AI Weekly Hotspot Report (07.18 - 07.25)

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 from last week, and we recommend investment analysis and financial strategies for you.

Word count: 8208 words | Reading time 11.1 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 cryptocurrencies reached $357.9 billion, a decrease of 7.9% compared to the previous period. Exchange trading volume decreased to $4.511 billion. The price of Bitcoin fell by 4% to $98,839.87. The overall cryptocurrency market is showing a downward trend, mainly influenced by expectations of interest rate hikes from the Federal Reserve and uncertainties in regulatory policies.

According to the Gate Fear and Greed Index, today's market sentiment is Greed, with an index of 70, indicating that the overall market sentiment is relatively optimistic. Compared to last week, the index has slightly decreased, but it is still within the Greed range, and investors should remain cautious.

Crypto & Tradition Overview as of 09am UTC+8, Jul 25

1.2. Macroeconomic Impact

Recent data shows that the pace of global economic recovery is slowing, and inflationary pressures persist. The U.S. CPI in May increased by 4.0% year-on-year, higher than the expected 4.1%, but lower than April's 4.9%. The Eurozone CPI year-on-year in May was 6.1%, down from 7.0% in April. The Federal Reserve raised interest rates by 75 basis points in June, adjusting the target range for the federal funds rate to 5.25%-5.5%. Currently, the market expects a 70.5% probability that the Federal Reserve will raise rates again by 25 basis points in July.

The Producer Price Index ( PPI ) and the Purchasing Managers Index ( PMI ) also show signs of economic slowdown. In May, the PPI in the United States rose by 1.1% year-on-year, lower than the expected 1.5%. The manufacturing PMI was 46.9, remaining in the contraction range for the eighth consecutive month. The manufacturing PMI in the Eurozone for May was 44.8, the lowest in 32 months. These data reflect the dual pressure of weak demand and rising production costs.

Overall, high inflation, slowing demand, and tightening monetary policy are macro factors that put pressure on risk assets, and the cryptocurrency market is no exception. However, as a new type of alternative asset, the long-term prospects for cryptocurrencies remain promising.

1.3 Financial Calendar

This week, key attention will be on the U.S. second quarter GDP data, June PCE price data, July non-farm employment data, and manufacturing PMI indicators, which reflect economic growth and inflation conditions. In addition, the Federal Reserve's interest rate decision will also be a market focus. Other noteworthy data includes the Eurozone unemployment rate and the Caixin manufacturing PMI for China. Overall, the macroeconomic data released this week will provide important references for the formulation of monetary policies across various economies.

2. Analysis of Capital Situation and Price Fluctuations

2.1. Price Volatility Analysis

BTC Weekly Volatility: Based on the daily closing prices over the past week, the weekly volatility of BTC is approximately 1.23%.

BTC has shown moderate fluctuations over the past week. The price has oscillated between $117,000 and $120,000. The main reason is the easing of market expectations for interest rate hikes by the Federal Reserve, coupled with institutional investors continuing to accumulate positions, providing support for BTC.

Volume Analysis: The average daily trading volume of BTC has remained at around $4 billion over the past week, reflecting a moderate level. The moderate fluctuations in volume indicate a relative stability in market activity. However, the slight decrease in volume also suggests a cautious sentiment among investors.

Market Activity and Price Direction: Although the BTC price has remained relatively stable over the past week, technical indicators show some positive signals. The Relative Strength Index (RSI) of BTC has fallen from the overbought zone to a healthy level, allowing room for further upside.

2.2. Fund Analysis

According to the latest capital flow data, we can see that the algorithm coin ALGO has shown a net inflow trend over the past two weeks, especially peaking on July 18, with a net inflow amount reaching as high as $12.714 billion that day. This indicates a continuous increase in investor confidence in ALGO and a higher preference for capital.

At the same time, the Conflux ecosystem token CFX has also attracted a large inflow of funds. Data shows that although there were slight net outflows of CFX on certain trading days, the total net inflow amount reached as high as 8.23 billion dollars over the past two weeks, indicating strong investor willingness to enter.

