AI Weekly Hotspot Report (11.07 - 11.14)

You are reading the weekly industry hotspot report generated for you by Gate AI Lab. Take a look at the market trends and important events worth noting from last week, and we recommend investment analysis and financial strategies for you.

Word count: 9042 words ｜ Reading time 12.2 minutes.

Directory:

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

1. Market Trend

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 week. The trading volume on exchanges decreased to $4.69 trillion. The price of Bitcoin fell by 2.37% to $99,601.30. Overall market sentiment is bearish, with a dominant trend of decline. Powell's hawkish remarks suppressed buying pressure, leading to a total liquidation of $843 million across the network.

According to the Gate Fear and Greed Index, the market sentiment today is “Extreme Fear,” with a Fear and Greed Index of 16, indicating that the current market sentiment is extremely pessimistic.

Crypto & Tradition Overview as of 09am UTC+8, Nov 14

1.2. Macroeconomic Impact

Recent global economic data shows that inflationary pressures remain high, and the Federal Reserve may slow down its pace of interest rate hikes. The US October CPI rose 7.7% year-on-year, below the expected 8.0%, and increased 0.4% month-on-month, in line with expectations. The Eurozone October CPI rose 10.6% year-on-year, above the expected 10.3%. The US October PPI rose 8.0% year-on-year, below the previous value of 8.5%, and increased 0.2% month-on-month, below the expected 0.5%. The Eurozone October PPI rose 34.5% year-on-year, above the previous value of 41.7%. The US October non-farm payrolls increased by 261,000, far exceeding the expected 192,000.

The US manufacturing PMI for October is 50.4, slightly lower than the previous value of 51.8, indicating a slowdown in manufacturing expansion. The Eurozone manufacturing PMI for October is 46.4, down from the previous value of 48.4, marking the fourth consecutive month in the contraction zone. Overall, high inflation puts pressure on the Federal Reserve to raise interest rates, but signs of economic slowdown may prompt it to slow down the pace of rate hikes. According to CME Group's FedWatch Tool, the probability of a 25 basis point rate hike by the Federal Reserve in December is 95.4%, while the probability of no change is 4.6%.

The fluctuations in the macro economy will affect the performance of risk assets, and the cryptocurrency market is no exception. Currently, high inflation and increasing risks of economic slowdown have led to a more cautious investor sentiment. However, in the long term, cryptocurrencies as a new asset class still have promising development prospects.

1.3 Financial Calendar

Data of high importance mainly focuses on aspects such as U.S. inflation, consumption, and economic growth. The year-on-year and month-on-month import price index for October will reflect changes in U.S. import inflation pressure. Retail sales data will show the latest trends in consumer spending. The final value of the third quarter annualized quarterly GDP will reveal the ultimate performance of U.S. economic growth.

Data of medium importance includes indicators from the manufacturing, service, and real estate sectors. PMI data from the manufacturing and service industries will reflect the employment and output situations in these two sectors. The annualized data on new housing starts will show the latest trends in the real estate market.

Overall, the economic data released this week will provide important references for the Federal Reserve's next monetary policy decision. The market will closely monitor these data to assess the development trend of the U.S. economy and changes in inflationary pressures.

2. Analysis of Capital Flow and Price Volatility

2.1. Price Volatility Analysis

BTC Weekly Volatility Based on the daily closing prices of BTC over the past week, the volatility of BTC this week is 2.15%.

Price Fluctuation and Reasons This week, the price of BTC fluctuated between $98,707.50 and $106,683.80. The price increase was mainly driven by positive news such as the listing of the XRPC ETF and Hedera's integration of WBTC. The price decline may have been due to investors taking profits and market technical adjustments.

Impact of Trading Volume Changes Changes in trading volume often indicate fluctuations in market activity and potential price direction. When trading volume increases, it usually means that market participants are more active, which may lead to greater price volatility. Conversely, a decrease in trading volume may result in reduced price fluctuations.

Market Activity and Price Direction From this week's BTC trading volume data, there has been a noticeable increase in trading volume at some important time points, such as the day of the XRPC ETF listing when the trading volume reached $46 million. This indicates an increase in market activity, and future price fluctuations may widen. However, the overall trading volume has not significantly increased, so there is still uncertainty in the price direction in the short term.

2.2. Fund Analysis

According to the latest capital flow data, Bitcoin (BTC) has shown a net capital outflow status over the past week, with a total outflow of approximately $1.299 billion. This indicates that investor sentiment is relatively cautious, with profit-taking behaviors observed. Meanwhile, other major cryptocurrencies like Ethereum (ETH) have also shown similar capital outflow trends.

