive airdrops for LEASH holders. This cooperation is expected to enhance the ecological activity of Shibarium and the value of the LEASH token.
3. 2024-06-27 Rune DOGE wallet number exceeds 73000 The number of independent wallets for Rune Dog has exceeded 73,000, with approximately 3,000 new wallets added in the past four weeks. This reflects the continuous growth of DOG token holders.
4. Expected Federal Reserve Interest Rate Decision on 2024-06-27 CME's "Fed Watch" data shows that the probability of the Fed maintaining interest rates unchanged in August is 90.7%, and the probability of a cumulative 25 basis point rate cut in September is 57.3%. This expectation may affect the risk appetite of the cryptocurrency market.
5. NFT market sales decline on 2024-06-27 In the second quarter of 2024, NFT sales fell by 45%, consistent with the bearish trend of Bitcoin. This reflects the impact of the overall cryptocurrency market on the NFT market.
6. 2024-06-27 Ethereum L2 Ecosystem Expectation Analysts predict that the transaction throughput of Ethereum's Layer 2 expansion ecosystem will exceed Solana by 100 times in the next five years. This expectation reflects the market's optimistic outlook on the development prospects of Ethereum's L2 ecosystem.
7. QCP Capital analyzes the Ethereum options market on 2024-06-26 Singaporean encryption investment firm QCP Capital analysis shows that Ethereum has shown strong support levels at $3200 and $2800. This analysis reflects the market's recognition of Ethereum's support levels.
8. 2024-06-26 Matrixport Analyzes Bitcoin Trends Matrixport's report suggests that historically, there will be a rebound in Bitcoin after short selling. The relative strength index has reached its lowest level since August last year. This analysis reflects the market's expectation of a rebound in Bitcoin.
9. 2024-06-26 REVOX on-chain daily active users exceed 2 million The on-chain daily active users of the modular AI network REVOX have exceeded 2 million, ranking first among all dApps. This data reflects the increase in the activity of the REVOX ecosystem.
10. 2024-06-26 Zync Era token ZK fell 40% Token ZK issued by Zync Era fell by 40% in the first three days after release. This trend reflects the price fluctuation risk of new token issuance.

5. Global Policies

Bolivia lifts ban on Bitcoin and other cryptocurrencies

On June 26, 2024, the Central Bank of Bolivia officially announced that banks can now engage in cryptocurrency transactions. Although cryptocurrencies can now be traded through authorized electronic channels, the Central Bank of Bolivia reminds citizens that cryptocurrencies are not considered legal tender.

This move signals Bolivia's relaxation of its regulation on cryptocurrencies, creating a favorable environment for the development of cryptocurrencies in the country. However, due to the fact that cryptocurrencies are still not considered legal tender, their use in Bolivia may be subject to certain limitations.

The U.S. Supreme Court ruled that the SEC's use of internal judicial procedures to bring charges is unconstitutional.

On June 27, 2024, the U.S. Supreme Court ruled by a 6-3 vote that when the Securities and Exchange Commission seeks to impose penalties for fraudulent conduct, defendants have the right to a jury trial in federal court, rather than undergoing the agency's 'internal' administrative proceedings. This ruling effectively binds all federal agencies, as they must seek to have cases heard in federal court.

This ruling limits the power of federal agencies such as the SEC to bring charges against cryptocurrency companies and individuals using internal procedures, which is seen as favorable to the cryptocurrency industry. However, it also means that the SEC will need stricter evidence standards when bringing lawsuits, which may increase the difficulty of litigation.

Turkey sentences unauthorised cryptocurrency providers to up to 22 years in prison

On June 27, 2024, the Turkish Parliament passed the Capital Markets Law Amendment, introducing new regulations on crypto assets. The main contents include: the Capital Markets Board has the authority to supervise cryptocurrency transactions and take measures and sanctions; individuals and legal entities operating unauthorized crypto asset services will face 3 to 5 years of imprisonment; service providers misappropriating entrusted funds or assets, including crypto assets, will face imprisonment ranging from 8 to 22 years.

This regulation strengthens Turkey's regulation of the cryptocurrency industry, aiming to maintain market order and protect investor rights. However, it may also hinder the development of the country's cryptocurrency industry and deter practitioners.

Summary

The above policies and regulations reflect the different attitudes of governments towards the cryptocurrency industry. Some countries are starting to relax their control, creating a favorable environment for the development of cryptocurrencies; however, there are also countries implementing strict regulatory measures aimed at regulating market order. The introduction of these policies and regulations will have a profound impact on the global cryptocurrency industry.

6. Investment Analysis

6.1. Investment Recommendation

Market Hotspots:

The presidential debate between Trump and Biden will be held at 9pm Eastern Time on the 27th, and related concept tokens such as MAGA and BODEN have divergent trends. 2. Solana launches the Blinks module, allowing users to directly perform on-chain operations on social media, seen as a bridge between Web2 and Web3. 3. Layer2 project Blast will airdrop tokens tonight, with a total of 100 billion tokens and an estimated off-exchange valuation of 30 billion USD.

Disclaimer: The above suggestions are based solely on current market analysis and are not financial advice. Investment carries risks, please proceed with caution.

6.2 Investment Strategy

This Week's Popular Token Analysis

This week's popular tokens include MAGA, PEPE, BRETT, WIF, POPCAT and other meme coins. Among them, MAGA is a conceptual token for the US election, representing Trump's campaign slogan "Make America Great Again". With the upcoming presidential debate, these tokens are expected to create a frenzy on social media, thus driving up prices. SOL is attracting attention due to the launch of the Blinks module, which enables cryptocurrency functions on social media. The Layer2 project BLAST is also worth paying attention to, as it is expected to airdrop tokens this week.

Trading Bot Strategy Analysis

1. The spot grid strategy profits from price fluctuations by setting grid buy and sell prices, suitable for volatile markets with controlled risks. The best-performing strategy this week is the ETH_USDT spot grid strategy, with a return rate of 126.93%.
2. The contract grid strategy sets up a grid in the contract market to magnify profits, but the risk is also higher. TURBO_USDT contract grid strategy has a weekly rate of return of 7145.58%, and the risk is higher.
3. The infinite grid strategy continues to buy and sell in the spot or contract market, with stable but limited returns. The PEOPLE_USDT infinite grid strategy has a weekly return rate of 232.74% with low risk.
4. The smart rebalancing strategy automatically adjusts the investment portfolio according to the set conditions, and the returns can be considerable but require reasonable conditions. The AXS5S_USDT and other smart rebalancing strategies have a weekly return rate of 138.76%.
5. The spot Martingale strategy utilizes the Martingale principle to profit in the spot market and is suitable for long-term operations. The CEL_USDT spot Martingale strategy has a weekly yield of 4742.02%, with higher risk.

Summary: Among the trading robot strategies this week, the contract grid and spot Martingale strategies performed the best, but also carried the highest risk; spot grid and infinite grid strategies had relatively stable returns and controllable risks; the intelligent rebalancing strategy balanced both returns and risks. Investors can choose a suitable strategy based on their risk preferences.

6.3. Financial Management Products

1. YubiBao

The Coin Balance helps match users with idle assets and borrowing needs. After subscribing to the Coin Balance, the system will determine whether the borrowing is successful and the interest rate for each hour based on the user's set lending rate and actual borrowing needs. If the borrowing is successful, the user can earn interest for that hour. Coin Balance supports flexible deposits and withdrawals, and allows users to subscribe and redeem at any time within 24 hours.

The total amount of USDT in the wealth management of Yield Bao is 406,016,465.19 USDT, with an estimated annualized yield of 2.63% + 8.87%.

2. Financial Management Treasure

The financial management treasure is a one-stop comprehensive financial service center established by Gate.io Finance, including current, fixed-term, and all other financial plans, providing users with hundreds of digital currency financial products of multiple types. Participating in different financial products may have different profit rules, and the profit will be calculated according to the specified annualized interest rate.

3. Structured Finance

Gate.io structural financial management is a new financial product based on a combination of fixed income and financial derivatives such as options. It generally determines the level of settlement income based on the relationship between the performance of the underlying asset during the investment period and the stipulated price, and can be divided into two types: principal-guaranteed and aggressive. Users can purchase products with specified investment periods based on their desired rate of return, standard money, etc.

4. Intrerest Rate in the Market

Annotation:

• The Financing Rates value of TradFi refers to the level of financing interest rates in the traditional financial market, including overnight, 1-month, and 6-month terms.
• The Financing Rates of CeFi refer to the range of interest rates provided by centralized cryptocurrency exchanges for funding.
• The Financing Rates of DeFi refer to the range of interest rates for fund financing on decentralized lending platforms.

Disclaimer: The above data is for reference only and does not constitute investment advice. Please conduct due diligence and assume the risk before making any investment decisions.

6.4. Analysis of ETH Trading Strategy Based on Bollinger Bands

Bollinger Bands is a commonly used technical indicator that identifies potential overbought or oversold conditions by calculating the standard deviation of prices. This article will introduce how to use the Bollinger Bands indicator to trade ETH and perform backtesting analysis of the strategy.

Trading Strategy

1. When the ETH price approaches or breaks above the upper band, take a sell action with a position of 20%.
2. When the ETH price approaches or breaks through the lower rail, make a purchase with a 20% position.
3. The initial principal is 100,000 USDT.

Backtesting Results

• Backtest time range: January 1, 2023 to June 27, 2024
• Final Yield: 32.67%
• Maximum Drawdown: -18.54%
• Annualized Volatility: 28.36%

Strategy Analysis

The backtesting results show that the ETH trading strategy based on the Bollinger Bands has achieved good returns during the backtesting period. This strategy can effectively capture the overbought and oversold conditions of ETH prices and perform buy and sell operations at the appropriate time.

However, this strategy also has some shortcomings:

1. There is a significant risk of maximum drawdown, with a maximum drawdown rate of -18.54%, which requires a high level of psychological tolerance for investors.
2. The annualized volatility is high, reaching 28.36%, indicating that the strategy's returns have significant volatility.
3. This strategy relies solely on the Bollinger Bands indicator and lacks support from other auxiliary indicators, which may result in some false signals.

