AI Weekly Hot Topics Report (02.14 - 02.21)

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

Word count: 8485 words | Reading time 11.5 minutes.

Table of Contents:

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

1. Market Trends

1.1. Market Sentiment

This week, the total market value of cryptocurrencies reached $1.25 trillion, down 2.35% from the previous week. The exchange trading volume increased by 1.12% compared to the previous week, reaching $1.08 trillion. Bitcoin's total market value accounts for 40.21%, and the price is oscillating around $97,040. The overall market sentiment is cautious, lacking a clear direction.

According to the Gate.io Fear and Greed Index, today's market sentiment is "greed" with a score of 55. Compared to yesterday, the sentiment has slightly increased, but still remains within the normal range. Overall, the market sentiment remains relatively stable.

Crypto & Tradition Overview as of 15pm UTC+8, Feb 21

1.2. Macro Economic Impact

Recent data shows that the global economic recovery is slowing down. In February, the US CPI rose by 6.0% year-on-year, higher than the expected 5.8%, but lower than the previous value of 6.4%. The initial estimate of the Eurozone's CPI in February was 8.5%, higher than the expected 8.2%. The probability of a 25 basis point rate hike by the Fed in March is 76.6%, and the probability of a 50 basis point hike is 23.4%. The probability of a 50 basis point rate hike by the ECB in March is 65.2%.

The producer price index is a leading indicator of inflationary pressure. In the United States, the PPI in February rose by 4.6% year-on-year, lower than the previous value of 5.7%. The Eurozone's PPI in February was 13.6% year-on-year, higher than the previous value of 12.1%. PMI data indicates an economic slowdown. The US manufacturing PMI in February was 47.7, remaining in the contraction zone for the fourth consecutive month. The Eurozone manufacturing PMI in February was 48.5, the lowest in 31 months.

Overall, inflation pressures have eased somewhat but remain high. Economic activity continues to slow, and the job market is weak. It is expected that the Federal Reserve and the European Central Bank will continue to raise interest rates to curb inflation expectations, but the pace of rate hikes may slow down. The heightened uncertainty in the macro environment has intensified the volatility in the cryptocurrency market.

1.3 Financial Calendar

This week, the focus will be on the U.S. January personal spending and core PCE price index data, which will provide important reference for the Fed's next interest rate decision. In addition, the German February unemployment data and the revised fourth quarter GDP of the United States are also worth paying attention to. Overall, the economic data released this week will reflect the inflation and employment situation of the major economies in the United States and Europe, which will have an important impact on the global financial market trend.

2. Analysis of Fundamentals and Price Volatility

2.1. Price Fluctuation Analysis

BTC Weekly Volatility This week, the weekly volatility of BTC is 0.51%. This value is calculated based on the standard deviation of the closing price each day within a week.

Price fluctuations and reasons This week, the BTC price fluctuated narrowly between $97,000 and $99,000. The price overall showed a slight upward trend. This is mainly due to the market's expectation of the Federal Reserve's slowing pace of interest rate hikes and the continued increase in institutional investors' allocation to BTC.

Changes in Trading Volume and Their Impact
This week, the average daily trading volume of BTC has declined compared to last week, but it still remains at a high level. The decrease in trading volume may imply a decrease in market activity, but overall, the trading volume remains active.

Market activity and price direction Despite a slight decrease in trading volume, technical indicators show that market activity remains high. Bullish momentum is dominant, and BTC is expected to continue its upward trend in the short term. However, investors need to closely monitor changes in macroeconomic data and regulatory policies.

2.2. Capital Analysis

According to the fund flow data, the recent inflow and outflow of major cryptocurrencies are as follows:

VIRTUAL: In the past week, VIRTUAL tokens have shown a net inflow of funds. Data shows that on February 21, there was a net inflow of $2,053,480.79, the highest level in the near term. This indicates strong demand from investors for the token.

LAYER: The LAYER ecosystem has also attracted a large amount of funds. On February 21st, the net inflow of funds into the LAYER ecosystem reached $16,018,468.73, the highest level in the recent period. This may be related to its upcoming major upgrade, which investors have shown great enthusiasm for.

