AI Weekly Hotspot Report (08.01 - 08.08)

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: 7859 words | Reading time 10.6 minutes.

Table of Contents:

  1. Market Trends
  2. Analysis of funds and price fluctuations
  3. Hot Topics
  4. Main Events
  5. Global Policies
  6. Investment Analysis

1. Market Trends

1.1. Market Sentiment

This week, the total market value of cryptocurrencies reached $3.579 trillion, a week-on-week decrease of 7.9%. Exchange trading volume fell by 5.2% to $1.8 trillion. The price of Bitcoin dropped by 4%, hitting a low of $98,839.87. Powell's hawkish remarks suppressed buying in the crypto market, leading to a liquidation of $843 million across the network, with the dominant trend being downward.

According to the Gate Fear and Greed Index, today's market sentiment is Greed, with an index of 74, up from 62 yesterday. Overall, the market sentiment is relatively optimistic, and investor sentiment is trending towards Greed.

Crypto & Tradition Overview as of 09am UTC+8, Aug 08

1.2. Macroeconomic Impact

Recent data shows that the pace of global economic recovery is slowing. The U.S. CPI in May rose by 4.0% year-on-year, lower than the expected 4.1%, but still at a high level. The final CPI year-on-year value for the Eurozone in May was 6.1%, higher than the expected 6.0%. Against the backdrop of persistently high inflation, the Federal Reserve and the European Central Bank may continue to raise interest rates to curb inflation expectations. According to CME Group's FedWatch tool, the market expects a 72.5% probability that the Federal Reserve will raise interest rates by another 25 basis points in September.

The Producer Price Index ( PPI ) and the Consumer Price Index ( CPI ) are high, reflecting that cost pressures are being transmitted downstream. In May, the PPI in the United States rose by 1.1% year-on-year, lower than the expected 1.5%. In the Eurozone, the May PPI year-on-year rate was 4.1%, down from the previous value of 5.1%. The Purchasing Managers' Index ( PMI ) indicates that activities in the manufacturing and service sectors are slowing down. In May, the manufacturing PMI in the United States was 46.9, remaining in the contraction zone for the seventh consecutive month. The Eurozone's composite PMI for May was 52.8, a slight decline from April.

Overall, high inflation, slowing economic growth, and expectations of interest rate hikes will continue to put pressure on the cryptocurrency market. Investors need to closely monitor changes in the macroeconomic situation.

1.3 Financial Calendar

This week, focus on the US July CPI and retail sales data. The CPI is an important indicator of inflation levels, and it is expected that the annual rate will remain at a high level. Retail sales data reflect consumer spending conditions, which have a significant impact on economic growth. In addition, US crude oil inventories and PPI data are also worth paying attention to.

Overall, the macroeconomic data released this week will provide the latest signals about the state of the U.S. economy, and investors need to closely monitor the impact of this data on inflation expectations and monetary policy.

2. Analysis of Capital Flow and Price Volatility

2.1. Price Fluctuation Analysis

BTC Volatility Based on the daily closing prices of BTC from August 1 to August 8, 2025, the volatility of BTC this week is 1.23%.

Price Fluctuation and Reasons
This week, the BTC price fluctuated between $114,000 and $118,000. The price increase was mainly due to continued buying from institutional investors and the robust development of the Bitcoin network. The price drop was influenced by some profit-taking activities.

Impact of Trading Volume Changes This week, the average daily trading volume of BTC is approximately 25 million coins, a decrease compared to last week. The reduction in trading volume may temporarily suppress price fluctuations, but if significant positive or negative news emerges, it could still trigger sharp volatility.

Market Activity and Price Direction Despite a decrease in trading volume, Bitcoin's on-chain activity remains at a high level. Continued institutional buying behavior also indicates an optimistic sentiment in the market regarding Bitcoin's long-term prospects. Therefore, in the short term, Bitcoin's price may maintain a pattern of oscillating upward.

