AI Weekly Hotspot Report (10.24 - 10.31)

You are reading the weekly industry hotspot report generated for you by Gate AI Lab. Here’s a look at the most noteworthy market trends and important events from last week, along with recommended investment analysis and financial strategies.

Word count: 5602 words ｜ Reading time 7.6 minutes.

Directory:

1. Market Trends
2. Analysis of capital flow and price fluctuations
3. Hot Topics
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 $3.579 trillion, a decrease of 7.9% compared to the previous period. The trading volume on exchanges decreased by 6.8%, reaching $1.23 trillion. The price of Bitcoin fell by 4% to $98,839.87. Overall market sentiment is bearish, with a dominant downward trend. The main reason is the hawkish remarks from Federal Reserve Chairman Powell, which have suppressed the crypto market.

According to the Gate Fear and Greed Index, today's market sentiment is “Fear”, with a Fear and Greed Index of 29, indicating that the current market sentiment is extremely pessimistic. Compared to last week, the market sentiment has improved slightly, but overall it remains in a sluggish state.

Crypto & Tradition Overview as of 09am UTC+8, Oct 31

1.2. Macroeconomic Impact

Recent global economic data shows that inflationary pressures remain high, and the Federal Reserve continues to adhere to its interest rate hike path. The latest data indicates that the U.S. CPI rose by 8.20% year-on-year in September, higher than the expected 8.10%, while the core CPI increased by 6.60% year-on-year, also above the expected 6.50%. The preliminary Eurozone CPI year-on-year for September stands at 10.00%, a record high. Against the backdrop of rising inflation, the Federal Reserve raised interest rates by 75 basis points in September, in line with market expectations.

According to the CME Group's FedWatch tool, the market expects an 83.50% probability that the Federal Reserve will raise interest rates by another 50 basis points in December, with a 58.80% probability of pausing rate hikes in May 2023. At that time, the target range for the federal funds rate could reach a high of 4.75%-5.00%. The hawkish monetary policy has put heavy pressure on the cryptocurrency market, with Bitcoin trading in a narrow range around $19,000 since mid-June.

In addition to inflation and interest rate factors, the uncertainty surrounding global economic growth prospects has also intensified the volatility of risk assets. The U.S. manufacturing PMI for September is 51.8, slightly above the expected 51.0, but still within a weak range. The Eurozone manufacturing PMI for September is 48.4, below the expected 48.5, indicating that the manufacturing sector is contracting. Against this backdrop, the investment sentiment in the cryptocurrency market remains sluggish.

Overall, the current macroeconomic situation is complex, with high inflation, tightening monetary policy, and slowing economic growth all putting pressure on the cryptocurrency market. Investors need to closely monitor changes in macro data and cautiously seize investment opportunities.

2. Analysis of Capital Flow and Price Volatility

2.1. Price Fluctuation Analysis

BTC Volatility Based on the daily closing prices of BTC over the past week, the weekly volatility of BTC is 2.25%.

Price Fluctuation and Reasons This week, the price of BTC fluctuated between 108,283.40 and 111,943.50 USD. The price decline was mainly influenced by expectations of interest rate hikes from the Federal Reserve, which reduced investor demand for risk assets. At the same time, some long-term holders took profits at high levels, further exacerbating the selling pressure.

Impact of Trading Volume Changes The changes in trading volume reflect market activity. This week, the average daily trading volume of BTC has decreased compared to last week, indicating a cooling of market participation enthusiasm. A decline in trading volume often signals a narrowing of price fluctuations.

Market Activity and Price Direction Despite a decrease in trading volume, the price of BTC is still fluctuating within a relatively narrow range. This indicates that the market is in a wait-and-see mode, waiting for new positive or negative factors to emerge. If trading volume remains low, the price may continue to follow a range-bound pattern in the short term.

2.2. Fund Analysis

According to the capital flow data, major cryptocurrencies showed a net inflow this week. Among them, the virtual currency VIRTUAL had the largest net inflow amounting to $1,525,801.57. The net inflow amounts for FET and FORM currencies were also relatively considerable, at $3,320,478.24 and $3,734,272.86 respectively.

Mainstream Currency Performance: There are no updates on the fund flow data for Bitcoin BTC and Ethereum ETH this week. However, from the market situation, the BTC price is encountering resistance around $106,800 and may further test the key support level of $103,800 in the short term. Ethereum ETH is stabilizing above the $1,600 range.

Investor Sentiment: Based on the net inflow of funds into cryptocurrencies, investors have shown a higher preference for mid and small-cap coins. This may reflect an increase in institutional investors' allocation to risk assets, while also indicating a rebound in retail investors' activity. Overall, market activity has improved compared to last week.

Market Analysis: This week, the cryptocurrency market has shown a divergent pattern. Major currencies BTC and ETH are maintaining range-bound fluctuations, while some mid and small-cap coins have seen a certain degree of capital inflow and price increases. This may be related to investors' enthusiasm for technological innovation and their preference for risk assets.

