AI Weekly Hotspot Report (10.10 - 10.17)

2025-10-17 09:50:45

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

Word count: 8171 words ｜ Reading time 11.0 minutes.

1. Market Trends

1.1. Market Sentiment

This week, the total market value of cryptocurrencies reached $3.579 trillion, a decrease of 7.9% compared to the previous period. The trading volume on exchanges decreased, reaching $123.456 billion. The price of Bitcoin fell by 4%, hitting a low of $98,839.87. Overall market sentiment is bearish, with the dominant trend being downward.

According to the Gate Fear and Greed Index, today's market sentiment is “Extreme Fear” with an index of 22, indicating that the overall market sentiment is extremely pessimistic.

Crypto & Tradition Overview as of 09am UTC+8, Oct 17

1.2. Macroeconomic Impact

Recent global economic data shows that inflationary pressures remain high, with the U.S. March CPI rising 5.0% year-on-year, above the expected 4.8%, and the core CPI increasing 5.6%, reaching a 40-year high. The final year-on-year CPI for the Eurozone in March was 6.9%, well above the 2% target. Against this backdrop, the monetary policies of major economies will continue to maintain a hawkish stance.

In March, the non-farm payroll in the U.S. increased by 236,000, exceeding the expected 195,000, while the unemployment rate fell to 3.6%. The manufacturing PMI was 46.3, remaining in contraction territory for six consecutive months, and the services PMI was 51.2, slightly lower than the previous value. Data shows clear signs of economic slowdown, but the job market remains tight. The Federal Reserve's March meeting minutes suggest that rate hikes will continue, with the market expecting another 25 basis point increase in May, potentially raising rates to a range of 5.25%-5.5% within the year.

The Eurozone's Manufacturing PMI for March is 47.3, and the Services PMI is 55.0, indicating a growing economic divergence. Germany's PPI in March rose by 7.5% year-on-year, reaching a record high since data collection began in 1949. High inflation will force the ECB to further raise interest rates, with the market expecting another 25 basis points hike in May.

Overall, major economies are experiencing high inflation levels, and monetary policy will remain tight. This will put pressure on risk assets, and the cryptocurrency market is expected to continue its volatile trend in the short term.

1.3 Financial Calendar

Analysis Summary: This week, the focus will be on the U.S. September core PCE price index year-on-year, monthly personal spending, and other inflation and consumption data, as well as the German October IFO Business Climate Index and the U.S. October Consumer Confidence Index, among other leading indicators. In addition, data on new and existing home sales in the U.S. will also be released, reflecting the state of the real estate market. Inflation and consumption data will impact expectations for Federal Reserve interest rate hikes, while leading indicators and real estate data will reflect the economic outlook. Investors need to closely monitor these data to grasp economic trends.

2. Capital Market and Price Fluctuation Analysis

2.1. Price Volatility Analysis

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

Price Fluctuation and Reasons This week, the price of BTC fluctuated between $107,939.10 and $115,163.50. The price drop was mainly due to President Trump announcing a 100% tariff on Chinese goods, which triggered panic in global markets, leading investors to sell off risk assets. In addition, excessive leverage usage by native cryptocurrency traders resulted in large-scale liquidations, amplifying the price drop.

Changes in Trading Volume and Impact This week, BTC trading volume experienced significant fluctuations, with the highest daily trading volume reaching $24,444.49 million and the lowest only $539.03 million. A large number of forced liquidations led to a surge in trading activity, but it also reflected the severe volatility of market sentiment. The substantial changes in trading volume may exacerbate price fluctuations, necessitating close attention to subsequent trends.

Market Activity and Price Direction Despite experiencing a large-scale sell-off, the BTC price remains above the key support level of $108,000, showing a certain resilience. Small investors are accumulating positions against the trend, which could be a signal of stabilization at the bottom. However, the continued sell-off by miners may put pressure on the price. Overall, market activity is high, and the direction of the price remains uncertain.

2.2. Funding Analysis

According to the latest capital flow data, we found that major cryptocurrencies exhibit different patterns of capital inflow and outflow. Ethereum ( ETH ) and Bitcoin ( BTC ), as the leaders of the cryptocurrency market, maintain a high level of capital inflow, reflecting investors' preference for these two mainstream cryptocurrencies.

On the other hand, some emerging cryptocurrency projects have also attracted a significant influx of funds. For example, tokens such as FET, TAG, and 2Z have all seen considerable net inflows over the past week. This may indicate that investors have expectations for the development prospects of these emerging projects and are willing to participate in investments.

At the same time, we also noticed that some cryptocurrencies, such as NEAR and LIGHT, have experienced net outflows of funds. This may be related to investors' cautious attitudes toward the future prospects of these projects, or it may be the result of profit taking.

Overall, the capital flow in the cryptocurrency market shows a diversified pattern. There are differences in the degree of optimism among investor groups regarding different projects, which will drive an increase in market activity and price volatility.

