AI Weekly Hot Topics Report (6.1-6.7)

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.