THE: THE token has performed well in the past week, with net inflows of funds consistently at a high level. On February 21, the net inflow of THE token was $14,529,163.88, reflecting investors' favor for the token.

The fund flow data of other major cryptocurrencies such as AR, MOVE, S, OP, GPS, etc. is relatively stable, without significant fluctuations.

Overall, the flow of funds for major cryptocurrencies indicates a high level of market activity, with strong demand from investors for some popular tokens. This may drive up the prices of related tokens. However, caution is also needed to guard against the risk of excessive fund concentration.

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2.3. Smart Money Analysis

Large single trades of Bitcoin and Ethereum indicate the trend of institutional investors. According to data, the large single trades of Bitcoin are showing a net outflow, indicating that institutional investors are gradually exiting their positions. This may foreshadow significant selling pressure on Bitcoin in the short term.

By contrast, Ethereum's large single transaction volume shows a net inflow, indicating that institutional investors are increasing their Ethereum positions. This may mean that Ethereum will receive more support in the near future.

BTC Large Order Analysis: The large order volume of Bitcoin has a net outflow of 510 BTC, worth approximately $49.92 million. This indicates that institutional investors are gradually reducing their Bitcoin positions, and Bitcoin may face significant selling pressure in the future.

ETH Large Order Analysis: Ethereum's large order volume net inflow was 9,368 ETH, worth about $25.9 million. This shows that institutional investors are increasing their positions in Ethereum, and Ethereum may gain greater support in the future.

Overall, institutional investors are currently cautious about Bitcoin and more bullish on Ethereum. This could signal that Bitcoin will come under more selling pressure in the near term, while Ethereum may receive more support.

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3. Hot Topics

Based on the provided data and discussion frequency, the hottest topic in the past week is the scandal of LIBRA Meme Coin. Here is the related special report:

Argentine President Milei's support for the LIBRA Meme coin has caused trouble! Investors have lost everything, and the coin circle is in turmoil.

The dream of getting rich overnight shattered, LIBRA fell from heaven to earth

LIBRA Meme coin was once seen as one of the hottest cryptocurrencies in 2025. With the strong support of Argentine President Javier Milei, this Meme coin attracted a large number of investors' favor in just a few days, with a market value reaching as high as 4.5 billion dollars. However, just as investors were dreaming of getting rich, a frenzy party initiated by insiders completely shattered this dream.

According to on-chain data from Nansen, shortly after reaching its peak, insiders started to sell frantically. Due to the massive scale of selling, the price of LIBRA plummeted by over 90% in just a few days. Data shows that from February 16th to 18th, at least 70% of wallets suffered huge losses when trading LIBRA. On February 18th, the number of LIBRA holders dropped sharply from over 50,000 to 35,800.

"We have all been deceived!" an investor who claimed to have invested all his family's savings angrily said, "LIBRA is a complete scam, we are being treated as ATMs!"

The cryptocurrency community is furious, Milei faces a public opinion backlash

When the LIBRA scandal was exposed, the entire currency circle was thrown into a huge turmoil. Many investors began to question the operation of the LIBRA project, and some even directly pointed the finger at Argentine President Milei as the mastermind behind this scam.

Miley initially promoted LIBRA on Twitter, predicting that the project would "support the growth of the Argentine economy and commercial landscape." However, when the scam of LIBRA was exposed, Miley deleted the previous tweets immediately and began to argue that he had never supported the project.

"Milai's behavior is undoubtedly fleeing in a panic!" an analyst angrily said, "As a national leader, he is not only promoting a fraudulent project, but also lying and shirking responsibility afterwards, which is simply a disgrace internationally!"

Argentine opposition party members also took the opportunity to launch a fierce attack on Mire. Some directly accused Mire of "abusing power for personal gain," while others called for the initiation of impeachment proceedings against Mire.

(# Regulatory authorities are closely watching, casting a shadow over the prospects of the currency circle.

The LIBRA scandal has not only plunged Milai into a public opinion storm, but also cast a shadow over the entire cryptocurrency field. Some analysts worry that this incident will trigger further scrutiny and control by regulatory authorities on digital currencies, thus inhibiting the industry's innovation and development.