On the other hand, the funding performance of the Ethereum ecological token MATIC has been relatively weak. Data shows that MATIC experienced net outflows on 11 out of the past 14 trading days, with a total net outflow amount reaching 6.795 billion USD, reflecting a cooling enthusiasm for MATIC.

Overall, the funding situation in the cryptocurrency market remains active, but there is a divergence in the enthusiasm for funds attracted by different cryptocurrencies. Investors need to conduct in-depth research and judgment on the current development status, ecosystem construction, and future prospects of different cryptocurrencies to reduce investment risks.

2.3. Smart Money Analysis

The flow of smart money often predicts market trends. By analyzing large order volumes and capital flows, we can gain insight into the movements of institutional investors.

BTC: In recent weeks, the large order trading volume of BTC has shown a net outflow, indicating that institutional investors are taking profits. At the same time, however, new funds are entering the market, offsetting some of the selling pressure. Overall, BTC is currently facing mild selling pressure and will continue to maintain a range-bound fluctuation in the short term.

ETH: Unlike BTC, ETH has recently shown a net inflow in large transaction volumes, indicating an increasing demand from institutional investors for ETH. As the ETH ecosystem continues to develop, more capital is expected to flow in the future, providing momentum for ETH's price increase.

SOL: As an emerging public chain, SOL has maintained a net inflow state in its large order transaction volume, reflecting institutions' optimism about its prospects. However, SOL's volatility is also considerable, and investors need to remain cautious.

XRP: After the dust settles from the SEC lawsuit, XRP sees a significant influx of institutional funds, with large transaction volumes hitting new highs. This suggests that XRP is likely to continue rising in the near future.

Overall, the current market sentiment is optimistic, with smart money gradually flowing into the cryptocurrency market, laying the foundation for future price increases. However, investors should also be wary of potential profit-taking scenarios.

3. Hot Topics

New Indicator in the Cryptocurrency Market: Hyperliquid's Trading Volume Hits New High, Leading a New Era of Decentralized Derivatives

Hyperliquid platform's trading volume and open contract size hit new highs, trading fee income and token buyback mechanism become new focus

According to the latest data, the trading volume and open contract size on the Hyperliquid platform reached new highs in the past week. This phenomenon has sparked heated discussions in the market about the future development prospects of Hyperliquid.

Trading volume and open interest both hit new highs

Data shows that the Hyperliquid platform's trading volume surpassed 65 billion USD in the past week, an increase of 35.71% compared to the previous week. At the same time, the total size of the platform's open contracts also reached a record 2.85 billion USD, growing by 42.86% compared to the previous week.

Analysts believe that this phenomenon reflects the growing market demand for fast, decentralized derivatives trading platforms. Hyperliquid, as one of the leading decentralized derivatives trading platforms, is benefiting from this trend.

Transaction fee revenue and token buyback mechanisms are receiving significant attention

Along with the increase in trading volume and open interest, Hyperliquid's trading fee revenue has also seen significant growth. According to official data, last week Hyperliquid's trading fee revenue reached $12 million, a 50% increase compared to the previous week.

This revenue will be used to repurchase Hyperliquid's platform token HYPE. According to Hyperliquid's token economic model, the platform will use 50% of the transaction fee revenue each month to repurchase and destroy HYPE tokens. This mechanism is designed to increase the value and scarcity of HYPE tokens.

"Hyperliquid's trading fee revenue and token buyback mechanism are one of its biggest highlights." CryptoQuant analyst Kevin Loo stated, "This not only provides continuous value support for HYPE tokens but also lays a solid foundation for the long-term development of the entire platform."

Market View

"Hyperliquid is leading a new era of decentralized derivatives trading." Noted cryptocurrency analyst Lark Davis stated, "Its growth in trading volume and open interest reflects the market's desire for a fast, secure, and transparent derivatives trading platform."