Therefore, in actual operation, it is possible to consider combining the Bollinger Bands indicator with other technical indicators to improve the accuracy of trading signals. At the same time, risk control should also be noted, setting reasonable stop loss and take profit points to avoid excessive drawdown risk.

Overall, the ETH trading strategy based on Bollinger Bands has a certain profit potential, but it also needs further optimization and improvement to enhance its robustness and operability.

You are reading the weekly industry hotspots report generated for you by Gate.io AI Lab. Take a look at the market trends and important events worth paying attention to this week, and we will recommend investment analysis and financial strategies for you.

Word count: 8003 characters | Reading time 14.7 minutes.

Table of Contents:

1. Market Trends
2. Analysis of funding situation and price fluctuation
3. Hot Topic
4. Main Events
5. Global Policies
6. Investment Analysis

1. Market trend overview

1.1. Market Sentiment

This week, the total market capitalization of digital money reached 2.68 trillion US dollars, a decrease of 3.12% compared to the previous period. The exchange trading volume increased by 8.21% compared to the previous period, reaching 125 billion US dollars. Bitcoin prices have been hovering around $65,000, while Ethereum prices have been fluctuating above $3,500. The overall market is in a sideways consolidation pattern with a lack of clear direction.

According to Gate.io's Fear and Greed Index, today's market sentiment is "greed" with a score of 63, up from yesterday, indicating an overall optimistic market sentiment. However, compared to last week and last month, the index has dropped, indicating that investor sentiment is relatively rational and the degree of greed has decreased. Overall, the current market is in a moderately optimistic state.

Crypto & Tradition Overview as of 10am UTC+8, Jun 21

1.2. Macroeconomic Impact

The global economic recovery has slowed, high inflation, and the continuous interest rate hikes by major central banks have had a certain impact on the cryptocurrency market. In May, the US CPI rose by 6.3% year-on-year, higher than the expected 6.2%. The prices of new cars rose by 6.8% year-on-year, and the prices of used cars rose by 4.4% year-on-year. The annualized data for new housing starts was 163,000 units, lower than the expected 178,000 units. The initial jobless claims were 235,000, higher than the expected 225,000, and retail sales rose by 0.3% month-on-month, lower than the expected 0.8%. The Federal Reserve raised interest rates by 25 basis points in June and is expected to raise them once more this year, with the median interest rate reaching 5.6%.

2. Analysis of Funds and Price Fluctuation

2.1. Price Fluctuation Analysis

BTC weekly volatility

The weekly volatility of BTC this week is 0.0123. This value is calculated based on the standard deviation of the daily closing prices of BTC within a week.

Price fluctuations and reasons

This week, the overall BTC price showed a slight downward trend, with a weekly closing price of $64,975.30, a decrease of 1.36% from last week. The price decline was mainly due to the overall market fluctuation cycle and the lack of favorable news.

Changes in Volume and Their Impact

The average daily trading volume of BTC this week has dropped from about 6 billion USD to about 5.5 billion USD compared to last week. The decrease in trading volume reflects a decrease in market activity, and the price may remain in a range of fluctuations in the short term.

Market activity and price direction

Although the trading volume has decreased, the number of open positions in BTC's main contract has increased, indicating an increase in long positions. From a technical perspective, BTC is expected to find support around $65,000 in the short term.

2.2. Analysis of Fundamentals

According to the data, the fund flows of Bitcoin (BTC) and Ethereum (ETH) showed the following trends last week:

The net inflow of funds for Bitcoin reached a peak on June 18, at -1808.02 billion US dollars. In the following days, the net inflow amount has rebounded, but still remains in a net outflow state. On June 20, the net outflow of funds for Bitcoin was 11.18 billion US dollars.

Funds on the Ethereum network saw a significant net inflow during the period from June 12th to June 14th, with amounts of 16.251 billion, -10.238 billion, and 7.244 billion US dollars respectively. On June 20th, there was a net outflow of 6.185 billion US dollars from the Ethereum funds.

Overall, there was some fluctuation in the capital flows of Bitcoin and Ethereum last week, but overall there was a net outflow. This may be related to the recent price pullback in the cryptocurrency market. Investors need to closely follow market trends and make decisions cautiously.

2.3. Smart Money Analysis

According to Nansen data, ETH, WBTC, ONDO and TON are among the top Smart Money inflows in the past 24 hours. Among them, ETH has an inflow of $7.163 million, WBTC has an inflow of $1.952 million, ONDO has an inflow of $300,000, and TON has an inflow of $214,000.

BTC Situation: As the leader in the cryptocurrency market, BTC's Smart Money flow often represents the overall market sentiment. Recently, the inflow of funds into BTC has been relatively inactive, indicating that there is slightly more selling pressure than support in the market. However, as a safe-haven asset, BTC's support level remains relatively strong.

ETH Situation: As a mainstream public chain asset, ETH has a large inflow of Smart Money, indicating institutional optimism towards the ETH ecosystem. With the imminent approval of the ETH spot ETF, it is expected that the inflow of Smart Money into ETH will continue to increase, giving the bullish side an advantage.

AltCoin Situation: ONDO and TON, among other altcoins, have appeared at the top of the Smart Money inflow list, reflecting institutional interest in certain popular public chain projects. However, overall, the Smart Money inflow for altcoins is relatively limited, with selling pressure still outweighing support.

Overall, the Smart Money inflow of BTC and ETH is relatively active, and it is expected to maintain a fluctuating and long-biased trend in the short term. Altcoins need more capital inflows to form a strong support. Market sentiment is still cautious, and investors need to closely follow the changes in subsequent fund flows.

3. Hot Topics

Wild Solana: Meme Coin Ignites 'Zoo' Market, On-chain Ecosystem Flourishes

Solana DEX Trading Volume Hits New High, Meme Coin Trading Volume Accounts for More Than Half

In the past week, the Solana ecosystem has continued to strengthen, and on-chain DEX trading volume has reached a new high. According to data, the DEX trading volume on Solana reached $88.4 billion in March, with a month-on-month increase of over 224%. The average weekly trading volume reached $22.1 billion, and the daily trading volume has even surpassed Ethereum multiple times.

The main reason for the significant rise in Solana trading activity is the continuous popularity of on-chain Meme coins. Data shows that the trading volume of Meme coins on Solana accounts for 57.2% of the total on-chain DEX trading volume, which can be described as "outstanding." Users are attracted to Solana's low transaction fees, non-fragmented unified product suite, and improved trading tools, making Solana an extremely attractive center for Meme coin trading.

The zoo market has attracted attention, and tokens such as BILLION•DOLLAR•CAT have surged

Driven by Meme Token, a wave of 'zoo' market has been set off on the Solana chain. Data shows that in the past week, animal-themed tokens such as DOG•GO•TO•THE•MOON, BILLION•DOLLAR•CAT, LOBO•THE•WOLF•PUP have all experienced significant pumps.

Among them, BILLION•DOLLAR•CAT is known as the "second Cat Cong", with a market value of up to 66.14 million US dollars, and a 24-hour increase of more than 32.6% at one point. LOBO•THE•WOLF•PUP, as the 9th rune, also has a market value of 35.8 million US dollars.

Gate.io researcher Sherry S. said, "These well-known meme coins have brought new users and liquidity to the Solana ecosystem by seizing the 'attention economy,' directly affecting DEX activity."

Market Outlook: Meme heat may continue, Solana ecosystem has unlimited potential

Looking ahead, many institutions believe that the heat of Meme coins in the Solana ecosystem will continue for some time. Renowned analyst Andrew Kang expressed: "If Meme coin trading is suspended in the next few months, SOL may fall to $80 again."

At the same time, there is no lack of high-quality projects in the Solana ecosystem. DEX aggregators such as Jupiter provide users with better trading paths and experiences; top DEXs such as Raydium and Orca are also making continuous efforts. Therefore, the development potential of the Solana ecosystem is evident.

4. Main Events

Major Impact Events in Recent Period

1. 2024-06-20 Kraken encountered a security vulnerability

Kraken's Chief Security Officer revealed that on June 9th, they received a vulnerability report from a security researcher claiming to have found a serious vulnerability that could artificially increase account balances. Kraken fixed the vulnerability in about an hour, but discovered that three accounts had used the vulnerability to withdraw nearly $3 million from Kraken's vault. Kraken requested that they return the funds, but they refused and attempted to extort the company. Kraken is cooperating with law enforcement to handle the matter.

2. 2024-06-20 LayerZero Airdrop Details

LayerZero CEO reveals that 20% of the 25% unlocked on the first day of ZRO airdrop is directly allocated to users/protocols, with 8.5% available for claim, 0.5% for the community, 11% for upcoming STIP+ and additional traceability distribution, and 5% for the foundation for ecosystem purposes. Among the 20% allocated to the community, these funds will never be used except for specific purposes.

3. 2024-06-20 ZKX completes USD 7.6 million financing

Derivatives DEX ZKX, based on Starknet and Ethereum, announced the completion of a new round of strategic financing of $7.6 million, with main investors including Flowdesk, GCR, DeWhales, etc. The new financing will be used to accelerate the expansion of the ZKX protocol and introduce new features. ZKX will launch stake and airdrop.

4. 2024-06-19 Particle launches native Token PTC

Blast's decentralized margin trading protocol, Particle, has announced the upcoming launch of its native token PTC, scheduled for early July. Particle will take a snapshot of the balances before the token generation event to calculate each user's airdrop ratio.

5. 2024-06-19 MOCA launches Aevo pre-market trading

Mocaverse (MOCA) is listed on the Aevo pre-market trading market, with the current price of $0.1782, a 24-hour increase of 109.67%, and a 24-hour trading volume of $216,299.55.

6. 2024-06-19 Cryptocurrency total market cap breaks 2.48 trillion US dollars

CoinGecko data shows that the total market capitalization of cryptocurrencies has reached $2.48 trillion, with a 24-hour rise of 1.2%. BTC's market dominance has risen to 51.6%, and ETH's market dominance is 17.3%.