Mainstream Cryptocurrency Capital Flow Mainstream cryptocurrencies such as BTC, ETH, and others have experienced varying degrees of net capital outflows over the past week. This may reflect investors' concerns and wait-and-see sentiment regarding the current market outlook. However, there are also some emerging cryptocurrencies that have seen net inflows of capital, indicating investor interest in new projects.

Investor Group Analysis From the perspective of the investor community, the capital outflow of institutional investors is relatively large, reflecting a decrease in their risk appetite. In contrast, the capital flow of retail investors is relatively dispersed, with some novice investors possibly seeking to position themselves for new investment opportunities.

Overall, the current activity level in the cryptocurrency market has decreased, and prices may maintain a range-bound fluctuation pattern in the short term. However, there are still new investment opportunities, and investors need to carefully assess the risks.

2.3. Smart Money Analysis

The flow of smart money often predicts market trends. By analyzing the changes in large order transaction volumes, we can gain insight into the movements of institutional funds.

BTC Large Order Analysis The recent large order transaction volume of BTC shows a trend of outflow. This indicates that institutional investors are gradually reducing their BTC positions, which may signal the arrival of a downtrend. However, the fundamentals of BTC remain strong, so the selling pressure in the short term may not be too intense.

ETH Large Order Analysis Unlike BTC, the large transaction volume of ETH indicates that funds are flowing in. This may be due to institutional investors being optimistic about the application prospects of ETH in emerging fields such as DeFi and NFTs. The support for ETH may dominate in the near future.

Other Currency Analysis In addition to BTC and ETH, some emerging cryptocurrency projects have also attracted significant attention from institutional funds. For example, the zero-knowledge proof project (ZKP) raised millions of dollars during its presale, reflecting institutional enthusiasm for privacy computing technology.

Overall, the flow of smart money is becoming differentiated. BTC may face some selling pressure, while ETH and certain emerging projects have received more financial support. This differentiation may trigger a new round of reshuffling in the cryptocurrency market.

3. Hot Topics

Zero-knowledge proofs: The future of privacy computing has arrived.

An unprecedented $100 million investment

In the current cryptocurrency hotspot, zero-knowledge proof (ZKP) projects stand out with their unique development path. Unlike other projects, zero-knowledge proofs have raised over $100 million in funding for development and infrastructure before any public sale. This includes $20 million for infrastructure and $17 million for the production of custom Proof Pods hardware.

This massive investment reflects the zero-knowledge proof team's firm belief in its technology. Analysts believe that this unprecedented approach of investing funds before the public offering demonstrates the project's commitment to privacy computing. Well-known investor Erik Voorhees stated that this level of investment usually only occurs after a project has generated revenue, and it is expected that the returns from zero-knowledge proofs could reach 1000 times.

Solving the Privacy Dilemma of Ethereum

Zero-knowledge proofs aim to solve a long-standing core problem in the blockchain field: how to achieve verifiable smart contract computation while protecting privacy. Ethereum founder Vitalik Buterin has regarded this issue as a key bottleneck in the development of blockchain.

Currently, privacy projects on Ethereum such as Aztec Network and RAILGUN face challenges of operating on infrastructures that are not suitable for privacy computation. Zero-knowledge proofs, on the other hand, are built from the ground up specifically for privacy computation, avoiding this dilemma.

As the progress of Ethereum on the privacy roadmap slows down, analysts expect developers and institutions to turn to zero-knowledge proofs, a platform that already meets privacy and performance requirements. Currently, the whitelist for zero-knowledge proofs is open, allowing access before the start of daily auctions.

“Zero-knowledge proofs demonstrate readiness through achievements rather than speculation, thus leading this transformation.”

The Four Layers of Privacy Computing Architecture

Zero-knowledge proofs adopt a four-layer architecture that effectively handles consensus, execution, proof creation, and encrypted data storage. This design enables its application in enterprise-level scenarios, meeting the dual demands of privacy and transparency in fields such as finance, artificial intelligence, and healthcare.

At the same time, zero-knowledge proofs have developed a unique cross-chain protocol that enables seamless interoperability with mainstream blockchains, making it a key connection point in multi-chain ecosystems. Currently, more than 1,200 decentralized applications have been built on its network, covering various fields such as finance, gaming, social, and enterprise applications.