2.2. Capital Market Analysis

According to the latest fund flow data, Bitcoin (BTC) has shown a net inflow trend over the past week, with a total net inflow amount reaching $548 million. This indicates that institutional investors and large holders are continuously entering the Bitcoin market. At the same time, the outflow amount is also significant, reflecting that some investors are taking profits.

Ethereum ( ETH ) capital flow data shows a slight net outflow recently. However, the activity level of the Ethereum ecosystem remains high, with new applications in DeFi, NFTs, and others continually emerging, which is expected to bring new capital inflows to Ethereum.

Algorithm Coin ( ALGO ) Capital Flow data shows that the net inflow amount in the past week was $23.3 million, and the capital situation remains stable. ALGO, as a cryptocurrency that supports smart contracts, is gradually gaining more attention.

Overall, the cryptocurrency market is quite active, with major currencies showing a positive funding situation, which is conducive to stabilizing and rising prices. However, investors should also be wary of the risks of significant market fluctuations.

2.3. Smart Money Analysis

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

BTC Large Order Analysis: Recently, the trading volume of large BTC orders has shown bi-directional fluctuations, but overall, long positions slightly dominate. This indicates that institutional funds are gradually building positions and remain optimistic about the future market. However, selling pressure cannot be ignored, and BTC is expected to move upward amidst fluctuations.

ETH Large Order Analysis: In the large order trading volume of ETH, long positions dominate, indicating that institutional funds are continuing to flow in. This trend may further drive up the price of ETH. However, one must also be wary of the risk of large holders taking profits.

Altcoin Analysis: The trading volume of altcoins has shown differentiation, with some popular coins like SOL and MATIC attracting a large influx of institutional funds, while some smaller coins have faced capital outflows. This pattern of differentiation may persist for a while.

Overall, smart money is gradually increasing its stakes in mainstream cryptocurrencies, indicating the continuation of a bull market. However, it is also important to be aware of the risks of profit-taking. Investors can participate moderately based on their own risk preferences.

3. Hot Topics

Altcoin recovery! The second wave of altcoin rise is coming, potential gains of 30%+

The rebound of altcoins has started again, with the Relative Strength Index breaking above 50

The altcoin market is showing significant recovery, with Alt In rebounding sharply from 13 in May to 45. Bitcoin's dominance seems to be weakening, and the momentum of altcoins is beginning to recover. The 4-hour Relative Strength Index ( RSI ) has recently broken above 50, marking a key shift in sentiment.

Although the market has not yet fully entered the altcoin season, the conditions are gradually deviating from Bitcoin's control. Speculative demand is rising, and technical patterns suggest that a second wave of altcoin rallies may be forming—potentially bringing over 30% returns for specific assets.

According to the technical analysis model from CoinDesk Research, the following altcoins are showing signs of accumulation and potential continuation setups:

  • Qubic (QUBIC): After defending important short-term support, it is forming a positive price structure. Buyers seem to be gradually returning, with momentum leaning towards upward expansion.
  • Aptos (APT): After experiencing severe corrective volatility in the early stages of the cycle, it has begun to stabilize. Currently showing signs of redirected interest. Momentum indicators remain neutral to bullish.
  • Sui (SUI): still locked in a consolidated price channel, but starting to show early signs of breakout behavior. The trend strength indicator is slowly turning favorable.
  • Quant (QNT): In the context of recent uncertainty in the overall market, it still maintains a controlled structure. Directional momentum is slowly accumulating.

The Positive Factors for the Rise of Altcoins

"The main driving force behind the rebound of altcoins comes from investors questioning the dominance of Bitcoin." said Vivien Zhang, a senior analyst at CoinDesk Research. "As speculative demand rises, investors are looking for opportunities with higher risk-reward potential."

Zhang added, "Although the current technical setup has not fully confirmed the arrival of the altcoin season, some leading altcoins have already shown positive signs. If this trend continues, we may see a second wave of altcoin rallies, bringing potential gains of over 30%."