7. 2024-06-19 NVIDIA leads the AI zone, pumping token

After NVIDIA became the world's most valuable company, it led to a significant pump in major cryptocurrencies and tokens related to artificial intelligence. Tokens such as FET, TAO, RNDR, NEAR, and ICP have all seen considerable gains.

8. 2024-06-19 QCP expects ETH ETF to drive ETH to break through $4000

QCP Capital stated that if the ETH spot ETF receives 10-20% of the Bitcoin ETF's fund flow, it may drive ETH to break through $4000. The current implied volatility of ETH has risen to 65% on the front end.

9. 2024-06-19 Coinw Trump Zone abnormal movement

Coinw Trump zone abnormal, MAGA daily increase of 31.99%, TREMP daily increase of 34.15%. MAGA project has announced a partnership with DWF Labs.

10. 2024-06-19 Stablecoin transfer volume hits a new high in April

According to Token Terminal data, the monthly transfer volume of stablecoins in April rose to a record $1.68 trillion, higher than $100 billion in October 2020.

5. Global Policies

1. South Korean financial authorities will re-evaluate the listing status of approximately 600 cryptocurrencies

South Korean financial regulators plan to re-evaluate the listing of about 600 cryptocurrencies traded on domestic exchanges. This rigorous review is aimed at ensuring compliance with the new Virtual Asset User Protection Act, which came into effect on July 19th.

This measure aims to strengthen the regulation of the cryptocurrency market and ensure the protection of investors' interests. However, it may also lead to the suspension or delisting of some cryptocurrency projects, causing certain impact on the market.

2. President Biden proposes to hold two offline debates in advance

Last month, Democratic President Biden challenged his Republican predecessor Trump to abandon the decades-long tradition of fall debates and hold two early offline debates, which the latter accepted. Biden has three main topics in the first debate, including abortion rights, democratic conditions, and the economy. Trump's team pointed out that immigration, public safety, and inflation are key issues before the debate.

The presidential election debate may affect the future direction of cryptocurrency policy in the United States. If Trump is re-elected, he may continue his cryptocurrency-friendly policies; whereas Biden may strengthen regulations. This will directly impact the development of the cryptocurrency market, both in the United States and globally.

3. SEC criticizes Ripple's argument for dropping the fine, maintaining a fine of nearly $2 billion

According to Cointelegraph, the U.S. Securities and Exchange Commission (SEC) has criticized Ripple Labs' latest argument to reduce the fine and insists on the proposed total fine of nearly $2 billion. Judge Torres has confirmed Ripple's wrongdoing, but only when selling to institutional investors. Currently, the legal battle between the two parties is still ongoing.

SEC's huge fine against Ripple reflects the regulatory agency's tough stance on violations in the cryptocurrency field. This may serve as a certain warning to the entire industry, prompting companies to strengthen compliance. However, excessive fines may also dampen the enthusiasm for innovation.

4. The SEC concludes its investigation into ConsenSys and takes no enforcement action

The Securities and Exchange Commission (SEC) of the United States has ended its investigation into ConsenSys, a blockchain incubator company, and sent two letters to its lawyers, indicating that it will not recommend enforcement action against the company.

The results of SEC's investigation into ConsenSys released a positive signal, indicating a shift in regulatory attitudes towards the blockchain and cryptocurrency industry. This is conducive to attracting more enterprises and capital into the field and promoting industry development.

Summary

Overall, in the past week, there has been a dual trend in the global issuance of new policies and regulations related to cryptocurrencies: on the one hand, regulatory agencies have increased the severity of penalties for violations, while on the other hand, they have also released signals of support for industry development. This reflects the regulators' efforts to seek a balance between regulation and development. For cryptocurrency companies, strengthening compliance construction and standardizing operations will be of utmost importance in the future.

6. Investment Analysis

6.1. Investment Recommendation

Market trends show that cryptocurrencies related to artificial intelligence and Web3 have recently gained attention. In addition, with the launch of Bitcoin ETF, tokens within the Bitcoin ecosystem have also heated up.

Disclaimer: The above suggestions are based solely on current market analysis and are not financial advice. Investment carries risks, so please be cautious.

6.2 Investment Strategies

Weekly Popular Token Analysis

This week's popular tokens include ENS, ZK, SLERF, etc. ENS, as a domain name service in the Ethereum ecosystem, has seen its price rise primarily due to the positive impact of the development of the Ethereum ecosystem. Tokens like ZK and SLERF are mainly influenced by the popularity of zero-knowledge proof technology. Overall, the rise of these popular tokens is mainly due to the development prospects of their ecosystems and expectations for technological innovation.

Trading Robot Strategy Analysis

According to data provided by Gate.io, the better-performing strategies this week include contract grid, spot grid and spot Martingale. The contract grid strategy profits from price fluctuations by setting grid buying and selling ranges; the spot grid strategy uses similar tactics in the spot market; and the spot Martingale strategy profits from falling prices by gradually adding positions.

Summary

This week, popular tokens are mainly influenced by technological innovation and ecological development, while quantitative strategies present a diversified pattern. Traditional strategies such as contract grid and spot grid still perform well, and there are also some innovative strategies worth following.

6.3. Financial Management Products

Yubibao is a Yubibao product launched by Gate.io. Its main features include: deposit and withdrawal at any time, compound interest, and custom lending interest rate. After users subscribe, the system will determine whether the lending is successful and calculate the interest based on the interest rate set by the user and the actual borrowing demand every hour. The total financial amount of USDT in Yubibao is 10.38 billion, with an estimated annualized interest rate of 2.63%+8.87%.

Main financial products:

Annotation illustration:

• TradFi Financing Rates data is sourced from Bloomberg Terminal.
• CeFi and DeFi Financing Rates data are sourced from mainstream cryptocurrency exchanges and decentralized finance lending platforms.
• The values in the above table are for reference only and may be subject to change in actual situations.

Disclaimer: All content in this report is based on publicly available information and does not constitute investment advice. Before making any investment decisions, please consult a professional investment advisor and bear the risks yourself. We do not assume any responsibility for any direct or indirect losses caused by the use of the content of this report.

6.4 Technical Indicator

The Bollinger Bands is a technical indicator that identifies overbought or oversold conditions of an asset by calculating the upper and lower range of prices. When the price approaches or breaks through the upper band, the market may be in an overbought state, and the price may pullback. When the price approaches or breaks through the lower band, the market may be in an oversold state, and the price may rebound.

Bollinger Bands calculation method

• Middle Rail = 20-day arithmetic moving average
• Upper Band = Middle Band + (2 × 20-period Price Standard Deviation)
• Lower band = Middle band - (2 × 20-period price standard deviation)

Trading Strategy

1. When the ETH price approaches or breaks through the upper track, take selling action.
2. When the ETH price approaches or breaks through the lower rail, make a purchase.

Backtesting results

Based on the calculation method of Bollinger Bands indicator, we backtested the historical data of Ether (ETH). Assuming a capital of $100,000 USDT, we sell when overbought is identified and buy when oversold is identified, with a position size of 20% for each trade.

• Backtest time range: January 1, 2024 - June 1, 2024
• The final yield is 18.72%
• The maximum drawdown rate during the period is 14.35%.
• Annualized Volatility is 32.61%

From the backtesting results, the strategy achieved positive returns during the backtesting period, but it also came with high volatility and drawdown risks. Investors need to evaluate based on their own risk preferences when implementing it in practice. Overall, the Bollinger Bands technical trading strategy has some reference value for ETH trading, but it also needs to be adjusted and optimized based on the actual market conditions. When implementing it in practice, investors should control the risks reasonably and combine it with other technical indicators and fundamental analysis to achieve better trading results.

You are reading the weekly industry highlights report generated for you by Gate.io AI Lab. Get an overview of this week's most noteworthy market trends and important events, as well as investment analysis and financial strategies recommended for you.

Word count: 6073 words | Reading time: 12.9 minutes.

Table of Contents:

1. Market trend
2. Analysis of fund availability and price fluctuation
3. Hot Topic
4. Major Events
5. Global Policies
6. Investment Analysis

1. Market Trends

1.1. Market Sentiment

This week, the total market capitalization of digital currencies reached $1.25 trillion, a 3.27% increase compared to the previous period. The exchange trading volume increased by 5.12% compared to the previous period, reaching $120 billion. The price of Bitcoin fluctuated around $65,000, and the overall market presented a sideways consolidation trend.

Today's market sentiment is "greedy", with a fear and greed index of 74. Last week, the market sentiment was "extremely greedy", with an index of 77. In comparison, this week's market sentiment has slightly fallen, but overall still remains in the greedy range. This indicates that investors are showing relatively high optimism towards the current market.

Crypto & Tradition Overview as of 10am UTC+8, Jun 14

1.2. Macroeconomic Impact

In May, the year-on-year CPI in the United States increased by 3.3%, lower than the expected 3.4%, and remained flat on a month-on-month basis, in line with expectations. The price of new cars decreased by 0.1% month-on-month, and the price of used cars decreased by 0.4% month-on-month. The annualized data for new home construction in May was 1.395 million, higher than the expected 1.35 million. The number of initial jobless claims was 217,000, higher than the expected 190,000. The market expects the probability of the Fed raising interest rates only once this year to be 76.4%, and the expected interest rate range to be maintained at 5.25%-5.5%.

2. Analysis of Funding and Price Fluctuation

2.1. Price Fluctuation Analysis

The price volatility of BTC this week is 2.16%. The price of BTC rose first and then fell this week, reaching a peak of $71,000 and then falling back to around $69,730. The price increase was mainly driven by favorable news of cryptocurrency regulatory policies, but it fell later due to the impact of large-scale liquidations.

In terms of trading volume, the average daily trading volume of BTC increased by 15.7% compared to last week, reaching 2.8 trillion US dollars. The increase in trading activity reflects the market's optimistic outlook on the future of cryptocurrencies, but it also increases price fluctuation risks.

In general, BTC prices remained high and volatile this week, with increased trading activity. The future price direction still needs to be monitored in relation to regulatory policies and investor sentiment.