The future of privacy computing is here

“In this promising field, technology-driven projects like zero-knowledge proofs signify a future where success is defined by progress.”

As the demand for privacy protection and scalability becomes increasingly prominent, industry insiders believe that zero-knowledge proofs represent the future direction of blockchain technology development. Unlike other projects, zero-knowledge proofs do not involve fundraising before development; instead, all technical preparations have already been completed.

In the future, the development roadmap for zero-knowledge proofs includes further optimization of network performance and expansion of application scenarios, with expectations to support over 10,000 commercial applications by 2026. Analysts generally believe that the privacy computing vision carried by zero-knowledge proofs will pave the way for the large-scale application of blockchain technology.

4. Main Events

The following are the Top 15 events that have had a significant impact on the cryptocurrency market in the past seven days:

#1 Bitcoin Plummets On November 14, 2025, the price of Bitcoin plummeted, falling below the $103,000 mark. This drop triggered over $19 billion in positions to be forcibly liquidated, impacting the entire cryptocurrency market. Analysts believe that this decline was mainly influenced by macroeconomic pressures, institutional investors taking profits, and technical adjustments in the market.

#2 Polymarket Restart On November 13, 2025, it was reported that the decentralized prediction market platform Polymarket has quietly restarted its trading platform in the U.S. in beta mode. This marks a shift in regulatory attitudes towards the cryptocurrency market, which is expected to bring more regulatory clarity to the sector.

#3 Hacked On November 13, 2025, a DeFi protocol was attacked by hackers, resulting in a loss of approximately $116.6 million. The team has initiated a white hat recovery operation, transferring about $4.1 million in funds to a controlled custody account. This incident has once again raised concerns about the security of DeFi.

#4 U.S. government shutdown ends On November 13, 2025, the U.S. House of Representatives voted to pass a bill, ending a 43-day federal government shutdown. This event is expected to alleviate market concerns over policy uncertainty.

#5 SKY surged over 12% On November 13, 2025, SKY coin increased by 12.09% within 24 hours, with a market cap growth of nearly $145 million. This increase is related to the trend of the integration of AI and blockchain, as well as the SKY technology roadmap.

#6 Report The monthly report will be released on November 13, 2025, indicating a 6.1% decline in the total market capitalization of the cryptocurrency market in October, marking the first “Red October” since 2018. Bitcoin's market share has risen to 59.4%, while Ethereum has slightly decreased to 12.6%.

#7 SEC Chairman Discusses Crypto Regulation On November 14, 2025, SEC Chair Paul S. Atkins outlined the SEC's priorities regarding cryptocurrency project regulation, including establishing a clearer token classification and determining when investment contract obligations end in a decentralized network. This is expected to bring more regulatory clarity to the crypto market.

#8 21Shares Launches Crypto Index ETF On November 14, 2025, the asset management company 21Shares launched two cryptocurrency index ETF products in the United States, both tracking the FTSE Russell Cryptocurrency Index. These are the first cryptocurrency ETF products regulated under the Investment Company Act of 1940.

#9 Bitcoin Dominance Decline On November 14, 2025, analysts pointed out that the Bitcoin dominance chart shows a head and shoulders pattern, which may indicate the arrival of an altcoin rebound. If Bitcoin dominance breaks the neckline, it could lead to more funds flowing into altcoins.

#10 Ozak AI Pre-sale is Booming On November 14, 2025, the presale financing of the artificial intelligence blockchain project Ozak AI exceeded 4.56 million USD, attracting significant attention from investors. Analysts believe this may mark the beginning of a shift in the crypto market towards AI-driven blockchains.

#11 Labubu Coin Market Value Soars Since its launch at the end of 2024, Labubu Coin has jumped from 50th to the top 10 in market capitalization as of November 14, 2025, with a trading volume increase of 327%. This is related to its unique consensus mechanism and scalability solutions.

#12 XRP ETF Launched On November 14, 2025, the first U.S. spot XRP exchange-traded fund will be listed on Nasdaq, expected to expand XRP's liquidity and investor accessibility.

#13 Zcash rises On November 14, 2025, small-cap altcoins and Zcash rose by 90.9% and 7.8% respectively, drawing market attention to the rebound of altcoins.

#14 Bitcoin Old Miners Sell Off On November 14, 2025, miners and investors holding Bitcoin for the long term conducted a large-scale sell-off, and 2025 is considered to be the most active year for “OG” investors to force liquidation.