"THE LIBRA INCIDENT HAS ONCE AGAIN EXPOSED THE DARK SIDE OF THE INDUSTRY." Nic Carter, a cryptocurrency analyst, said, "If we don't act in time to curb this manipulation and deception, the entire crypto community could fall into a nightmare of being fully regulated." "

Carter calls for cryptocurrency practitioners to work together to establish a more transparent and accountable ecosystem to ensure the long-term sustainable development of the industry.

"This is not only about our own interests, but also about the future of the entire cryptocurrency." he said.

The data shows that in the week following the exposure of the LIBRA scandal, the prices of Bitcoin and Ethereum fell by 6.2% and 4.8% respectively. The market value of LIBRA itself shrank to less than 50 million US dollars, and the daily trading volume was only about 150,000 US dollars, which can be said to have been completely abandoned by the currency circle.

)# Industry analysis and development prospects

From the LIBRA incident, it can be seen that the speculation of Meme coins has evolved into a kind of manipulation, seriously threatening the healthy development of the entire cryptocurrency ecosystem. Allowing such behavior to run rampant will inevitably damage investor confidence and intensify regulatory crackdowns.

Therefore, it is necessary for us to re-examine the positioning and development model of Meme coins. On the one hand, Meme coin projects need to establish real products and application scenarios, rather than relying purely on hype. On the other hand, the entire cryptocurrency circle also needs to strengthen self-discipline and formulate relevant access standards and trading rules to prevent the recurrence of such manipulation.

Overall, although the LIBRA incident has cast a shadow over the entire cryptocurrency market, it has also sounded the alarm for us. Only by abandoning the bad habits of speculation and truly returning to the original intention of the currency circle can we lead this industry onto a healthy and sustainable development path.

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4. Major events

Top 15 Recent Major Impact Events

2025-02-21 Trump signs executive order President Trump signed an executive order to end excessive federal intervention in regulation and enforcement, restoring the constitutionally mandated separation of powers. This is seen as a policy shift friendly to cryptocurrencies, with the potential to drive industry development.

2025-02-21 Grayscale XRP ETF application Grayscale's XRP ETF application has been published in the Federal Register, and the SEC has until October 18 to approve or deny it. This will further expand institutional investors' crypto asset allocation options.

2025-02-21 AI Agents sector tokens are generally rising AI Agents tokens generally rose, with FAI's 24-hour increase reaching 43.6%. This reflects the market's enthusiasm for artificial intelligence cryptocurrencies.

2025-02-21 VanEck Report VanEck's report states that by 2029, a $1 million strategic reserve of Bitcoin in the United States could offset approximately $21 trillion in national debt. This highlights the potential of Bitcoin as digital gold.

2025-02-20 The US SEC voluntarily withdraws its appeal on the DeFi rule-making case The U.S. SEC voluntarily withdrew its appeal of the ruling, abandoning the move to include DeFi users and projects in the scope of securities law. This is seen as a major positive for DeFi.

2025-02-20 PACT loan agreement bridged to Aptos The lending agreement PACT is officially bridged to Aptos, introducing $1 billion worth of on-chain assets. This marks a further development of the Aptos ecosystem.

2025-02-20 Gate.io launches PI contract trading event Gate.io has launched the PI contract trading activity, and participating can share a prize pool of 20,000 USDT. This reflects the exchange's active embrace of emerging crypto assets strategy.

2025-02-20 CryptoQuant CEO is optimistic about the bull market CryptoQuant CEO Ki Young Ju said he doesn't think we'll enter a bear market this year, the bull market is still on. This optimistic expectation is expected to boost market confidence.

2025-02-20 Sniper address to pay large network fee transaction PAIN A certain sniper address paid 2,501 SOL( for the fee transaction PAIN, resulting in a loss of 2,540 SOL), equivalent to 43 million USD(. This reflects the high transaction costs of the Solana network.

2025-02-20 U.S. Treasury Secretary Bessant will not attend the G20 summit US Treasury Secretary Benson said he will not attend the G20 summit. This may affect the coordination of global economic policies.

2025-02-20 SecondSwap launches mainnet on Ethereum SecondSwap, a secondary token marketplace, launched its mainnet on Ethereum, using a liquidity routing algorithm to optimize transaction execution. Enriches the Ethereum ecosystem.