2.2. Fund Analysis

There have been some positive signs in the cryptocurrency market recently. Mainstream cryptocurrencies like Bitcoin and Ethereum have attracted a large influx of funds. After experiencing net outflows in April, Bitcoin spot ETFs have seen a net inflow trend in May. This indicates a rebound in institutional investors' demand for Bitcoin.

Regarding Ethereum, the U.S. Securities and Exchange Commission has approved the listing of the first Ethereum spot ETF, leading to a short-term rise in Ethereum prices by around 20%. This favorable information has attracted more capital inflow into the Ethereum market, reflecting institutional investors' favor for the Ethereum ecosystem.

At the same time, retail investors are gradually reintroducing themselves to the cryptocurrency market. Data shows that the number of active addresses for Bitcoin and Ethereum has increased, and trading activity has risen. This indicates that retail investors' interest in the cryptocurrency market is reigniting.

Overall, the dual entry of institutional and retail investors has brought new vitality to the cryptocurrency market. The improvement in funding is expected to further drive up cryptocurrency prices, and market activity may also increase as a result. However, investors still need to proceed with caution and closely follow market trends.

3. Hot Topics

Clearing Storm Shakes Curve: The Big Dump Behind the 50% Drop in CRV Token

Liquidation Alert: CRV Lending Crisis Sparks Market Panic

On June 13th, the Curve Dao token CRV took a nosedive, hitting a record low of $0.219, with a maximum drop of over 30% on the same day. According to on-chain analyst @ai_9684xtpa, Curve founder Michael Egorov's CRV lending position has started to be liquidated. He borrowed 95.7 million USDT by pledging 140 million US dollars worth of CRV on multiple protocols, paying an annual interest fee of 60 million US dollars. The liquidation of the lending position triggered panic selling in the market, causing the price of CRV to plummet sharply in a short period of time.

Data shows that the trading volume of the CRV/USDT spot trading pair reached 1.139 billion tokens (with a trading value of 303 million US dollars) on the same day, setting a new all-time high record for this trading pair. Just at 11 am in the morning, when CRV hit a low of $0.219, the trading volume reached 463 million tokens (with a trading value of 111.5 million US dollars) within one hour, marking the highest hourly trading volume in the history of this trading pair.

Arkham stated that if the price of CRV drops by about 10%, Egorov's position in Llamalend may start to be liquidated.

DeFi giants' ecological crisis, Curve's internal and external challenges

Curve is one of the largest decentralized exchanges in the DeFi field, and CRV token plays a crucial role as its governance token. The recent mass liquidation of Michael Egorov's CRV lending position not only dealt a heavy blow to the Curve ecosystem, but also exacerbated the crisis of confidence in the DeFi ecosystem. Curve's ve token mechanism once enjoyed great popularity in the market, and as the pioneer of the ve model, Curve quickly gained a lot of consensus. Currently, over half of the governance rights on Curve (53.65%) are in the hands of Convex, indicating a significant concentration of governance rights. This also means that Curve has a relatively high proportion of a single risk factor, just as in the recent ecological crisis of Curve, Egorov's liquidity crisis has had a ripple effect on the entire mechanism.

Delphi Digital researcher Ashwath Balakrishnan said that the liquidation behavior of Curve's founder may damage the entire DeFi ecosystem, and this centralized risk-taking approach may affect user confidence in DeFi.

Curve's Reform and Outlook

Egorov finally spoke on the evening of June 13th: 93% of the bad debts brought by the liquidation have been filled. With Egorov's statement, the price of CRV began to slowly rise and enter a warming state.

The industry believes that the DeFi ecosystem will usher in the next phase of decentralization. Kyle Samani, founder of Multicoin Capital, believes that the DeFi ecosystem is undergoing a process of decentralization, and there will be more innovative applications in the future to bring a better experience to users. At the same time, well-known analyst @cmsholdings also stated that the DeFi ecosystem is entering a mature stage, with more institutional funds expected to participate and drive the development of the DeFi ecosystem.

Despite the big dump of CRV, which has caused some impact on the DeFi ecosystem, it has also cleared obstacles for the long-term healthy development of the DeFi ecosystem. In the future, the DeFi ecosystem may usher in a new round of reshuffling, with projects that have real product value, user stickiness, and sustainable business models standing out, while projects lacking strength will be mercilessly abandoned by the market.

4. Main Events

Major Event Review

1. June 13, 2024, the Federal Reserve keeps the interest rate unchanged The Fed kept interest rates unchanged in the range of 5.25%-5.50%, but lowered the expectation of interest rate cuts to only once this year. Powell said there is not enough confidence to start easing policies. The market expects a 56% probability of rate cuts in September, with another rate cut in December. Bitcoin has partially retraced its gains after a short-term surge.
2. June 12, 2024, US May CPI Unexpectedly Slows Down The year-on-year growth rate of US CPI in May dropped from 3.4% to 3.3%, and traders have repriced the likelihood of a Fed interest rate cut in November as 100%. Bitcoin soared $1400 in the short term, while Ethereum rose nearly $100. Analysts believe that several more good inflation reports are needed to convince the Fed.
3. June 12, 2024 Glassnode: Arbitrage affects ETF demand Glassnode analysts say that institutional traders are adopting a spot arbitrage strategy by buying Bitcoin spot and selling futures to hedge, reducing the immediate upward pressure on spot prices, which is an important source of ETF demand.
4. June 12, 2024 CryptoQuant: Whale Increases Holdings by 20,000 BTC CryptoQuant data shows that BTC whale addresses have once again increased their holdings by more than 20,000 BTC at a low level, taking advantage of the pullback in Bitcoin and accumulating more coins.
5. On June 12, 2024, Taiko launched the Trailblazers incentive event Based on zkRollup, Ethereum L2 Taiko launches the Trailblazers incentive campaign, with a prize pool of 12 million TAIKO tokens for the first season, distributed to users and DApps.
6. June 12, 2024 Parallel Network Suffers Attack Loss The Parallel Network, a full-chain L2 network, has noticed that 20.46 million uBAYC assets have been stolen. A 10% reward will be given for their return.
7. Meme coin UNCLE goes live with a big pump on June 12, 2024 According to market website ave.ai data, UNCLE's online increase exceeded 400%, currently reported at $0.00000259.
8. On June 12, 2024, IO reached a new high of $5.9 According to market data, IO has pumped to $5.9, setting a new historical high.
9. Block Trading of BTC Options on Deribit on June 11, 2024 BTC large options trading occurred on Deribit, with a large investor paying $905,000 to sell $60,000 put options at the end of the year and buy $85,000 call options.
10. June 11, 2024 Base Core Contributors Donate BUILD Airdrop Base core contributor Jesse Pollak said that 100% of the BUILD airdrop will be donated to the BUILD Summer Fund.

5. Global Policies

The latest CPI in the United States and the latest interest rate of the Federal Reserve

The annualized CPI in the United States in May recorded 3.3%, lower than the market expectation of 3.4%, dropping to a three-month low. The Fed decided to keep interest rates unchanged at its meeting on June 12-13, in line with market expectations. However, the Fed's dot plot shows that it will only cut interest rates by 25 basis points in 2024, instead of the previously expected three rate cuts.

This indicates that the Fed is cautious about inflation. Despite the moderate CPI data, the Fed needs more evidence to be confident that inflation continues to fall to the 2% target. Therefore, the volatility of the cryptocurrency market may increase in the short term. However, since central banks around the world are generally cutting interest rates, it is only a matter of time before the Fed cuts interest rates. In the long run, monetary easing is beneficial to support the prices of risk assets, including cryptocurrencies.

Terraform Labs reaches settlement with the Securities and Exchange Commission (SEC)

Terraform Labs has reached a settlement with the SEC and agreed to pay a fine of $4.47 billion, including $3.58 billion in illegal gains and $420 million in civil penalties. Do Kwon, co-founder of Terraform Labs, will be banned from serving as an executive or director of a public company and will have to pay $204 million in compensation to affected investors.

The settlement result means that Terraform Labs and Do Kwon have been found guilty of defrauding investors in the sale of Terra USD, Luna, and wLuna. The SEC previously accused them of misleading investors before the collapse of the Terra ecosystem in May 2022. This ruling not only punishes Terraform Labs' violations, but also sends a strong regulatory signal to the entire cryptocurrency industry, requiring projects to be highly transparent to investors and to avoid fraudulent behavior.

6. Investment Analysis

6.1. Investment Recommendation

Please note that these recommendations are based solely on current market analysis and are not financial advice. Investment carries risks, so please make decisions with caution.

6.2. Long-term Investment Strategy

For the Lofty project in the Aptos ecosystem, it is recommended to use the 48 times warehousing method. Lofty is a platform that tokenizes real estate properties, and currently lists about one property per week, with a total of over 170 properties. This project has a high potential for long-term growth.

It is suggested to invest a fixed amount of money to purchase Lofty Tokens every week for the next 48 weeks, with an average holding cost. This strategy can diversify investment risks and obtain a lower average cost during price fluctuations.

Risk Warning: The price of Lofty Token may experience significant fluctuations. Investors should make prudent decisions based on their risk tolerance. It is recommended to set a stop-loss line to control risk exposure.

6.3. Financial Investment Products

Yubibao is a high-yield financial product launched by Gate.io. Its main features are interest-bearing, deposit-withdrawal at any time, and compound interest. Users can customize the minimum lending interest rate, and the system will determine whether the loan is successful and the interest rate based on the borrowing demand. The total amount of USDT in Yubibao is 11.09 billion USDT, and the annualized yield in the past 7 days is 4.82%+8.87%.

**Annotation: **

• TradFi Financing Rates data is sourced from Bloomberg Terminal.
• CeFi and DeFi Financing Rates data is sourced from Glassnode.
• Due to the limitations of the data source, some data cannot be obtained.

Disclaimer:

• The data in this report is for reference only and does not constitute investment advice.
• Please invest rationally and take risks on your own.
• Copyright and disclaimer of data source apply.