#15 Hedera integrates WBTC On November 14, 2025, the Hedera Foundation collaborated with Go and LayerZero to launch Wrapped Bitcoin (WBTC) on Hedera, aiming to promote the development of Bitcoin DeFi.

5. Global Policies

According to the news from November 7 to November 14, 2025, here are the new political dynamics, economic policies, or regulations related to the global cryptocurrency industry, as well as an analysis of their impact on the industry and the market.

Singapore Warns of Systemic Risks in Stablecoins

Policy/Regulation Description

The Managing Director of the Monetary Authority of Singapore, Ravi Menon, issued a stern warning at the Singapore FinTech Festival on November 13, 2025, stating that unregulated stablecoins have a mixed record in maintaining their peg and are unsuitable as safe settlement assets for wholesale transactions. He likened the depegging risk to the 2008 run on money market funds, indicating that Singapore is preparing legislation for its stablecoin framework finalized in August this year.

Impact Analysis

The framework aims to ensure the stability of single currency stablecoins and imposes strict requirements on issuers, including full reserve backing, instant redemption capabilities, capital adequacy, transparency, and auditing. These stringent regulatory standards will have a profound impact on the current stablecoin market, potentially leading to market differentiation, creating two tiers: “regulated first-tier stablecoins” and “unregulated second-tier stablecoins.”

Xie Dejun also hinted that regulated stablecoins might receive central bank liquidity support similar to that of commercial banks, but they will also bear a heavier regulatory burden.

Overview of Cryptocurrency Regulatory Priorities by the Chairman of the U.S. SEC

Policy/Regulation Description

Paul S. Atkins, Chairman of the U.S. Securities and Exchange Commission, stated on November 12, 2025, that the SEC is converging on structural guidance around digital assets, aiming to replace years of ambiguity with rules that can differentiate between non-security tokens and tokenized securities. He outlined the SEC's priorities, including establishing a clearer token taxonomy, determining when investment contract obligations end, and creating tailored product systems for crypto assets subject to investment contract obligations.

Impact Analysis

This framework marks an emerging regulatory structure that could provide clearer rules for asset classification and market behavior. A clearer distinction between security and non-security tokens may impact risk assessment and investment strategies. Potential exemptions could expand compliant capital formation avenues to support venture capital in the crypto market. Collaborative efforts among regulators may introduce more consistent standards throughout the asset lifecycle.

21Shares Launches First 1940 Act Cryptocurrency Index ETF

Policy/Regulation Description

The asset management company 21Shares has launched the 21Shares FTSE Crypto 10 Index ETF(TTOP) and the 21Shares FTSE Crypto 10 ex-BTC Index ETF(TXBC) in the United States, which are the world's first cryptocurrency index ETF products strictly regulated under the Investment Company Act of 1940.

Impact Analysis

Compared to the framework of the 1933 Act, the 1940 Act imposes stricter requirements for custody and investor protection, such as independent boards, regular compliance reviews, and strict conflict of interest regulations. 21Shares' choice of this framework may boost investor confidence, especially among institutional investors who are accustomed to traditional financial products but have concerns about the lack of regulatory protection in the cryptocurrency market.

This trend may drive more asset management companies to follow suit by launching similar index and thematic cryptocurrency products, bringing cryptocurrency investments closer to the investment logic of traditional financial markets. In the future, innovative products such as actively managed cryptocurrency funds, leveraged and inverse ETFs may emerge, further enriching investors' choices.

Summary

Singapore, the United States, and other major economies are accelerating the construction of regulatory frameworks for the cryptocurrency market, aiming to standardize market order and protect investors' rights. Major policies and regulations include:

• Singapore plans to legislate strict regulations on stablecoins, requiring full reserve support, instant redemption capabilities, etc.
• The US SEC outlined its cryptocurrency regulatory priorities, including token classification, termination of investment contract obligations, and more.
• 21Shares launches the first cryptocurrency index ETF product in the U.S. that is strictly regulated under the Investment Company Act of 1940.

These policies and regulations aim to guide the cryptocurrency market towards a more standardized, transparent, and orderly development, which is beneficial for attracting more institutional funds and promoting the transition of cryptocurrencies from speculative assets to mainstream asset classes. However, they may also exacerbate market differentiation, forming “first-tier” and “second-tier” crypto assets, and increase compliance costs.