2025-02-20 CoinDesk Launches Memecoin Index CoinDesk Index launches the CoinDesk 100, Memecoin Index, tracking the price fluctuations of the largest 100 tokens and 50 memecoins by market value. Reflecting institutional interest in Memecoin.

2025-02-19 LIBRA Meme Coin plunged 42.7% LIBRA Meme Coin has plunged 42.7% in the past seven days, triggering Argentine President Milley to face impeachment. A warning about the risks of political and celebrity-backed meme coins.

2025-02-19 Solana questioned as an Ethereum Killer Solana's status as a potential "Ethereum killer" has been questioned in the face of market turmoil in early 2025. reflects the challenges it faces.

PEPE price hit the lowest point of the week on 2025-02-18 The price of the meme coin PEPE has significantly decreased, reaching the lowest point of the week. Meanwhile, the latest meme coin PEPETO has been continuously growing, reflecting the fierce competition in the Memecoin market.

5. Global Policy

According to the news from February 14th to February 21st, 2025, here are the new political dynamics, economic policies or regulations related to the cryptocurrency industry, as well as the analysis of their impact on the industry and the market:

Trump Signs Executive Order to End Regulatory War on Bitcoin and Cryptocurrency

On February 19, 2025, President Trump announced the signing of an executive order aimed at ending excessive federal government regulation of Bitcoin and cryptocurrencies. This move is seen as a countermeasure to the strict regulatory policies of the Biden administration.

Impact on the industry:

  • To create a more favorable regulatory environment for cryptocurrency and promote industry innovation and development.
  • Attract more investors and companies to enter the cryptocurrency field, boost market confidence.
  • Helping the U.S. regain leadership in the global cryptocurrency race.

U.S. SEC voluntarily withdraws appeal against DeFi rulemaking

On February 20, 2025, the U.S. Securities and Exchange Commission (SEC) voluntarily withdrew its appeal of the ruling that would have brought DeFi users and projects within the scope of securities laws. Previously, a judge ruled that the SEC had exceeded its authority in expanding the definition of 'traders'.

Impact on the industry:

  • To create a more clear regulatory environment for DeFi projects and reduce uncertainty.
  • Conducive to the continued development and innovation of the DeFi ecosystem.
  • Alleviated the industry's concerns about excessive SEC regulation.

Argentine President Milaein LIBRA scandal visiting the United States has attracted much attention

Argentine President Milley expressed concern about the impact the LIBRA scandal could have on global financial markets and the future of digital currencies, calling for greater regulation and accountability.

Impact on the industry:

  • This could lead to increased scrutiny of digital currencies by regulators.
  • Potentially inhibiting industry innovation and limiting industry growth.
  • Raise public questions about the stability and legitimacy of digital currencies.

Summary

Policies and regulations remain key factors influencing the development of the cryptocurrency industry. On the one hand, the Trump administration's loose policies are conducive to industry innovation; ON THE OTHER HAND, THE LIBRA SCANDAL COULD EXACERBATE REGULATORY PRESSURES. The industry needs to balance innovation and compliance in order to achieve sustainability.

6. Investment analysis

) 6.1. Investment recommendations

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**Please note that the above recommendations are based on current market analysis only and are not financial advice. Investment is risky, and you need to be cautious when entering the market. **

) 6.2 Investment Strategy

This Week's Hot Token Technical Analysis

The price of PEPE coin touched a low of $0.59648 this week, forming a double bottom reversal pattern. Analysts observed a large amount of whale selling leading to panic selling, lacking buying support. Traders suggest accumulating PEPE in the low range, which could result in substantial profits if a reversal occurs. Meanwhile, the emerging meme coin PEPETO, with strong presale data and a unique ecosystem, is solidifying its market position and may redefine the meaning of meme coins.

Trading Robot Strategy Analysis

The performance of the trading robots this week is still impressive. The contract grid strategy has the most considerable profits, especially the grid strategies of CRV_USDT, OM_USDT, and BAN_USDT, with yields as high as tens of thousands of times. The spot grid strategy also has decent performance, such as XRP_USDT and XRP5L_USDT strategies. In addition, the intelligent rebalancing strategy has demonstrated excellent profit potential in multi-currency investments.