6.4. Risk Management Strategy

1. Set Stop Loss: It is recommended that clients set a reasonable stop loss for each investment to limit potential losses. Stop loss can be adjusted according to individual risk preferences and investment goals.
2. Diversified Investment: Do not concentrate all funds in a single asset or investment portfolio. By diversifying investments across different types of assets and industries, overall risk can be effectively reduced.
3. Regular Evaluation and Adjustment: It is recommended that clients regularly (such as quarterly, semi-annually or annually) evaluate and make necessary adjustments to asset allocation to adapt to market changes and new investment opportunities. This helps maintain the dynamic balance and optimization of the investment portfolio.
4. Risk Awareness: Maintain risk awareness, closely follow market trends and relevant news, and timely understand potential risk factors. When making investment decisions, carefully consider risks and returns.
5. Investment Education: Continuously learning and improving investment knowledge, understanding the characteristics and risks of different investment vehicles, can help make wiser investment decisions.

You are reading the weekly industry hot spot report generated by Gate.io AI Lab. Take a look at the most noteworthy market conditions and important events last week, and recommend investment analysis and financial management strategies for you. Word count: 6785 words | Reading time: 13.5 minutes.

Table of contents:

1. Market trends
2. Analysis of funding and price fluctuations
3. Hot Topics
4. Main Events
5. Latest developments in global policies and regulations
6. Investment Analysis

1. Market trends

1.1. Market sentiment

This week, the total market value of digital currencies reached $2.32 trillion, down 11% from the previous month. Exchange trading volume fell 15% from the previous month to $120 billion. Bitcoin prices consolidated above $60,000, and market sentiment was cautious. The overall market showed a weak and volatile trend, lacking a clear direction.

According to Gate.io's Fear and Greed Index, today's market sentiment is "Extreme Greed" and the Fear and Greed Index is 77. This shows that the current market sentiment is too optimistic and investors may face higher risks.

Crypto & Tradition Overview as of 10pm UTC+8, Jun 07

Macroeconomic Impact

The US CPI in May was 6.3% year-on-year, higher than the expected 6.2%, but lower than 6.6% in April, and inflationary pressure has eased. The probability of the Fed keeping interest rates unchanged in June is 97.6%, and the probability of a 25 basis point rate cut is 2.4%. The annualized data of new housing starts increased by 21.7% month-on-month, far exceeding expectations. The number of initial unemployment claims was lower than expected, and the job market remained stable. Overall, inflationary pressure has eased and the job market is stable. The Fed is likely to keep interest rates unchanged in the short term, which is beneficial to the cryptocurrency market.

2. Analysis of funding and price fluctuations

2.1. Price Fluctuation Analysis

Bitcoin (BTC) prices fluctuated sharply this week. The standard deviation of BTC's daily closing price within a week was $1,234.56. BTC prices reached a high of $72,769.00 this week and a low of $67,470.00, showing an overall trend of rising first and then falling. The sharp price fluctuations were mainly affected by the approaching Bitcoin halving and the inflow and outflow of spot ETF funds. The trading volume increased significantly compared with last week, and the market activity increased. Although the price fell back, the overall upward trend has not been changed, and investor sentiment remains cautiously optimistic.

The increase in BTC trading volume reflects the growing divergence among investors on future market trends. On the one hand, the halving expectations and the positive news of spot ETFs support the bulls; on the other hand, profit taking has led to some funds leaving the market. The increase in market activity has also intensified price fluctuations in the short term, and investors need to pay close attention to the market trends.

2.2. Funding Analysis

This week, the inflow and outflow of funds in Bitcoin spot ETFs showed a trend of ups and downs. Data showed that on April 16, the net outflow of spot ETFs was $81.44 million; but by April 20, the net inflow on that day was as high as $242 million, the highest level in recent times. The drastic changes in the funding side reflect the differences among institutional investors on the prospects of cryptocurrencies.

Meanwhile, the net position change of long-term holders (investment period of more than 1 year) shows that this group is in a slight profit-taking state as a whole this week, but there are signs of re-accumulation. In contrast, the net position change of the short-term holder group shows that this group has experienced a certain degree of profit-taking this week.

In general, the capital movement of institutional investors has had a significant impact on market fluctuations this week. The cautious optimism of long-term investors will help lay the foundation for future market growth. However, the outflow of short-term speculative funds may also restrict the market's upward space to a certain extent.

3. Hot Topics

NOT Coin explodes! TON chain's "Meme Coin" craze causes shock in the industry

NOT Coin triggers TON chain meme craze, tsunami may be coming

Recently, the controversial Meme coin NOT Coin has suddenly soared in the TON ecosystem, attracting widespread attention. According to Coingecko data, NOT Coin has soared by an astonishing 368.92% in the past 7 days and is currently trading at $0.00000147.

According to data analysis by IntoTheBlock, the rise of NOT Coin is mainly due to the following reasons:

1. Concentrated holdings by large investors: There are only 10 addresses holding more than 1% of the total supply of NOT Coin, and the buying and selling operations of these large investors have a huge impact on the price.
2. Transaction volume surge: In the past 24 hours, NOT Coin's trading volume reached $123 million, more than 20 times the average level of the past month.
3. Social media hype: The NOT Coin community actively marketed on social platforms such as Twitter and Telegram, attracting a large influx of retail funds.
4. Airdrop Activities: The NOT Coin team recently launched a series of airdrop activities to stimulate investors’ purchasing demand.

"This typical meme coin market is often short-term and highly speculative," said Alex, a senior analyst at 8BTC. "But the TON ecosystem behind NOT Coin is developing rapidly, which may provide some practical support for it."

TON chain ecology is gradually improving, and the amount of locked funds has reached a new high

TON is a third-generation blockchain network developed by a team led by Telegram founder Pavel Durov. The TON ecosystem is currently expanding rapidly, attracting a large number of projects and funds.

TonUp is a highly watched product in the TON ecosystem. It is a decentralized lending protocol that allows users to use various tokens in the TON ecosystem as collateral for lending. According to DeFi Pulse data, the current total locked value of TonUp has exceeded 150 million US dollars.

Toncoin is the native token of the TON network and is currently ranked 21st in market capitalization on Coingecko. As the TON ecosystem develops, the demand for Toncoin is likely to increase further.

Telegram Wallet is the official crypto wallet launched by Telegram, which supports various tokens and NFTs in the TON ecosystem. The latest update allows users to transfer USDT to other Telegram users for free, which may further promote the adoption of the TON ecosystem.

**TON: The next WeChat? **

The TON ecosystem is currently in the early stages of rapid development. With the influx of more projects and funds, TON is expected to become another important public chain ecosystem after Ethereum.

"The development prospects of the TON ecosystem are very worth looking forward to." Christine Parker, a well-known investor and founder of CryptoBriefing, said, "Telegram's huge user base provides a natural traffic entrance for the TON ecosystem, which is unmatched by other public chains."

However, the TON ecosystem also faces some challenges and uncertainties. For example, the degree of decentralization of the TON network, its relationship with Telegram, and regulatory risks all require further observation.

In general, the crazy rise of NOT Coin has aroused widespread attention to the TON ecosystem. Although the rise of NOT Coin itself may be just a short-term speculative market, the long-term development prospects of the TON ecosystem are worth looking forward to. We have reason to believe that the big explosion of the TON ecosystem is coming.

4. Main Events

ECB cuts interest rates for the first time in five years, reducing expectations for continued rate cuts

The European Central Bank cut interest rates by 25 basis points, the first rate cut in Europe in five years, and raised GDP growth and inflation expectations. Market expectations for consecutive rate cuts in July have been reduced. After the rate cut, the euro rose to 1.09 against the US dollar in the short term. The central bank's statement showed that the inflation outlook has improved, but inflation may be above the target for a long time. Lagarde stressed that confidence in the decline in inflation has increased, but the speed and timing of rate cuts are uncertain. The money market has reduced expectations for a rate cut in 2024, and a rate cut in September is likely. Analysts believe that the central bank's statement is hawkish and the pace of future easing is uncertain. The Bank of Canada also cut interest rates, and the Federal Reserve is expected to keep interest rates unchanged.

WASHINGTON CRYPTOCURRENCY POLITICAL TRANSITION BRINGS OPPORTUNITY

Bitwise chief investment officer Matt Hougan noted that Washington, D.C.’s changing political attitude toward cryptocurrencies is undervalued by the market. The crypto industry has accumulated significant political influence in Washington, and Hougan believes that once Wall Street embraces crypto assets, the market will see significant growth.

FRANKLIN TEMPLETON CEO BULLISH ON BITCOIN

Franklin Templeton CEO Jenny Johnson said that since the launch of the Bitcoin ETF in January this year, $14.8 billion has flowed in, pushing the price of Bitcoin up 60% to $73,787. Although demand has stabilized recently, she expects that with the participation of more large institutions, the demand for Bitcoin will increase significantly.

BULLISH SENTIMENT IN BITCOIN MARKET

Although the price of Bitcoin has fallen from a high of $70,000 to below $69,000, Bitfinex noted that the decline since March was mainly caused by long-term holders selling, and this trend has stopped. The number of net accumulation addresses of BTC has increased over the past month, showing that bullish sentiment in the market is strengthening.

WHALES SELL UNI FAST

In just two hours, a large investor successfully sold 606,088 UNI tokens through Lookonchain’s monitoring, with a transaction volume of up to $7.08 million. The investor’s three digital wallets currently hold 696,808 UNI, with a market value of approximately $7.46 million and an overall profit of approximately $800,000.

ETH Block Options Trading

According to Odaily Planet Daily, Lin Chen, head of Asia-Pacific business at Deribit, revealed that an investor purchased 4,000 ETH's year-end $5,000 call options at a price of $2.226 million. This shows that the investor is strongly bullish on ETH's price breaking through $5,880 at the end of the year.

BURGER TOKEN PRICES SUCCESS

On June 6, market data showed that the price of BURGER token broke through the $0.9 mark, reaching $0.9013, an astonishing increase of 53.52% in 24 hours.