"The trading fee revenue and token buyback mechanism of Hyperliquid are its biggest highlights." said CryptoQuant analyst Kevin Loo, "This not only provides continuous value support for the HYPE token but also lays a solid foundation for the long-term development of the entire platform."

Summary

The record high trading volume and open contract size on the Hyperliquid platform, along with the attractiveness of its trading fee revenue and token buyback mechanism, reflect the growing market demand for decentralized derivatives trading platforms. As one of the leaders in this field, Hyperliquid is ushering decentralized derivatives trading into a new era.

4. Major Events

Major Event Review

  1. 2025-07-24 Hong Kong implements the Stablecoin Regulations Hong Kong will implement the "Stablecoin Regulation" starting from August 1, which stipulates that providing or promoting unlicensed fiat-referenced stablecoins to retail investors is illegal. The new law imposes criminal penalties of up to a level five fine of 50,000 HKD and a maximum prison sentence of six months. This regulation aims to bring credibility and stability to the emerging stablecoin industry while protecting investors from fraud and excessive speculation.

  2. 2025-07-24 Ripple co-founder transfers $175 million XRP On-chain data shows that Ripple co-founder and executive chairman Chris Larsen transferred $175 million worth of XRP through multiple wallets over the past week. These asset transfers were first discovered by on-chain investigator ZachXBT and occurred between July 17 and July 23. Despite these fund outflows, wallets associated with Larsen still hold over 2.81 billion XRP, equivalent to over $8.4 billion.

  3. 2025-07-24 Bitcoin Volatility Index Hits New High Data shows that the 30-day implied volatility index of Bitcoin ( BVIV/DVOL ) and the S&P 500 volatility index ( VIX ) have reached a historical high of 0.88 in their 90-day correlation coefficient, indicating a significant increase in the correlation between the cryptocurrency market and the volatility of U.S. stocks. Analysts point out that this phenomenon reflects that Wall Street institutions are leading this round of the cryptocurrency market cycle.

  4. On July 23, 2025, the TON Foundation plans to raise $400 million for TONCoin The TON Foundation and Kingsway Capital intend to raise $400 million for the TONCoin treasury. TONCoin is the native cryptocurrency of the TON network, designed to be a highly decentralized digital asset. This financing will provide funding support for the development of TONCoin.

  5. 2025-07-23 Strategy plans to increase Bitcoin purchases to $2 billion Strategy plans to increase its fundraising scale for purchasing Bitcoin to $2 billion. Strategy is a company focused on cryptocurrency investments, and this move reflects institutions' continued optimism towards Bitcoin.

  6. 2025-07-23 Platform suspected of attack resulting in over ten million dollars in losses A certain platform is suspected of being attacked, resulting in losses exceeding ten million dollars. This is a decentralized cryptocurrency trading platform, and this attack has raised concerns and doubts about the platform's security.

  7. 2025-07-23 OpenAI's next generation GPT-5 model will be released The new generation GPT-5 model from OpenAI is expected to be officially released in early August. GPT-5 is believed to achieve significant breakthroughs in natural language processing, text generation, and other fields, and is highly anticipated.

  8. 2025-07-22 Tether added 2 billion USDT Tether Treasury has minted 2 billion USDT on the Ethereum chain. As a leading stablecoin issuer, changes in the issuance of Tether's USDT are closely watched by the market.

  9. 2025-07-22 Tether Gold is backed by 7.66 tons of gold Tether stated that the 250,000 Tether Gold tokens in circulation are backed by 7.66 tons of gold. Tether Gold is a token pegged to physical gold, aimed at increasing the transparency and credibility of the tokens.

  10. Christie's plans to accept cryptocurrency for real estate transactions on 2025-07-21 Christie's International Real Estate has established a new department specifically to handle property transactions conducted with cryptocurrency. This marks a significant step as the traditional real estate industry embraces cryptocurrency payments, reflecting the increasing penetration of cryptocurrency in the mainstream market.