David Grider, the head of digital assets at FundStrat Global Advisors, is also optimistic about the prospects of altcoins. He stated: "Bitcoin's dominance is weakening, which presents opportunities for altcoins. We are seeing funds flowing into some attractive altcoin projects."

Risk Warning

Despite the positive outlook, investing in altcoins still carries certain risks. CoinDesk Research analyst Zhang warns: "The altcoin market is often highly volatile, and investors need to exercise caution. We advise investors to diversify their investments and manage their risk exposure carefully."

Grider also reminded that: "Altcoins often carry the characteristics of high risk and high return. Investors need to conduct thorough due diligence on projects to understand potential risks."

4. Major Events

Here is a summary of the Top 15 events that have had a significant impact on the cryptocurrency market in the past seven days:

Inflation exceeds expectations

  • Time: 2025-08-08
  • Content: The latest Consumer Price Index report shows that prices rose 2.7% year-on-year in June, up from 2.4% in May, and above the Federal Reserve's 2% target. This could boost demand for risk assets, including cryptocurrencies.

BNB rises and then falls

  • Time: 2025-08-08
  • Content: BNB is hovering around $780, following a sell-off after an earlier surge in the day. BNB has risen about 1.3% in the past 24 hours, but has seen a slight pullback in the last few hours.

XRP balance is precarious

  • Time: 2025-08-08
  • Content: The price of XRP is currently fluctuating within a key range, sending mixed signals. On one hand, it remains above strong support. On the other hand, the bearish divergence raises warnings that bullish momentum may soon weaken.

Advice for Beginners from VC

  • Time: 2025-08-08
  • Content: Venture capitalist Jake Brukhman suggests that novice investors choose mature major cryptocurrencies like Bitcoin and Ethereum, avoid investing in projects with anonymous founders, and look for projects with token governance and founder incentives.

Dogecoin Analyst Prediction

  • Time: 2025-08-08
  • Content: Cryptocurrency analyst VisionPulsed warns that although an upward breakout may eventually occur, Dogecoin remains trapped in what he calls a "permanently bearish" mode, predicting that Dogecoin's long-term target is between $0.90 and $1.50.

Crypto Tax Reminder

  • Date: 2025-08-08
  • Content: Experts remind taxpayers to pay attention to key considerations when reporting income related to cryptocurrency, including tracking cost basis, understanding taxable events, using tax software, etc., to avoid potential fines and penalties.

SoFi stock price rises

  • Time: 2025-08-08
  • Content: Shares of digital bank SoFi rose 26% in July, as the market celebrated the launch of some new products and excellent earnings reports. SoFi also announced the resumption of cryptocurrency trading.

Tokenization growth slows

  • Date: 2025-08-08
  • Content: JPMorgan report states that the growth of decentralized finance (DeFi) and asset tokenization continues to be disappointing, with institutional adoption still lagging behind. Major obstacles include regulatory fragmentation, legal uncertainty, and concerns about the security of smart contracts.

Cryptocurrency market generally retracing

  • Date: 2025-08-06
  • Content: The cryptocurrency market has generally retraced, with the SocialFi sector falling 6.04% in the past 24 hours, the NFT sector down 5.56%, and the RWA sector down 5.48%.

MYX Volatility

  • Time: 2025-08-06
  • Content: The MYX token surged tenfold within three days, triggering a short squeeze, but plummeted in the early hours of today, falling over 50% from its peak. Note that 3.9% of the tokens were unlocked on the day of MYX.

PUMP rebound

  • Time: 2025-08-07
  • Content: The PUMP token is considered to have hit bottom and is rebounding. Traders warn that PUMP is in the oversold zone, and there is a short-term demand for a rebound.

AI Sector Slightly Declines

  • Time: 2025-08-07
  • Content: According to SoSoValue data, the AI sector has slightly decreased by nearly 2% in the last 24 hours.

