Gate.io Weekly Industry Hot Spot Report

Report time: 2024-05-15 10:24

The general trend of the market

Market sentiment

• Based on recent data, the market sentiment is cautiously optimistic. Bitcoin experienced a brief pullback after the Halving, but then quickly rebounded, showing strong resilience.
• The alt market has also seen a sharp pump, especially the AI concept coin. The overall Fear & Greed Index is in the "greedy" range, reflecting a trend of optimism in the market.
• But at the same time, some strong coins have pullbacks, indicating that there is still some uncertainty in the market. Investors need to remain cautiously optimistic and pay attention to the impact of major events and data.

Macroeconomic implications

• The better-than-expected US non-farm payrolls data supported market expectations that the Fed could cut interest rates earlier this year, which was positive for risk assets.
• However, hawkish comments from Fed officials also made the market doubt about the timing of interest rate cuts, and the dollar index hit a new high in nearly half a year, which could put some pressure on the Crypto Assets market.
• Changes in the geopolitical situation are also an uncertain factor. Tensions in the Middle East have heightened risk aversion in the market, but a de-escalation could be conducive to a rebound in risk assets.

Analysis of capital and price Fluctuation

Price Fluctuation Analysis

Bitcoin experienced wild Fluctuation 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 significant 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.

Funding analysis

The data shows that during the fall of Bitcoin prices, there was a large outflow of funds in 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.

From the perspective of the investor group, institutional investors seem to "buy by hearsay, sell by facts" before and after the Halving, resulting in a large outflow. Retail investors, on the other hand, bought the dips at the dips, fueling the later Rebound.

Overall, the Bitcoin Halving incident 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.

Major Events

The fourth Halving of Bitcoin is complete

On April 20, 2024, the fourth Halving of Bitcoin was successfully completed. This is an important milestone in Bitcoin's history and will Halving Bitcoin issuance from 6.25 to 3.125 every 10 minutes. Halving is expected to increase Bitcoin's scarcity and store of value functions, but it may also trigger price fluctuations in the short term.

US SEC approved Bitcoin Spot ETF

In March 2024, the U.S. SEC (SEC) approved Bitcoin Spot ETF's listing application. This is the first time that the U.S. has approved Bitcoin Spot ETF and is expected to drive institutional investors into the Crypto Assets market. After the approval, long asset management companies launched Bitcoin Spot ETF products one after another.

The SFC approves Bitcoin and Ethereum Spot ETF

Following the US, the Hong Kong Securities and Futures Commission also approved the listing of Bitcoin and Ethereum Spot ETF in Hong Kong in April. This marks a breakthrough for Crypto Assets ETF products in the Asian market and is expected to further drive the participation of institutional investors.

Arbitrum upgraded to Nitro Chain

Ethereum's layer-2 scaling solution, Arbitrum, was upgraded to the Nitro Chain in March, significantly improving throughput and scalability. After the upgrade, the Arbitrum ecosystem has also ushered in the addition of more long projects, and the ecological activity has increased significantly.

ChatGPT launches paid subscription service

ChatGPT, an artificial intelligence chatbot, launched ChatGPT Plus, a paid subscription service, in March. This move is expected to bring a new revenue stream to OpenAI, while also reflecting the commercialization prospects of AI technology.

Aptos launches mobile Wallet Aptos Petra

Aptos launched its mobile Wallet Aptos Petra in April with the aim of providing users with a more convenient experience. Petra Wallet supports longest chains, NFT display and other functions, which is expected to promote the development of the Aptos ecosystem.

Polygon zkEVM Testnet launched

Ethereum scaling solution Polygon's zkEVM Testnet went live in March. zkEVM is expected to significantly improve the scalability and privacy of Polygon, attracting more long projects.

Uniswap v3 is deployed to zkSync

The v3 version of the DEX Uniswap was deployed to zkSync in April. This move is expected to improve Uniswap's privacy and scalability, bringing a better experience to users.

Lido launches decentralized depositary receipts

Lido launched Distributed Validator Technology (DVT) in March, aiming to further decentralize its services. DVT is expected to enhance the security and reliability of Lido.

Sui Testnet Sui Devnet launched

Testnet Sui Devnet, a new public chain launched by Mysten Labs, was launched in April. Sui is positioned for Web3 games and social applications, and the launch of Devnet is expected to promote its ecological construction.

Recent Hot Topics

Bitcoin Halving and its implications

Bitcoin's fourth Halving was successfully completed on April 16. The data showed that the price of Bitcoin briefly falls before and after the Halving, but quickly rebounded and remained above $60,000. Similar to the previous Halving cuts, there may be some fluctuation in the price within 60 days after the Halving. Analysts believe it could take about 100 days for the impact of the supply shortage caused by the halving to be felt. At the same time, Bitcoin has been stronger than Ethereum in this round of Bull Market, attracting more long inflows.

Israeli-Iranian conflict intensifies

In mid-April, a conflict broke out between Israel and Iran over the territory. After the two sides attacked each other, Israel at one point considered launching a large-scale counterattack against Iran. Under diplomatic pressure from the United States and other countries, Israel eventually abandoned this plan. Analysts believe that if the conflict escalates further, it could trigger a major conflict in the Middle East. At present, the two sides still maintain a certain degree of restraint, but there is still a risk of escalation of the situation.