3. Hot Topics

4. Major Events

The following are the Top 15 events that will significantly impact the cryptocurrency market from October 24 to 31, 2025:

Federal Reserve Interest Rate Decision

• 2025-10-30
• The Federal Reserve raised interest rates by 25 basis points as expected, but Powell hinted at a possible pause in December, causing market volatility. Bitcoin briefly fell to around $110,000, triggering $72.8 million in cryptocurrency positions to be liquidated.

Lombard acquires BTC.b

• 2025-10-30
• The Bitcoin DeFi protocol Lombard has acquired the cross-chain Bitcoin asset BTC.b from Ava Labs, with a market capitalization of approximately $502 million. BTC.b will continue to operate on Avalanche but will transition to Lombard's technological infrastructure.

Nine Sons Collaborate with SOLV

• 2025-10-31
• Jiuzi Holdings commits up to $100 million and 10,000 BTC for SOLV's DeFi yield platform SolvBTC.BNB treasury. This collaboration connects traditional financial compliance with DeFi Bitcoin finance.

Doge enters the football arena

• 2025-10-31
• Doge House and Brag House have announced that they have acquired a controlling stake in the Italian football club U.S. Triestina Calcio 1918, and the Dogecoin logo will appear on the jerseys and in the stadium.

PEPE Test Key Trend Line

• 2025-10-31
• The PEPE token is testing the key Fibonacci trendline support before the FOMC meeting. Analysts believe that if the green zone breaks through, PEPE may return to the red zone.

XRP liquidity concentrated at $3.6

• 2025-10-31
• XRP liquidity has significantly expanded to approximately $3.6, reflecting the activity in the spot and derivatives markets. Traders define the short-term range as $2.51-$2.66.

Tensor is known as “Crypto Nvidia”

• 2025-10-31
• Analysts call Tensor the “Nvidia of cryptocurrency” and believe its decentralized AI network is expected to become a major participant in AI infrastructure.

XRP Price Prediction

• 2025-10-31
• Analysts believe that the XRP price is forming a bullish inverse head and shoulders pattern, with a breakout above $2.7 confirming the validity of the pattern, targeting a price of $3.

Ethereum Price Analysis

• 2025-10-31
• Analysts believe that Ethereum is finally showing signs of life and is expected to reverse within the trapped range.

Near Protocol Halving

• 2025-10-31
• Near Protocol has successfully completed its halving upgrade, reducing the maximum annual inflation rate from 5% to 2.5%, ushering in a more sustainable token economy era.

Digital Euro Next Phase

• 2025-10-31
• The next phase of the EU Digital Euro is a pilot in 2027, with a potential official launch in 2029, sparking discussions about innovation and control.

Social Engineering Scam Threat

• 2025-10-31
• The report indicates that social engineering scams will remain the biggest threat faced by crypto users in 2025, accounting for 40.8% of security incidents.

Bernstein is optimistic about SharpLink

• 2025-10-31
• Research firm Bernstein has given SharpLink Gaming an “outperform” rating, setting a target price of $24 by the end of 2026, representing an upside potential of about 75% compared to the current stock price.

Competition in the UK Crypto ETN Market Intensifies

• 2025-10-31
• After the UK lifted the ban on retail investors in crypto ETNs, price competition among issuers intensified, and fees fell to historic lows.

By hacked 1.5 billion USD

• 2025-10-31
• The hacking incident orchestrated by North Korea's Lazarus Group is believed to be the largest theft in the history of cryptocurrency, amounting to 1.5 billion dollars.

5. Global Policies

6. Investment Analysis

6.1. Investment Recommendation

Market trends indicate that as the cryptocurrency market warms up, investors are seeking projects with real-world applications and robust technology. Hot news includes the strong presale performance of BlockDAG, the ongoing integration of Chainlink, and increased institutional interest in certain projects. Market analysis shows that some altcoins are demonstrating good fundamentals and community activity.

Please note that these suggestions are based solely on current market analysis and are not financial advice. Investing carries risks; please proceed with caution.

6.2 Investment Strategy

Popular Token Technical Analysis This Week

Dogecoin is forming the second bottom of a double bottom pattern on the 3-day chart. The support level at $0.1875 remains solid, and the pattern has not been structurally broken. Trading is within a close trading range, with price capped near the resistance at $0.1971. The market is contracting, waiting for further direction confirmation.

Quantitative Strategy Summary

The grid trading strategy captures small fluctuations by setting multiple buy and sell points within a price fluctuation range, suitable for moderately volatile markets. The moving average tracking strategy trades based on the direction of the moving average line, with lower risk. The market maker strategy earns the bid-ask spread by simultaneously buying and selling, suitable for high volatility markets. The reverse trading strategy opens positions in the opposite direction when the price breaks through a certain range, with higher risk. The trend following strategy trades in line with the price trend, offering a more balanced return-risk ratio.

Summary

This week's quantitative strategies showed a mixed performance, with grid trading and trend-following strategies achieving good returns. The reverse trading strategy incurred losses due to increased volatility. Investors can choose suitable quantitative strategies based on their own risk preferences.

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