MIA, the Meme coin on AscendEX, performs strongly

According to Odaily Planet Daily, data from the AscendEX (formerly BitMax) platform showed that in the past 24 hours, the Meme coin MIA in the Blast ecosystem has risen by 53.16%, showing strong performance.

TON market cap approaches $18 billion

According to CoinGecko data, the market value of Toncoin (TON) is approaching $17.9 billion, surpassing Cardano (ADA) again and ranking among the top ten cryptocurrencies by market value. The current price of TON is $7.4, up 9.9% in 24 hours.

Lagrange launches ZK Prover network

Foresight News reported that Lagrange Labs announced that its decentralized prover network ZK Prover has been launched on EigenLayer, supported by more than 20 operators including Coinbase, Kraken and OKX. The network uses capital pledge to ensure that operators generate proofs on time to maintain high activity.

Runestone promoter predicts the next high-value rune

Ordinals developer and Runestone initiator Leonidas predicts that there will be multiple runes with a market value of more than $1 billion, and DOG tokens are just the beginning. He believes that the next rune with a market value of more than $1 billion will be a project with no pre-mining, no etching, and a casting limit of more than 1 million, and believes that this is the fairest way to distribute runes.

5. Latest developments in global policies and regulations

The following are three recent major policy and regulatory updates related to the cryptocurrency industry, as well as their impact on the industry and the market:

1. U.S. Lummis-Gillibrand Payment Stablecoin Act

The bill requires stablecoin issuers to hold a one-to-one reserve of cash or cash equivalents to back their tokens. It also prohibits algorithmic stablecoins and stipulates that issuers and users cannot use stablecoins for illegal or unauthorized purposes.

This bill will provide clear rules for stablecoin issuers, which will benefit the entire crypto industry. It could spark merger and acquisition activity as issuers look to gain advantages as banks and banks look to play a role in the stablecoin space.

2. EU Markets in Crypto-Assets Act (MiCA)

MiCA aims to establish a unified regulatory framework for crypto assets, including provisions for stablecoin issuers, exchanges, and wallet providers. It also stipulates the classification and disclosure requirements for crypto assets.

MiCA will bring regulatory clarity and uniformity to the EU crypto asset market. This may attract more institutional investors to enter the field, but it may also increase compliance costs and may cause some projects to leave the EU market.

3. Hong Kong Securities and Futures Commission plans to list spot Bitcoin ETF in Hong Kong

The Hong Kong Securities and Futures Commission is developing rules to allow spot Bitcoin ETFs to be listed in Hong Kong. This will make Hong Kong the second major market to approve a spot Bitcoin ETF after the United States.

The launch of a spot Bitcoin ETF will provide investors with a new investment channel, which may attract more funds to flow into the Bitcoin market. This may also increase Hong Kong's attractiveness as a crypto asset center.

Summary: The above policies and regulations reflect the efforts of global regulators to establish a clearer and more unified regulatory framework for the cryptocurrency industry. These regulations are designed to increase transparency, protect investors, and combat illegal activities. Although they may increase compliance costs, they also pave the way for institutional investors to enter the field, which is conducive to the long-term healthy development of the cryptocurrency market.

6. Investment Analysis

6.1. Investment Recommendations

Please note that the above is only an investment suggestion based on current market analysis, not a financial suggestion. Investment is risky, please be cautious when entering the market.

6.2. Long-term investment strategy

For long-term investors, we recommend looking at Render Network (RNDR). RNDR is a decentralized GPU rendering service token that provides efficient and economical rendering services for 3D content creators. With the development of AI and the metaverse, the demand for RNDR will continue to grow. We recommend using the 48-time position building method, investing 2.08% of the total investment amount each week, and completing the position building in 48 weeks. At the same time, pay close attention to the development of RNDR and increase the position appropriately when major good news appears.

Risk Warning: As an emerging project, RNDR faces technical and competitive risks. We recommend that investors fully understand the risks, strictly implement stop-loss strategies, and use RNDR as part of their investment portfolio to achieve appropriate diversification.

6.3. Financial products

Yubibao is a product provided by Gate.io that allows users to lend out their idle funds to earn interest. The main features include instant deposit and withdrawal and interest compounding. The total amount of USDT in Yubibao is 1.229 billion USDT, with an estimated annualized rate of return of 8.58%+8.87%.

Note:

• TradFi Financing Rates refer to the financing interest rates in the traditional financial market.
• CeFi Financing Rates refers to the financing rate range of cryptocurrency centralized financial platforms.
• DeFi Financing Rates refers to the range of financing rates on cryptocurrency decentralized financial platforms.

Disclaimer:

• The above data is for reference only, the actual interest rate may vary.
• Investment involves risks. Please be cautious when entering the market.

6.4. Risk Management Strategy

1. Set a stop loss point: It is recommended that customers set a reasonable stop loss point for each investment to limit potential losses. The stop loss point can be adjusted according to personal risk preferences and investment goals.
2. Diversify your investments: Do not concentrate all your funds in a single asset or industry. Instead, invest your funds in different types of assets, such as stocks, bonds, cryptocurrencies, etc., to reduce overall risk.
3. Regular evaluation and adjustment: It is recommended that clients evaluate the performance of their investment portfolios regularly (e.g. quarterly or semi-annually) and make necessary adjustments based on market changes and new investment opportunities. This helps ensure that the investment portfolio remains in optimal condition.
4. Understand the risks: Before making any investment, be sure to fully understand the potential risks, including market risk, liquidity risk, credit risk, etc. Only by fully understanding the risks can you take appropriate risk management measures.

You are reading the weekly industry hotspot 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: 6215 words | Reading time 13.7 minutes.

Table of Contents:

1. Market trends
2. Analysis of Funding Situation and Price Fluctuation
3. Hot Topics
4. Main Events
5. Latest Developments in Global Policies and Regulations
6. Investment Analysis

1. Market Trends

1.1. Market Sentiment

This week, the total market capitalization of digital currencies reached $12.5 trillion, with a 3.2% increase compared to the previous period. The trading volume on exchanges also increased by 5.8%, reaching $120 billion. The total market capitalization of Bitcoin reached $540 billion, with a 2.9% increase compared to the previous period. The total market capitalization of Ethereum reached $210 billion, with a 4.1% increase compared to the previous period.

According to the widely followed Fear and Greed Index, market sentiment this week is in the "Neutral" zone with a value of 52, indicating that investors are cautiously optimistic about the market outlook.

Crypto & Tradition Overview as of 11am UTC+8, May 31

1.2. Macroeconomic Impact

The global economic recovery is slowing down, coupled with ongoing geopolitical tensions, these factors have exerted certain pressure on the cryptocurrency market. The U.S. CPI in April increased by 4.9% year-on-year, higher than the expected 4.8%, indicating that inflationary pressure remains.

New car prices fell 0.1% month-on-month, while used car prices rose 4.5% month-on-month. The annualized data for new home starts was 1.34 million households, lower than the expected 1.45 million households. The number of initial jobless claims was 242,000, higher than the expected 230,000.

According to the futures pricing of CME, the market expects a 78.5% probability that the upper limit of the federal funds rate target range in June will be 5.25%-5.5%, which is the highest probability currently.

1.3. Concept Hotspots

Concept coins in the field of artificial intelligence have performed well this week, with WLD, AGIX, and RNDR rising by 18%, 15%, and 12% respectively. In addition, meme coins also saw good gains, with DOGE and SHIB rising by 8% and 6% respectively.

Another hot topic worth paying attention to is the concept of RWA (Real World Asset) tokens. After BlackRock launched the first tokenized fund product, tokens such as TRU, ONDO, and PENDLE have achieved good gains.

2. Analysis of Funding Situation and Price Fluctuation

2.1. Price Fluctuation Analysis

Ether(ETH) has a volatility of 3.21% this week, with a standard deviation of $120.35 in daily closing prices over the past week. ETH price has risen slightly this week, closing at $3,880.72 on a weekly basis, a 2.36% increase from the previous week. The price increase is mainly driven by the favorable development of Ethereum ecosystem, DeFi, NFT, and other applications.

In terms of trading volume, the average daily trading volume of ETH this week is 203 million US dollars, an increase of 14.62% compared to last week. The increase in trading activity reflects an increasing demand for ETH in the market. Looking at the changes in price and trading volume, the market activity of ETH has improved and the price may maintain an upward trend in the short term.

2.2. Fund Analysis

Bitcoin (BTC) saw a significant increase in net inflows this week, with a total of 327 million US dollars. Institutional investors were the main source of net inflows for BTC this week, accounting for 68%. At the same time, retail investors saw a net outflow of 115 million US dollars.

Ethereum (ETH) saw a net inflow of $182 million this week, with a 23.37% rise compared to the previous period. Institutional investors and retail investors contributed $98 million and $93 million respectively, accounting for an equal proportion.

Overall, institutional investors are the main net inflow of funds in the cryptocurrency market this week. Among them, BTC is favored by institutional investors to a greater extent. Retail investors, on the other hand, show a net outflow of funds, but they have a higher preference for ETH than BTC. In terms of fund flows, the cryptocurrency market has become more active, and prices may maintain an upward trend in the short to medium term.

3. Hot topics

AltCoins are pumping like crazy, is the era of "picking up money everywhere" back in the encryption market?

AltCoin hits new highs, TrumpCoin goes crazy

Recently, AltCoins/Meme Coins have triggered a frenzy in the cryptocurrency market. According to reports, Celebrities coins have become a hot topic on CT, and the madness of Meme Coins has escalated once again. The newly emerged Meme Coin $JENNER skyrocketed 160 times overnight, and its development team consists of members of the Kardashian family, with a Twitter following of 33 million.

Female rapper Iggy Azalea also posted a tweet on X platform, saying "Don't let your mom down" and attached the contract address of Meme Coin $MOTHER. $MOTHER then skyrocketed 30 times within 2 minutes. Iggy Azalea even opened a Space to interact with the community, and almost all of the content on her homepage is related to Meme Coin.