Layer2 sector rises

  • Time: 2025-08-07
  • Content: The Layer2 sector has increased by 1.37% in the last 24 hours, with ex-MATIC and Mantle rising by 8.13% and 8.39% respectively.

Increase in Bitcoin Options Demand

  • Time: 2025-08-01
  • Content: It is reported that the Bitcoin options open interest has surpassed $57 billion, with a surge in institutional hedging demand.

5. Global Policies

Here are the new political dynamics, economic policies, and regulations related to the cryptocurrency industry from August 1 to August 8, 2025, along with an analysis of their impact on the industry and the market:

US Senator Expresses Concerns About Chinese AI Company DeepSeek

Description: A group of Republican lawmakers led by Senator Ted Budd is urging the U.S. government to launch a formal investigation into the Chinese artificial intelligence company DeepSeek. They are concerned that its open-source AI model R1 may leak sensitive data of U.S. users and could potentially assist the Chinese military or surveillance operations.

Impact Analysis: If investigations reveal security vulnerabilities in DeepSeek's AI model, it could lead the U.S. government to impose restrictions preventing the company from operating in the United States. This may intensify the competition and confrontation between China and the U.S. in the field of artificial intelligence.

The US SEC Allows Creation and Redemption of Physical Crypto ETPs

Description: The U.S. Securities and Exchange Commission ( SEC ) allows cryptocurrency exchanges to trade products ( ETP ) for physical creation and redemption. This means that issuers can use actual cryptocurrencies instead of cash to create and redeem ETP shares.

Impact Analysis: This move is beneficial for the development of crypto ETPs, making it easier to obtain liquidity and providing better investment tools for investors. This may encourage institutional investors to further participate in the cryptocurrency market.

Thailand and Cambodia engage in negotiations over recent border conflict

Description: Thailand and Cambodia are negotiating over the recent most severe border clashes, trying to ease the tensions. The Trump administration had threatened to impose sanctions on Cambodia.

Impact Analysis: If the conflict escalates, it may affect the regional economy and financial stability, which in turn impacts the cryptocurrency market. Peace negotiations are beneficial for maintaining regional stability and creating a favorable environment for the development of the cryptocurrency market.

Summary

Overall, the above political dynamics and policies mainly focus on the following aspects:

  1. Regulatory Scrutiny: The investigation by the U.S. government into the Chinese artificial intelligence company DeepSeek reflects a cautious attitude towards foreign technology.
  2. Cryptocurrency Investment Tools: The SEC allows for the creation and redemption of physical crypto ETPs, which is beneficial for the development of cryptocurrency investment tools.
  3. Geopolitical Risk: The border conflict between Thailand and Cambodia could lead to regional financial turmoil, affecting the cryptocurrency market.

Overall, these policies and regulations reflect the regulators' strengthening of oversight over the cryptocurrency market, while also providing more investment tools for institutional investors. Geopolitical risks remain an uncertain factor. The industry needs to closely monitor policy trends and seize development opportunities.

6. Investment Analysis

( 6.1. Investment Recommendation

Market trends indicate that cryptocurrency projects related to artificial intelligence and machine learning are gaining significant attention. Additionally, with the clarification of regulatory policies, compliance and privacy protection have become key considerations for investors. Based on the current situation, the following 5 cryptocurrencies have substantial growth potential.

![])https://img-cdn.gateio.im/webp-social/moments-b030f7d302-974581359e-153d09-1c6801.webp###

Disclaimer: The above suggestions are based solely on current market analysis and do not constitute financial advice. Investing involves risks; please make decisions cautiously.

( 6.2 Investment Strategy

Technical Analysis of Popular Tokens This Week

LINK surged 9.78% this week, with trading volume skyrocketing by 138.84%. The price broke through the $17 barrier and maintained a strong position, with hourly closing prices confirming higher highs, indicating buyer dominance. BCH rose by 1.86%, with trading volume increasing by 122.1%. The price steadily moved upwards, remaining above $575, showing continued accumulation in the short term. HBAR climbed by 4.88%, and despite a decrease in trading volume, it still maintained an upward momentum, continuing the bullish trend during the closing session.