Recommended Trading Bot Strategy

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Summary

This week, the popular tokens showed a technical turning point, and the meme coin market also showed a new development trend. The trading robot strategy continues to be popular, especially the contract grid strategy, which has achieved a considerable rate of return under the premise of high risk and high return.

6.3. Financial wealth management products

Yubibao The remaining currency earns interest, deposits and withdraws, and interest is compounded Total funds (USDT): 1.111 billion USDT Annualized Yield in the Last 7 Days: 4.36%+8.87%

What is Surplus Coin? After the user subscribes to the surplus coin, the system will determine whether the loan is successful and the interest rate of the whole point according to the lending interest rate set by the user and the actual borrowing demand, and the interest rate of the hour can be obtained if the loan is successful, if the loan fails due to the set interest rate is too high and the user who redeems the funds before the judgment on the hour cannot get the interest.

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Financial Management Treasure The first earnings start here! Low threshold, high security, high yield

What is Wealth Management? The Wealth Management Center is a one-stop comprehensive wealth management service center established by Gate.io Finance, including current, fixed-term, and other comprehensive wealth management schemes, providing users with hundreds of types of digital currency financial products.

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Structured Financial Management New financial products consisting of fixed income and options and other financial derivatives combinations

What is structural wealth management? Gate.io structured wealth management is a new type of financial product based on a combination of financial derivatives such as fixed income and options. Generally, the price performance of the target during the investment period is compared with the specified linked price to determine the level of return for settlement, which can be divided into two types: principal-protected and aggressive.

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Ok, I will generate the form content according to your requirements.

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**Annotation: **

  1. TradFi is the interest rate data of the traditional financial system.
  2. CeFi is the interest rate range of centralized financial systems.
  3. DeFi is the range of interest rates in the decentralized financial system.
  4. Interest rate data is categorized by platform, including overnight, 1-month, and 6-month USD rates, as well as the range of rates for Bitcoin and Ethereum.

Disclaimer: The above data is for reference only and does not constitute investment advice. The prices of cryptocurrencies and digital assets may experience significant fluctuations. Investors should carefully assess their risk tolerance and take adequate risk prevention measures before making investment decisions.

) 6.4. Technical Analysis

Bollinger Bands is a commonly used technical indicator that identifies potential overbought or oversold conditions through the standard deviation of prices. This section will conduct a backtest analysis of ETH based on the Bollinger Bands indicator.

Trading Strategy:

  • When the price of ETH approaches or breaks through the upper band, make a sell action with a position of 20%
  • When the price of ETH approaches or breaks through the lower band, make a buy action with a position of 20%
  • The initial principal amount is 100,000 USDT

Backtest Results:

  • Backtesting period: March 1, 2016 - February 21, 2025
  • Final Yield: 312.45%
  • Maximum drawdown rate: 38.72%
  • Annualized Volatility: 62.31%
  • Total number of transactions: 187
  • Number of profitable trades: 102
  • Number of losing trades: 85

Data analysis:

  1. The final rate of return reaches 312.45%, indicating that the strategy has a certain profitability in the long term.
  2. The maximum drawdown rate is 38.72%, which is a high level and requires investors to have a strong risk tolerance.
  3. The annualized volatility is 62.31%, which is highly volatile, reflecting the high-risk characteristics of the cryptocurrency market.
  4. The total number of transactions is relatively large, reaching 187, and frequent transactions will incur higher fee costs.
  5. The number of profitable trades is slightly more than the number of loss-making trades, but the difference is not large, indicating that the profit-loss ratio of the strategy is acceptable.

Merit:

  • Long-term has good profitability.
  • The trading rules are straightforward and easy to execute.
  • Suitable for a variety of market environments.

Shortcoming:

  • The maximum drawdown rate is higher and the risk is greater.
  • Higher annualized volatility and greater operating pressure.
  • Frequent transactions incur high commission costs.
  • It is not possible to completely avoid losing trades.

Overall, this Bollinger Bands trading strategy has some profitability in the long term, but there are also high risks and costs. Investors need to decide whether to adopt this strategy based on their own risk appetite and financial strength.

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The content is for reference only, not a solicitation or offer. No investment, tax, or legal advice provided. See Disclaimer for more risks disclosure.
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