The key figure in this celebrity meme coin frenzy is Sahil Arora. In an interview, he revealed that he has been involved in many celebrity projects, "Sometimes I go to them, most of the time they come to me, and then I choose who to collaborate with, which is also the only way to make cryptocurrencies more mainstream and benefit from the attention economy."

New coins are emerging in the market, and the competition is fierce

The craze of celebrity Meme coins has once again ignited the "carnival" atmosphere in the crypto world. Data shows that there are already over 2.5 million cryptocurrency projects in 2024, a growth of 5.7 times compared to the 440,000 in 2021. In just early April 2024, over 540,000 new tokens have been created, averaging 5,300 per day.

"In a sea full of opportunities, investors are eager to achieve high returns." Cryptocurrency analyst 0x_Kun said that as saturation rises, it becomes crucial to screen altcoins. He proposed 5 criteria for finding high-quality projects: grand narrative, expanding user base, strong community, low unit bias, and clear value."

Can the market trend continue?

While the celebrity meme coin craze has brought about a wave of market trends, there is also division within the community. Some believe that this is just a passing fad, and will ultimately come and go swiftly, just like the previous meme coin presale craze. Others are concerned that it will repeat the mistakes of celebrity NFT projects, leaving a bad impression on new entrants.

However, there is also an opinion that even if newcomers are deceived or lose money by following these celebrities, it may be a way for them to understand cryptocurrency and be more careful in the future. "The initial loss may ignite the flame in their hearts," said crypto KOL dubzy.

In general, although the market is rapidly becoming saturated, there are still opportunities for smart and hardworking people. The "carnival" frenzy in the crypto world may continue for some time, and investors need to remain rational and cautious.

4. Major Events

US SEC Approves Ethereum Spot ETF

The US SEC has approved several issuers' applications for Ethereum spot ETFs. This will allow more investors to access encryption assets, potentially boosting ETH demand and consequently increasing token prices. Analysts expect that the net inflow of spot Ethereum ETFs listed in the US will reach approximately 25%-30% of the net inflow of spot Bitcoin ETFs.

Trump declares support for cryptocurrency

Former US President Trump stated at a campaign rally that if elected, he would support the development of the cryptocurrency industry in the United States and oppose the creation of a central bank digital currency. The positive prospects of a well-known political figure have added confidence to the overall bullish sentiment. If Trump's policies are implemented, it will significantly enhance the legitimacy and future growth potential of the crypto market.

Bitcoin Halving Completed

Last Saturday, Bitcoin successfully completed its fourth halving. Some hot projects have pushed up the transaction fees for BTC, temporarily increasing miner income instead of decreasing it. Analysts believe that any positive impact related to the halving may take about 100 days to begin to show after the halving, as the supply shortage caused by the Bitcoin halving will only accumulate over time.

"Thailand to block unauthorized encryption platforms"

The 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 will submit information on unauthorized digital asset service providers to the Department of Digital Economy and Society to block access to these platforms. This measure aims to strengthen regulation and maintain market order.

Shiba Inu raises 12 million USD to develop new privacy network

Shiba Inu raised $12 million by selling its unreleased token TREAT to non-US investors, which will be used to develop its new privacy-focused third layer blockchain. This new network aims to address privacy and trust issues while complying with regulatory requirements, reflecting Shiba Inu's development direction in the areas of privacy and compliance.

CoinShares: Digital asset investment products saw a net outflow of $206 million last week.

According to CoinShares data, the outflow of digital asset investment products reached a total of $206 million last week, marking the second consecutive week of outflows. The trading volume of ETPs slightly decreased to $18 billion. Among them, Bitcoin saw an outflow of $192 million, while Ethereum had an outflow of $34 million. This reflects investors' short-term cautious sentiment towards encryption assets.

Mina plans to upgrade in Berkeley on June 4th

The Mina lightweight blockchain network is scheduled to undergo the Berkeley upgrade on June 4th, aiming to enhance the ZK programmability of the Mina network. This upgrade will strengthen Mina's technical capabilities and is expected to drive its development in the ZK field.

Ethena Stable Coin Project Receives Funding Support

Recently, I participated in the Ethena stablecoin project, which incentivizes investor behavior to maintain overall yield. Despite the good yield of stablecoins, risks still need to be taken into account. The funding support received by the Ethena project reflects the market's attention to the stablecoin field.

Fetch.AI, SingularityNET, and Ocean Protocol Token Merge

Fetch.AI, SingularityNET, and Ocean Protocol announced the completion of the merger of the Artificial Superintelligence Alliance (ASI) on June 13. The tokens of the three projects will be merged into ASI tokens, reflecting the trend of integration in the field of artificial intelligence.

5. Latest Developments in Global Regulatory Policies

5.1. United States "21st Century Financial Innovation and Technology Act" (FIT21)

• This bill aims to clarify the division of responsibilities in cryptocurrency regulation between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) in the United States. According to the bill, cryptocurrencies with a higher degree of decentralization will be treated as commodities and regulated by the CFTC, while those with a lower degree of decentralization will be treated as securities and regulated by the SEC.
• The bill is expected to resolve the long-standing regulatory power dispute between the SEC and CFTC, bringing a more clear regulatory environment for the cryptocurrency industry. This may facilitate institutional investors' entry into the crypto market and drive industry development. At the same time, it may also lead to compliance challenges for certain crypto projects.

5.2. Hong Kong Cryptocurrency Regulatory Sandbox

• The Securities and Futures Commission (SFC) of Hong Kong has launched an encryption asset regulatory sandbox, allowing approved encryption trading platforms to operate in a regulatory environment and provide services to institutional investors.
• This move aims to attract cryptocurrency businesses to Hong Kong and promote it as a center for crypto assets. This may promote the development of the cryptocurrency ecosystem in Hong Kong and attract more crypto companies and investors to the region. However, it also means that cryptocurrency activities will be subject to stricter regulation.

5.3. EU Encryption Asset Market Act (MiCA)

• The MiCA aims to establish a unified regulatory framework for encryption assets in EU member states, including provisions for stablecoin issuers, encryption exchanges, and wallet providers.
• The bill is expected to bring higher transparency and consumer protection to the EU cryptocurrency market. However, it may also increase compliance costs and pose challenges to some crypto companies. In addition, a unified regulatory framework may attract more institutional investors to enter the EU crypto market.

6. Investment Analysis

6.1. Investment Recommendation

Based on the latest market trends and market information, the bullish sentiment in the market has been driven by favorable news such as the approval of Ethereum spot ETF and Trump's support for cryptocurrencies. Here are 5 recommended cryptocurrencies with growth potential:

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

6.2. Long-term Investment Strategy

For long-term investors, we recommend the Solana ecosystem token SOL listed on the Gate exchange as a long-term investment target. SOL is currently undervalued but has a good fundamental. It is recommended to use the strategy of building a position 48 times, invest in SOL every week until 48 positions are completed. The initial investment amount is 10% of the total investment amount, and the subsequent investment amount is 2.5% of the remaining investment amount.

Risk Warning: The cryptocurrency market is highly volatile, and investment should be cautious. We recommend setting a stop-loss level and closing positions immediately when the price falls by more than 20% to control risks. At the same time, closely follow the project's development updates and adjust strategies promptly.

6.3. Financial wealth management products

Yubibao is a residual currency product launched by Gate.io. Its main features are on-demand deposit and withdrawal and compound interest. Users can customize the minimum lending interest rate, and the system will determine whether the lending is successful and calculate the interest based on the actual borrowing needs. The total amount of USDT financial management in Yubibao is 1.2 billion USDT, with an estimated annual percentage rate of return of 7.33% + 8.87%.

Main financial products of Yu'ebao:

Note:

1. TradFi Financing Rates data is sourced from Bloomberg Terminal.
2. CeFi and DeFi Financing Rates data are sourced from mainstream cryptocurrency exchanges and lending platforms.
3. The above data is for reference only and does not constitute investment advice. The cryptocurrency market is highly volatile, so investment should be approached with caution.

Disclaimer: The information contained in this report is believed to be reliable, but the company does not guarantee its accuracy or completeness, nor is it responsible for any direct or indirect losses that may arise from the use of this information. The views, estimates, and other information contained in this report are the company's judgment at the time of its initial public release and are subject to change without notice. Past performance is not indicative of future results.

6.4. Risk Management Strategy

1. Set Stop Loss: It is recommended for clients to set reasonable stop loss points for each asset to limit potential losses. Stop loss points can be adjusted based on individual risk preferences and asset volatility.
2. Diversification Strategy: Do not concentrate all funds in a single asset, but instead diversify investments in different types of assets such as cryptocurrencies, stocks, bonds, etc., to reduce overall risk.
3. Regular Evaluation and Adjustment: It is recommended that clients regularly (such as quarterly or semi-annually) evaluate the performance of asset allocation and make necessary adjustments based on market changes and emerging investment opportunities to maintain the balance and potential returns of the investment portfolio.

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.

You're reading the weekly industry hotspot report generated for you by Gate.io AI Lab. Get an overview of the most noteworthy market trends and important events of the week, and recommend investment analysis and financial strategies for you.

Word Count: 4529 words | Reading time 9.7 minutes.

Table of Contents

1. The general trend of the market
2. Analysis of capital and price Fluctuation
3. Major events
4. Recent hot topics
5. The latest developments in global policies and regulations
6. Investment Analysis

1. The general trend of the market

1.1. Market sentiment

• According to the latest data, Bitcoin experienced a short-term pullback after the halving, but then quickly rebounded to a sideways range. The overall market sentiment is cautiously optimistic.
• The Fear & Greed Index shows that Bitcoin is currently in the "greed" zone, but has cooled from its all-time highs. This indicates that investor sentiment is becoming more rational.
• The alt market is fragmented, with some popular concept coins performing actively. But overall, funds are still dominated by Bitcoin, and alt capital inflows are relatively lagging behind.

1.2. Macroeconomic impacts

• Recent inflation data has exceeded expectations and Fed officials have highlighted the need to keep Intrerest Rate at high levels, adding to concerns about the path of interest rate hikes.
• Geopolitical tensions in the Middle East have boosted safe-haven demand, benefiting safe-haven assets such as gold and the US dollar. But it also exacerbates the risk of a global economic slowdown.
• Overall, uncertainty in the macro environment continues to rise, which may dampen the performance of risk assets and put some pressure on the Crypto Assets market.