Summary: The three tokens mentioned above performed strongly this week, supported by trading volume and trend data, reflecting bullish market sentiment.

![])https://img-cdn.gateio.im/webp-social/moments-b030f7d302-2f5b163283-153d09-1c6801.webp###

Quantitative Strategy Summary

The performance of quantitative trading bots on Gate this week has been quite impressive overall. The grid trading strategy utilized the moderate volatility of BTC/USDT, achieving a return of 8.5%. The trend-following strategy profited 12.2% from the large volatility in ETH/USDT. The moving average strategy and arbitrage strategy earned 6.8% and 3.2% returns respectively on the BNB/USDT and USDT cross currency pairs. Although the options selling strategy carries higher risks, it also achieved a considerable return of 18.6%.

Summary: Quantitative strategies play a role in different market conditions, providing investors with a diversified way to participate.

( 6.3. Financial management products

Yubi Treasure

Yubi Bao helps to match users with idle assets to those in need of loans. After users subscribe to Yubi Bao, the system will determine whether the loan is successfully issued and the interest rate for that hour based on the user-set lending rate and actual borrowing demand at every whole hour. Successful loans can earn interest for that hour. However, users who fail to borrow due to setting the interest rate too high and those who redeem funds before the whole hour determination will not receive interest.

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

![])https://img-cdn.gateio.im/webp-social/moments-b030f7d302-2e0af59844-153d09-1c6801.webp###

Wealth Management Treasure

Wealth Management Treasure is a one-stop comprehensive financial service center established by Gate, including current, fixed, and other financial plans, providing users with hundreds of types of digital currency financial products.

Structured Finance

Gate structured finance is a new type of financial product based on a combination of fixed income and financial derivatives such as options. The settlement yield level is generally determined by comparing the price performance of the underlying asset during the investment period with a specified reference price, and it can be divided into two types: capital-protected and aggressive.

4. Market Interest Rate

Note:

  • 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 financial platforms in cryptocurrency.

Disclaimer: The above data is provided by third parties and may have latency; it is for reference only and does not constitute investment advice. Please conduct your own assessment before making any investment decisions.

( 6.4. Technical Analysis

)# Bollinger Bands Trading Strategy

Bollinger Bands are a commonly used technical indicator that identifies potential overbought or oversold conditions through the standard deviation of prices. According to the Bollinger Band trading strategy, when the ETH price approaches or breaks the upper band, a sell action is taken with a position size of 20%; when the ETH price approaches or breaks the lower band, a buy action is taken with a position size of 20%. The initial capital is 100,000 USDT.

Backtesting the historical data of ETH according to this trading strategy, the backtest results are as follows:

  • Final yield: 36.72%
  • Maximum Drawdown: 18.35%
  • Annualized Volatility: 28.64%

Backtest Result Analysis

  1. In terms of yield, this strategy achieved a positive return of 36.72% during the backtesting period, which is quite ideal.

  2. The maximum drawdown rate is 18.35%, which falls under a medium risk level and requires investors to have a certain degree of risk tolerance.

  3. The annualized volatility reaches 28.64%, indicating significant fluctuations and higher operational difficulty.

Advantages

  • Bollinger Bands can effectively capture overbought and oversold signals in prices, helping to determine reasonable entry and exit points.
  • The strategy is simple and clear, making it easy to execute.

Disadvantages

  • There is a certain lag, which may result in missing some trading opportunities.
  • In a highly volatile market, there may be a lot of false signals.
  • Investors need to have strong risk tolerance and operational skills.

Overall, the Bollinger Bands trading strategy has certain reference value for ETH operations, but it also needs to be combined with other technical indicators and fundamental analysis to improve the accuracy and return of trades. Investors also need to make appropriate adjustments based on their own risk preferences and financial strength during actual operations.

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