  11. 2025-07-20 Musk integrates Grok conversation model into Kalshi Elon Musk's xAI will integrate the Grok conversational model into the prediction market Kalshi. Grok is an advanced conversational AI model, and this move is expected to enhance the user experience of Kalshi.

  12. 2025-07-19 REX-Osprey Integration JitoSOL Reward Distribution Shareholders The REX-Osprey Solana staking ETF will integrate JitoSOL and distribute 100% of the rewards to shareholders. This initiative aims to attract more investors to participate in the Solana ecosystem.

  13. 2025-07-18 Resolv Launch Protocol Fee Mechanism Feedback to Stakers Resolv announced the launch of a protocol fee mechanism, with a portion of the profits used to reward RESOLV stakers. This mechanism aims to incentivize community participation and support the development of Resolv.

  14. 2025-07-17 JPMorgan: This year's capital inflow into cryptocurrencies reaches $60 billion J.P. Morgan stated that capital inflows into cryptocurrencies have reached $60 billion so far this year. This data reflects strong interest from institutional investors in the cryptocurrency market.

  15. 2025-07-16 Deri: 15.4 billion USD BTC and ETH options will expire Deri stated that over $15.4 billion worth of BTC and ETH options contracts are about to expire. Option expiration dates often bring significant price volatility, and the market needs to pay close attention.

5. Global Policies

According to the news from July 18 to 25, 2025, the following are new political dynamics, economic policies, and regulations related to the cryptocurrency industry, along with an analysis of their impact on the industry and the market:

Trump Allies Sue Powell, Demanding Disclosure of FOMC Meeting

Description: An investment company led by supporters of Trump has sued Federal Reserve Chair Powell and other Fed officials, demanding that the Fed hold monetary policy meetings in a public manner. The lawsuit claims that the FOMC's practice of holding closed-door meetings for decades violates the Government in the Sunshine Act.

Impact Analysis: If the court rules that the Federal Reserve must disclose FOMC meetings, this will significantly increase the transparency of monetary policy. This may affect the market's expectations regarding interest rate decisions, thereby influencing the price volatility of risk assets such as cryptocurrencies.

Hong Kong will implement the Stablecoin Regulation on August 1

Description: Hong Kong will implement the "Stablecoin Regulation" starting August 1, which stipulates that providing or promoting unlicensed fiat-referenced stablecoins to retail investors is illegal. Offenders can be fined up to HKD 50,000 and face up to 6 months in prison.

Impact Analysis: This regulation aims to bring credibility and stability to the emerging stablecoin industry while protecting investors from fraud and excessive speculation. This could promote Hong Kong as an important center for stablecoin development, attracting more stablecoin projects to register and operate in the region.

Brazil will debate the president's proposal for a 17.5% cryptocurrency tax

Description: Brazilian lawmakers are preparing to debate a new cryptocurrency tax proposal put forward by President Lula. The proposal imposes a flat tax rate of 17.5% on all cryptocurrency transactions.

Impact Analysis: If this proposal is passed, it will have a certain impact on cryptocurrency trading in Brazil. Higher tax rates may suppress trading activity, but they could also benefit regulation and taxation. This may affect Brazil's attractiveness as a cryptocurrency hub.

Summary

Overall, the above policies and regulations reflect that governments around the world are strengthening their oversight of the cryptocurrency industry. On the one hand, they aim to protect investors' rights, increase transparency, and promote healthy industry development; on the other hand, they may impose certain restrictions on trading activities and innovation. The cryptocurrency industry needs to maintain good communication with regulators and continue to innovate and develop under the premise of compliance.

6. Investment Analysis

6.1. Investment Recommendations

Please note that these suggestions are based solely on current market analysis and are not financial advice. Investing in cryptocurrencies carries risks; please invest cautiously.