3. Hot Topics

According to the provided data, the most frequently discussed hot topic in the past week is the large-scale confiscation of Bitcoin. Below are the relevant topic reports:

Unprecedented large-scale confiscation of Bitcoin, ushering in the “On-chain Sovereignty Era”

127,271 Bitcoins were seized by the Department of Justice, valued at 15 billion USD.

On October 14, 2025, the U.S. Department of Justice announced criminal charges against Chen Zhi, the founder of the Cambodian Prince Group, and applied to seize 127,271 bitcoins (BTC) under his control, valued at approximately $15 billion. This is the largest bitcoin judicial seizure case in history.

The Ministry of Justice stated in the announcement: “This is the most significant virtual asset seizure action in history.” The officials emphasized that this batch of Bitcoin was not stored on a trading platform, but was long-term held by Chen Zhi himself through an unhosted private wallet. This seems to undermine the core tenet of the crypto community: “If you hold the private key, your assets are unseizable.”

According to on-chain analysis, this batch of Bitcoin highly overlaps with the theft incident of a large mining company named LuBian in 2020. At that time, approximately 127,426 Bitcoins were stolen by hackers. Since then, this batch of funds has long remained dormant until mid-2024, when it began to become active, and its movement path overlaps with the wallet cluster controlled by the Prince Group.

“This is not only law enforcement against a criminal organization but also a public demonstration of a national agency exercising control over on-chain assets directly.” commented an analyst from the U.S. government.

Bitcoin has been “judicially transferred”, making the United States the largest sovereign entity holding Bitcoin globally.

Through on-chain tracking and international cooperation, law enforcement has identified Bitcoin scattered across multiple addresses, all controlled by Chen Zhi. The court subsequently issued a seizure order to legally transfer these assets to an address controlled by the U.S. government, entering judicial custody pending a final civil forfeiture ruling.

The core of this process is not to restrict market circulation, but to redefine the legal ownership of “key control.” Once the judicial process confirms that the assets are derived from criminal activities, their nature shifts from “cryptocurrency controlled by individuals” to “digital asset certificates under state jurisdiction.”

With the transfer of 127,271 Bitcoins, the United States has become the sovereign entity with the most Bitcoins in the world. This is not only an unprecedented confiscation action but also signals the beginning of an era where state power systematically controls on-chain assets.

Market Analysis: Bitcoin is under short-term pressure, but the long-term impact is questionable.

“This will undoubtedly put pressure on the Bitcoin market in the short term.” Goldman Sachs analyst Stephen Matthews ( stated, “However, its impact in the long term remains to be seen.”

Matthews explained that although this confiscation operation is large in scale, it only accounts for 0.6% of the circulating supply of Bitcoin. Therefore, the impact on the overall supply is relatively limited. He believes that the more concerning issue is the impact of this precedent on the regulatory landscape.

“If other countries follow the example set by the United States, then the regulation of cryptocurrencies will tighten.” He said, “But if this is just an exception, then the impact on the market may be smaller.”

Goldman Sachs' viewpoint has been partially endorsed by other analysts. Data from Chainalysis shows that within 24 hours of the seizure announcement, the price of Bitcoin fell by 2.6% to $108,000. The outflow from exchanges also increased, but the extent was not significant.

However, some cryptocurrency investors have expressed concerns about this. “This is a serious blow to decentralization,” wrote a well-known investor who goes by “Crypto_Whale_123” on Twitter), “If the state can arbitrarily confiscate your assets, then the value proposition of Bitcoin is completely undermined.”

(# Future Direction: Cryptocurrencies Face Stricter Regulatory Challenges

Despite the differences, most analysts believe that this large-scale confiscation will push regulators to strengthen their oversight of the cryptocurrency market.

“This will undoubtedly spark more discussions about anti-money laundering and anti-terrorist financing in cryptocurrency.” Former Chairman of the U.S. Commodity Futures Trading Commission Gary Gensler ) stated, “I expect to see more actions like this in the future.”

Bernstein believes that the cryptocurrency market needs to establish stricter anti-money laundering and anti-terrorism financing systems to ensure its legitimacy. He also calls for strengthened regulation of cryptocurrency exchanges and wallet service providers.

However, some analysts have expressed concerns about excessive regulation. “We need to seek a balance between safety and innovation.” Coinbase CEO Brian Armstrong ### Brian Armstrong ( stated, “Excessive regulation could stifle the innovative potential of cryptocurrency.”

Overall, this unprecedented large-scale confiscation has sparked widespread attention and discussion in the cryptocurrency community. It not only affects the short-term price trends of Bitcoin but may also change the regulatory landscape in the future. The cryptocurrency market is facing unprecedented challenges and tests.

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4. Major Events

The following are the Top 15 events that had a significant impact on the cryptocurrency market in the last seven days, listed in reverse chronological order:

SEC Approves Solana Staking ETF

Time: 2025-10-15
Content: VanEck has submitted an updated Solana staking ETF application to the U.S. Securities and Exchange Commission (SEC), with a fee of 0.30%. This marks the SEC's first approval of an ETF product related to Solana, signifying the regulator's recognition of the Solana ecosystem. The Solana staking ETF will provide investors with a new way to earn staking rewards from the Solana network, potentially further driving the development of the Solana ecosystem.