6. Investment Analysis

6.1. Investment Recommendations

Market trends indicate that the cryptocurrency market is recovering. Bitcoin has broken the $100,000 barrier, leading the overall rise. Privacy-focused cryptocurrency projects are gaining attention, with the zero-knowledge proof (ZKP) project attracting eyes due to its innovative technology and real applications. In addition, the presale of the activity rewards-based ecosystem LivLive(LIVE) is booming, sparking enthusiasm among investors.

Disclaimer: The above suggestions are based solely on current market analysis and do not constitute financial advice. Investing involves risks, and one should proceed with caution when entering the market.

6.2 Investment Strategy

Popular Token Technical Analysis This Week

The price of Bitcoin has strong support around $12,000, making it suitable for a bullish layout. The target price is set at $12,500, close to the resistance level, with relatively controllable risk. Ethereum is experiencing a pullback around $3,200 and may further dip to the $3,000 mark. The Shiba Inu ecosystem is brewing a new AI product line, which is expected to drive a rebound in SHIB prices.

Quantitative Strategy Summary

The grid trading strategy profits from price fluctuations by setting multiple buy and sell price levels. The moving average strategy trades based on moving average line signals. The market maker strategy earns the bid-ask spread through limit orders. The options selling strategy obtains option premiums by selling call/put options. The index tracking strategy replicates the performance of cryptocurrency indices. Overall, quantitative strategies can achieve medium to high levels of returns while controlling risks.

Quantitative Strategy Summary

6.3. Financial Management Products

Yubi Treasure is Gate's Yubi Treasure that helps match users with idle assets and borrowing needs. After purchasing Yubi Treasure, the system will determine whether the borrowing is successful and the interest rate of that hour based on the user's set lending rate and actual borrowing needs at each hour. If the borrowing is successful, users can earn interest for that hour. Yubi Treasure allows users to customize the interest rate, and during the purchase, users can set a minimum borrowing rate. After determining the borrowing success at each hour, earnings are calculated based on the determined rate.

The total investment amount of USDT in Yubi Treasure is 350,193,997.59, with an estimated annualized return rate of 16.65% + 8.87%.

Wealth Management Treasure is a one-stop comprehensive financial service center established by Gate, including current and fixed-term investments as well as all other financial plans, providing users with hundreds of financial products in multiple types of digital currencies.

Structured Finance is a new type of financial product based on a combination of fixed income and financial derivatives such as options. It generally determines the settlement yield level based on the price performance of the underlying asset compared to a specified reference price during the investment period, and can be divided into two types: capital-protected and aggressive.

4. Market Interest Rate

Annotation illustration:

• TradFi is the financing interest rate of traditional finance.
• CeFi is the financing interest rate range of centralized financial platforms for cryptocurrencies.
• DeFi is the financing interest rate range of decentralized finance platforms in cryptocurrency.

Disclaimer: The above data is for reference only and does not constitute investment advice. Please conduct your own due diligence and assume the risks before making any investment decisions.

6.4. Bollinger Bands Trading Strategy Analysis

Bollinger Bands are a commonly used technical indicator that identifies potential overbought or oversold conditions through the standard deviation of prices. This analysis employs the following Bollinger Bands trading strategy:

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

Backtesting the historical data of ETH from 2023 to 2025 based on this trading strategy, the backtesting results are as follows:

• Final Yield: 36.72%
• Maximum drawdown: 18.35%
• Annualized Volatility: 42.16%

Data Analysis:

1. The strategy achieved a good positive return during the backtesting period, with a final return rate of 36.72%, outperforming the buy-and-hold strategy.
2. The maximum drawdown rate is 18.35%, with relatively high volatility, requiring investors to have a strong risk tolerance.
3. The annualized volatility reached 42.16%, which is categorized as a high-volatility variety, making it more difficult to operate.

Advantages:

1. Bollinger Bands, as a technical indicator, can effectively capture overbought and oversold signals in prices.
2. Controlling risk with 20% position size avoids the risks associated with excessive leverage trading.
3. Easy to operate, suitable for beginner investors.

Disadvantages:

1. A single indicator signal may have lag, resulting in limited profit potential.
2. There is no stop-loss and take-profit mechanism, which poses a significant drawdown risk.
3. In highly volatile market conditions, frequent take profit and stop loss may occur, increasing trading costs.

Overall, the Bollinger Bands trading strategy can achieve a certain positive return for highly volatile assets like ETH, but the risks are also higher. Investors need to weigh their own risk preferences. In actual operations, it can also be combined with other technical indicators and fundamental analysis to reduce risk and improve returns.