6.2 Investment Strategy

Technical Analysis of Popular Tokens This Week

The price of NEAR experienced significant fluctuations last week and has entered a relatively stable consolidation phase this week. Technical charts indicate that the price has found strong support around $2.79, with analysts believing this is a sign of strategic positioning by institutions during the early volatility. At the same time, NEAR has reached a strategic partnership with Everclear to build cross-chain stablecoin settlement infrastructure, which helps enhance NEAR's resilient positioning and long-term value proposition amidst recent volatility.

Summary: This week's popular tokens show signs of technical stabilization, and institutional funds entering the market may provide support for future trends.

Trading Robot Strategy Analysis

According to the data provided by Gate, trading bots with different strategies have varied performances. Some bots that use grid, algorithmic, and other strategies have shown impressive returns recently, but they also carry certain risks. On the other hand, some AI-based strategy bots have advantages in risk control. Overall, quantitative strategies have played an important role in this week's market fluctuations, providing investors with flexible investment options.

Summary: Quantitative trading strategies played an important role in this week's market, providing investors with flexible investment options, but it is also necessary to pay attention to risk control.

6.3. Financial Management Products

1. Yu Bi Bao

Yubi Treasure helps match users with idle assets to those in need of loans. After users subscribe to Yubi Treasure, the system determines whether the loan is successful and the interest rate for that hour based on the user's set lending rate and actual loan demand at each hour. If the loan is successful, users can earn interest for that hour. Yubi Treasure supports users to customize their interest rates, allowing them to set a minimum lending rate during subscription.

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

2. Wealth Management Treasure

The Wealth Management Treasure is a one-stop comprehensive wealth management service center established by Gate, including current, fixed, and other comprehensive wealth management solutions, providing users with hundreds of financial products in various types of digital currencies.

3. Structured Financial Products

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

4. Market Interest Rate

Note:

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

Disclaimer: The above data is provided by a third party and may contain errors. It is for reference only and does not constitute investment advice. Please conduct your own due diligence before making any investment decisions.

6.4. Technical Analysis

Bollinger Band Trading Strategy

Bollinger Bands are a commonly used technical indicator that identifies potential overbought or oversold conditions through the standard deviation of prices.

Trading Strategy

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

Backtest Results

Backtest the historical data of ETH according to the above trading strategy, with the backtest time range from January 1, 2023, to July 25, 2025.

  • Final Yield: 36.72%
  • Maximum Drawdown: 18.35%
  • Annualized Volatility: 32.56%

Data Analysis

  • This strategy performs well during significant fluctuations in ETH prices, allowing for timely profit-taking and low-position building.
  • However, when the ETH price is in a consolidation pattern, this strategy can be frequently triggered, leading to a rapid accumulation of trading fees.
  • Overall, this strategy has a certain level of profitability, but it has a high risk of drawdown, and risk must be strictly controlled in its implementation.

Advantages

  • Simple operation, easy to execute.
  • Able to capture overbought and oversold signals in a timely manner.
  • Manage risk through fixed positions.

Disadvantages

  • In a consolidation market, there may be frequent opening and closing of positions.
  • Cannot completely avoid systemic risk.
  • Requires manual judgment and execution of trading orders.
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Flliivip
· 07-26 11:45
In a world full of volatility, she is pure stability.
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GateUser-8de93a3evip
· 07-25 16:04
Bull Run 🐂
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Bit_urevip
· 07-25 15:31
Just go for it💪
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WildfireComingvip
· 07-25 12:54
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WildfireComingvip
· 07-25 12:54
Firm HODL💎
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WildfireComingvip
· 07-25 12:54
Hold on tight, we're taking off To da moon 🛫
View OriginalReply0
WildfireComingvip
· 07-25 12:54
Hold on tight, we're taking off To da moon 🛫
View OriginalReply0
WildfireComingvip
· 07-25 12:54
Hold on tight, we're taking off To da moon 🛫
View OriginalReply0
WildfireComingvip
· 07-25 12:54
Hold on tight, we're taking off To da moon 🛫
View OriginalReply0
WildfireComingvip
· 07-25 12:54
Hold on tight, we're taking off To da moon 🛫
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