US Crypto Assets Regulatory Moves

The U.S. Crypto Assets industry is influencing the upcoming election by pouring a lot of money into Washington. Some encryption political action committees have raised tens of k million dollars to support encryption-friendly candidates. Although Crypto Assets holders tend to prefer Trump as president, industry insiders are divided on whether Trump is really more beneficial to Crypto Assets. At the same time, senators also challenged the attorney general over the regulation of encryption software services.

Yen Exchange Rate Trend

The data shows that speculators' positions betting on the depreciation of the yen have reached record levels. Analysts believe that this makes the yen increasingly risky for a rebound. If the Central Bank of Japan intervenes in forex to support the yen, it may use its holdings of U.S. Treasury bonds and have an impact on the U.S. bond market. However, the current conditions have not yet met the historical precedent that would trigger coordinated intervention.

Crypto Assets industry development

After Bitcoin Halving last week, the market performance was relatively stable. Some popular projects have pushed up the Bitcoin Money Laundering, so that the Miner's income has increased instead of declining for the time being. At the same time, Bitcoin's implied Volatility Index DVOL has declined, indicating that market sentiment is relatively stable. Analysts believe that there are fewer macro events this week, and risk assets can still see significant fluctuations.

The latest developments in global policies and regulations

Policy & Regulatory Updates

• U.S. senators have questioned the Justice Department's pursuit of Crypto Assets services that could affect free speech for software developers.
• Oklahoma signed legislation protecting Bitcoin rights, including self-custody, consumption, and mining.
• The U.S. House of Representatives passed a resolution to overturn the SEC's encryption accounting policies, aiming to promote Crypto Assets regulation.

Investment Analysis

Investment recommendation: grasp the hot spots in the market and lay out promising crypto coins

Market Movement: Prices fluctuated after Bitcoin Halving, but the overall upward trend remained pump. The Ethereum ecosystem continues to be active, and Layer 2 scaling solutions have attracted much attention.

Hot News: Shiba Inu Raises $12 Million to Develop Privacy Chain; Mina will enhance ZK Programmability; The proposal for the Injective tokenomics upgrade was approved.

Crypto Assets Quotes: Bitcoin pumped slightly higher and is now trading at $65,859.90; Ethereum pump 1.35% to $3,211.63.

| Coins | Current Price | Recommended Holdings Amount | Risk & Reward | Reason for recommendation | | | ---- | ----------- | ------------- | ------------------ | ------------------------------ | - | | BTC | $65,859.90 | 0.5BTC | Medium Risk, Medium High Return | Supply is reduced after the Halving, and it will remain hard currency in the long term | | ETH | $3,211.63 | 10ETH | Medium and high risk, high reward | Layer 2 expansion is expected to promote ecosystem development | | SHIB | $0.00002736 | 1,000,000SHIB | High Risk, High Reward | Privacy Chain development is expected to bring new application scenarios | | | MINA | $1.63 | 1,000MINA | Medium and high risk, high reward | ZK Programmability upgrade is expected to promote ecological development | | INJ | $1.89 | 5,000INJ | Medium Risk, Medium High Return | Tokenomics upgrades are good for long-term value | |

The chart above shows the price action of the recommended Crypto Assets (ETH, SHIB, MINA, INJ) and Bitcoin (BTC) over the past 7 days. The prices of ETH, SHIB, MINA, and INJ are represented in blue, while the prices of BTC are represented in red. The price Fluctuation of various Crypto Assets can be seen from the chart, which provides a reference for market research and investment decisions.

Disclaimer: The above recommendations are based on current market analysis only and are not financial advice. Investment is risky, please be cautious.

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 advancement and ecosystem development of these projects are worth looking forward to. At the same time, diversifying investments in different types of encryption assets helps diversify risks. Risks include regulatory policy changes, technology vulnerabilities, and more. It is recommended to develop a stop loss strategy to control risk exposure.

Yu coin Bao Yu coin earn interest, save and take at any time, and Interest compound interest

After the user subscribes to the coin treasure, the system will determine whether the loan is successful and the Intrerest Rate of the hour according to the lending Intrerest Rate set by the user and the actual borrowing demand on each hour, and the Interest of the hour can be obtained if the loan is successful.coin

The total amount of USDT in the remaining coin treasure is 1.044 billion USDT, and the estimated APR rate of return is 6.49%+8.87%.

| Coin | Total Wealth Management | Estimated APR Rate of Return | | ---- | ------------ | -------------- | | USDT | 363515039.05 | 6.14% + 8.87% | | BTC | 1634.26 | 0.88% + 5.12% | | ETH | 24143.55 | 0.88% + 6.12% | | AEVO | 1356818.31 | 400.00% |

Asset allocation Risk Management strategy

1. Set a stop loss point: It is recommended to set a reasonable stop loss point for each investment to control potential losses. Stop loss levels can be adjusted according to individual risk appetite and investment goals.

2. Diversification: Don't concentrate all your funds in a single asset or industry, but appropriately diversify your investments in different types of assets, such as stocks, bonds, Crypto Assets, etc., to drop risks.

3. Regular Assessments and Adjustments:

   • Evaluate the portfolio on a quarterly basis and make necessary adjustments based on market changes and new opportunities.
   • Rebalance the portfolio with a comprehensive review of the overall asset allocation on a semi-annual or annual basis.

4. Risk Management awareness: Maintain Risk Management awareness at all times, pay close attention to market dynamics, and take timely actions to deal with potential risks.

5. Professional advice: If necessary, you can seek the advice of a professional investment advisor for a more professional asset allocation plan.