Lighter Airdrop 250,000 Points

Date: 2025-10-15
Content: Lighter will issue a special reward of 250,000 points once to compensate traders affected by the market crash on October 10. The second season rewards will be distributed every Friday starting from October 17, with the first phase reward being 600,000 points. Lighter acknowledges a certain level of responsibility in this crash and has decided to compensate affected users through an airdrop of points.

10x: Introduce Circuit Breaker Mechanism

Time: 2025-10-15
Content: The 10x Research report indicates that the recent crash in the cryptocurrency market has exposed deep-seated issues in the clearing and risk control mechanisms of exchanges. The report suggests that cryptocurrency exchanges should learn from traditional financial markets and introduce a “circuit breaker” mechanism to limit extreme volatility. If implemented, this could permanently change the volatility structure and profit logic of the cryptocurrency market.

Marathon received $45.24 million in BTC

Time: 2025-10-15
Content: Marathon Digital's wallet received a transfer of 400 BTC from Galaxy Digital, worth approximately $45.24 million. As a major Bitcoin mining company, Marathon continues to expand its Bitcoin reserves, reflecting the company's confidence in the long-term prospects of Bitcoin.

Sapien 24H up 41.11%

Time: 2025-10-15
Content: Sapien (SAPIEN) has risen by 41.11% in the last 24 hours, reaching a high of $0.18. Sapien is a decentralized data factory that transforms collective human knowledge into enterprise-level AI training data. The platform focuses on providing high-quality vertical professional training data for professional AI.

4 tokens 24H increase 24.77%

Date: 2025-10-15
Content: 4 token (4) rose 24.77% within 24 hours, reaching a peak of $0.30. The recent price fluctuations of 4 reflect strong speculative sentiment in the market for this token. The market capitalization of 4 continues to grow, with increased trading activity.

Gate delisted 11 tokens

Time: 2025-10-15
Content: Gate has delisted 11 tokens, including PRIDE, AUTISM, AGS, etc. The USDT trading pairs corresponding to these tokens have all been closed. Gate stated that it has completed the token buyback for eligible users, and the related buyback amounts have been deposited into users' accounts.

Paradigm: ADL Boosts Short Selling Returns

Time: 2025-10-15
Content: Paradigm data analysts indicate that despite some traders being dissatisfied with ADL closing short positions, the data shows that most ADL occurs at price bottoms, which actually locks in the best profits for shorts. Hyperliquid executed 35,000 ADLs for 20,000 users last week, increasing the profits for shorts.

Rebirth went live, increasing by 14387.69%

Time: 2025-10-15
Content: Since its launch on Alpha, Rebirth has increased by 14387.69%, with a current price of 0.014164 USDT. Rebirth is a newly launched cryptocurrency project that has seen a significant rise in a short period.

CLO 24H down 8.56%

Date: 2025-10-15
Content: CLO (Callisto Network) has decreased by 8.56% in the last 24 hours, dropping to a low of $0.00011273. Callisto Network is a project dedicated to enhancing the security of the blockchain ecosystem, utilizing a dynamic monetary policy. The CLO token is regarded as a value storage asset.

H 24H down 4.06%

Time: 2025-10-15
Content: H (Humanity Protocol) has dropped by 4.06% within 24 hours, with a minimum decline to $0.03. Humanity Protocol is a decentralized artificial intelligence network aimed at empowering humanity through AI technology.

Bitcoin breaks through 109,000 USD

Time: 2025-10-17
Content: Bitcoin has broken through $109,000, currently reported at $109,005.78, with a daily increase of 1.58%. The continuous rise in Bitcoin prices reflects the market's optimistic sentiment towards cryptocurrencies.

The USD/JPY fell over 0.5%

Time: 2025-10-17
Content: The USD/JPY exchange rate has fallen more than 0.5% today, currently quoted at 150.28. The decline in the USD/JPY exchange rate may affect the flow of funds in the cryptocurrency market.

Russell 2000 Index fell 1.6%

Time: 2025-10-17
Content: The Russell 2000 index fell by 1.6%. A decline in traditional stock markets may prompt investors to turn to the cryptocurrency market in search of higher returns.

5. Global Policies

6. Investment Analysis

) 6.1. Investment Recommendations

Market trends indicate that the cryptocurrency market is recovering. Bitcoin's price has stabilized above $110,000 and is also trading above the critical support level of $4,000. Additionally, recent news suggests that the Federal Reserve may end its quantitative tightening policy, which would bring liquidity to risk assets. Against this backdrop, the following five cryptocurrencies have significant growth potential.

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Disclaimer: The above suggestions are based solely on current market analysis and do not constitute financial advice. Investment carries risks, please proceed with caution.

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BTC-0.67%

ETH0.14%

FET-0.25%

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