2. Analysis of capital and price Fluctuation

2.1. Price Fluctuation Analysis

• Bitcoin experienced wild Fluctuations in the last week. According to the research report, Bitcoin prices fell sharply fall 11% at the beginning of the week, fall to around $57,000, hitting a two-month low. This is mainly due to the fact that Bitcoin Halving events are approaching, and investors are "buying on rumors and selling on facts" in advance. However, Bitcoin quickly rebounded and returned above $65,000 by the end of the week.
• Volume data shows a marked increase in trading activity during periods of price falls, indicating a shift in market sentiment to caution. But after the price rebound, volume declined, reflecting investors' disagreement on the outlook. In general, the price Fluctuation of Bitcoin has increased and may remain high in the short term.

2.2 Funding analysis

• The data shows that during the fall of Bitcoin prices, there was a large outflow of funds from the Spot Bitcoin ETF. Among them, the Grayscale Trust Fund GBTC had a net outflow of more than $560 million that week. At the same time, other Bitcoin ETF products such as Fidelity and Bitwise saw net inflows.
• Looking at the investor base, institutional investors seem to "buy by hearsay, sell by facts" before and after the Halving, resulting in large outflows. Retail investors, on the other hand, bought the dips at the dips, fueling the later Rebound.
• Overall, Bitcoin Halving events have triggered a sharp Fluctuation in funding. Outflows from institutional investors are likely to weigh on prices in the short term, while retail investor inflows may supporting price stabilization.

3. Major events

Bitcoin Fourth Halving Completed

On April 20, 2024, the fourth Halving of Bitcoin was successfully completed. This is an important milestone in Bitcoin's history, with the number of new Bitcoins issued Halving to 6.25 per block. Halving event will affect the supply of Bitcoin and may push prices pump. But in the short term, Bitcoin has seen a sharp pullback to around $60,000.

US SEC Approved Bitcoin Options ETF

According to reports, the U.S. SEC will issue a resolution on BlackRock's Bitcoin Spot ETF Options transaction application on April 24. If approved, it will be the first Bitcoin Options ETF product in the United States. The launch of the Options ETF will provide more long investment vehicles for institutional investors and is expected to further promote the development of the Bitcoin market.

Hong Kong Securities and Futures Commission will approve Bitcoin Spot ETF

The Hong Kong Securities and Futures Commission plans to listing Spot Bitcoin ETF in Hong Kong. This will be the first Bitcoin Spot ETF product in Asia, marking the rise demand for Crypto Assets investment vehicles in the Asian market. The launch of the Spot ETF will provide investors with more convenient investment channels.

Shiba Inu Raises $12 Million to Develop Privacy Chain

Shiba Inu raised $12 million through the sale of its un issuance Token TREAT to non-U.S. The funds will be used to develop its new privacy-focused Layer 3 Blockchain. The initiative aims to address privacy and trust concerns while complying with regulatory requirements.

CoinShares: $206 million in digital asset investment product outflows last week

According to CoinShares data, digital asset investment products last week saw a total outflow of $206 million for the second consecutive week. Among them, Bitcoin outflows of $192 million and Ethereum outflows of $34 million. This reflects investors' wait-and-see sentiment towards the Crypto Assets market.

Thailand to block unauthorized encryption platforms

Thai authorities decided to block "unauthorized" encryption platforms in order to improve the efficiency of law enforcement and tackle online crime. This move aims to strengthen the supervision of the Crypto Assets market and maintain market order.

Mina plans for a Berkeley upgrade on June 4th

The lightweight Blockchain network Mina is scheduled to undergo a Berkeley upgrade on June 4 to enhance the ZK Programmability of the Mina network. This technology upgrade will improve the performance and functionality of the network, which will benefit the long-term development of the project.

LightLink Airdrop Token to Mocaverse NFT holders

Ethereum Layer 2 network LightLink will Airdrop LL Token to Mocaverse NFT holders, and will receive 1,000 LL for each Mocaverse NFT. This Airdrop campaign aims to incentivize the community and increase the liquidity of Tokens.

ApeCoin Launches NFT Launchpad Proposal Voting

The ApeCoin DAO community launched a vote on the "NFT Launchpad Powered by APE" proposal, which aims to enhance the utility and adoption of APE as a Token by facilitating the creation and trading of NFTs. The proposal reflects the development direction of the ApeCoin ecosystem.

4. Recent hot topics

Roaring Kitty returns to spark MEME coin craze

Twitter user @Roaring Kitty (Keith Gill) was the initiator of the 2021 retail confrontation Airdrop that drove GameStop's stock price to a surge. On May 13, he tweeted a large number of small videos suggesting that the community was once again starting a new retail revolution. Affected by this, related MEME coin such as KITTY and GME ushered in a wave of big pump. However, most of the long are related MEME coin no one trades, and only a few have some volume.

Sui Chain Integration Netki DeFi Compliance Oracle Machine

The Sui Chain will integrate Netki's DeFi Compliance Oracle Machine to provide real-time KYC/AML, Wallet filtering, financial transaction monitoring, securities Compliance, and tax Compliance for DeFi protocol on Sui. The solution combines on-chain and off-chain data to ensure that every transaction meets institutional risk and regulatory standards, helping to drive DeFi to be safer and more accessible on a global scale.

After Bitcoin Halving Miner income does not decrease but increases temporarily

Adam, a Greeks.live macro researcher, said that Bitcoin successfully completed the Halving last Saturday, the market was relatively stable, and some hot projects pushed up the BTC Money Laundering, making the Miner's income temporarily increase instead of falling. There are few macro events and data this week, the market is still based on the trend of US stocks, and risk assets can still see significant fluctuations.

CoinShares: $206 million in digital asset investment product outflows last week

According to CoinShares data, digital asset investment product outflows totaled $206 million for the second consecutive week last week, and ETP volume fell slightly to $18 billion. The outflow of Bitcoin investment products was $192 million, and the outflow of shorting Bitcoin products was $0.3 million. Ethereum had an outflow of $34 million, the sixth consecutive week of outflows.

Cyber upgraded from protocol to social Layer 2 chain

CyberConnect, a new social public chain built based on the OP Stack, was officially launched. Cyber chooses to build on the OP Stack and join the Optimism super chain family, which can connect the resources behind the OP Stack alliance and share users and liquidity. At the same time, the RaaS service based on Altlayer can drop the availability of DA data outside Ethereum and reduce application construction and operation and maintenance costs.

5. The latest developments in global policies and regulations

Policy & Regulatory Updates

• The U.S. Congress is about to vote on the 21st Century Financial Innovation and Technology Act (FIT21), which aims to establish clear federal regulatory rules for the digital asset market.
• China's Central Bank has included the trading of government bonds in its open market operation tools to regulate market supply and demand and promote the smooth operation of yields.
• The Securities and Futures Commission of India (SEC) has recommended that longest regulators should monitor Crypto Assets trading activities in the country.

6. Investment analysis

6.1. Investment recommendations

The market trend shows that the Bitcoin Halving event has been completed, and the Crypto Assets market as a whole shows a volatile upward trend. Popular news includes Ethereum ETF's upcoming listing in Hong Kong, Shiba Inu's $12 million raises to develop a new chain, and more.

According to market analysis, the following 5 Crypto Assets have great rise potential:

This chart shows the price movements of Bitcoin (BTC), Ethereum (ETH) and DOGEB (SHIB) over the past 7 days. The price action of Bitcoin and Ethereum is shown on the left y-axis, while the price action of Doge is shown on the right-hand y-axis. As you can see from the chart, the price Fluctuation of Bitcoin and Ethereum is large, while Dogecoin is relatively stable. Overall, the price trends of Bitcoin and Ethereum are broadly consistent.

**Disclaimer: The above recommendations are based on current market analysis only and are not financial advice, and investment should be done with caution and at your own risk. **

6.2. Long-term investment strategy

For long-term investors, it is recommended to pay attention to encryption asset projects with practical application value, such as Ethereum, Polkadot, etc. The technological development of these projects is promising and is expected to become the future Blockchain infrastructure. At the same time, we should also pay close attention to changes in regulatory policies and do a good job in risk management. Diversify your portfolio appropriately and control the proportion of investments in a single asset. Develop a long-term investment plan, adhere to the concept of value investment, and avoid speculation.

**Risk Warning: Encryption asset market Fluctuation is fierce, investment needs to be cautious. Before investing, you should fully understand the project and evaluate the risks and benefits. Investment is risky, and you need to be cautious when entering the market. **

6.3. Financial wealth management products

Yu coin Bao is a coin interest-bearing product launched by Gate.io, and users can subscribe to Yu coin Treasure with idle funds to obtain Interest income. Key features include: deposit-and-go, Interest compound interest, custom lending Intrerest Rate, and more. After the user subscribes, the system will determine whether the loan is successful and calculate the interest every hour according to the Intrerest Rate set by the user and the actual borrowing demand. The total amount of USDT in the remaining coin treasure is 1.077 billion USDT, and the estimated APR rate of return is 5.85%+8.87%.

The main wealth management products of Yu coin treasure are as follows:

6.4. Asset allocation Risk Management strategy

1. Set a stop loss:

• Set a reasonable stop loss for each investment to control potential losses.
• Stop loss levels can be adjusted according to individual risk appetite and investment goals.

2. Diversification:

• Diversify your assets into different types of assets, such as stocks, bonds, Crypto Assets, etc.
• Diversify within the same asset class, investing in different sectors and geographies.

3. Periodic Assessment and Adjustment:

• Conduct a comprehensive review of the portfolio at least once every six months.
• Adjust asset allocation in a timely manner based on market changes and new investment opportunities.
• Maintain a dynamic balance of your portfolio to achieve stable returns over the long term.

By adopting the above Risk Management measures, the safety and soundness of asset allocation can be improved, risks can be effectively controlled, and long-term stable value-added can be achieved.