AI Weekly Hot Spot Report (5.10-5.17)

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.