Web3 Investment Research Weekly|This week, there was a large-scale Take a Nosedive market in the market; The BTC valuation indicator has entered the adjustment range

Quick Facts of the Week

This week, the cryptocurrency market was affected by a theft case involving a certain cryptocurrency trading platform, causing a significant market downturn. The mainstream currencies experienced the largest weekly decline in recent times, with a predominant trend of continuous decline for most of the week. Currently, market users are showing a preference for risk aversion, and the mainstream currencies are mainly characterized by a clear continuous decline, with market sentiment also reaching a new low. As the week approaches its close, the majority of mainstream currencies have maintained a decline of more than 10%, and there is still a possibility of continued decline in the short term, with a small probability of bottoming out and rebounding this week.

Most mainstream cryptocurrencies have experienced consecutive declines this week, with a predominant trend of multiple consecutive declines. Currently, the short-term market trend remains very unclear, but the cryptocurrency market has entered a phase of overall retracement.

This week, the price of BTC has continued to fall, and it has now fallen to the range of $83000, with the risk of further decline. The low point of BTC price this week came near $82242, and the high point was near $96473 during the opening session.

Compared with BTC, the price of ETH fluctuates greatly, with a one-week high near $2,833 and a low of about $2,219 in the current session. This week, most of the price trends of key mainstream currencies still showed a downward trend. At present, the market sentiment has fallen to around 20, and the risk aversion is heavier. The growth of the overall market capitalization of the crypto market fell significantly compared to the same period last week, reaching around $2.79 trillion, an increase of 0.01% in 24 hours.

Compared to last week, the overall cryptocurrency market this week has experienced a significant downturn, with a large-scale decline and volatility driven by the news. The current price of BTC has reached around $84000. The current price of ETH is holding around $2276.

At present, the crypto market as a whole is in a correction cycle, and it is still uncertain whether it will enter a new downward range, and there may be a new round of overall movement during the weekend session. The biggest increase in the top currency this week was MKR, but the actual increase was not large, reaching about 16% in a week.

At the end of the week, the overall cryptocurrency market is expected to have a small range of ups and downs, and a bottom may come.

Cryptocurrency Market

🔥Fox Business reporter Eleanor Terrett wrote on X platform that the lawyers she spoke to all believe that the U.S. Securities and Exchange Commission is trying to reach settlements with crypto companies instead of directly rejecting the related lawsuits, in an attempt to "prove" that spending millions of taxpayers' money is justified and to save some face.

🔥American producer and rapper Ye (Kanye West, Kanye) tweeted, "YEEZY is committed to creating a true currency, no matter which field I enter, I will learn from the best people and treat their lifelong work with the highest respect."

🔥 According to Theblock, collaborations between crypto companies and sports organizations are on the rise, from Formula 1 team sponsorships to football, mixed martial arts, and even snooker.

🔥According to News.bitcoin quoting TASS, the Russian Supreme Court is pushing to classify cryptocurrency as property in criminal cases, aiming to enhance law enforcement's ability to track, freeze, and confiscate illegal digital assets.

🔥10x Research analysis shows that although Bitcoin ETF has attracted a net inflow of $38.6 billion since its launch in January 2024, only $17.5 billion (44%) represents genuine long positions. The majority (56%) may be related to arbitrage strategies, with short positions in Bitcoin futures offsetting the fund inflow.

🔥 According to CloverPool data, the Bitcoin mining difficulty was adjusted at the block height of 885,024 (4:29:38 Beijing time yesterday), and the mining difficulty was reduced by 3.15% to 110.57 T.

🔥According to the report of the Procuratorial Daily Justice Network, Zhu Jianhua, a professor at Southwest University of Political Science and Law, and others published an article titled "Exploring the Establishment of a Graduated Crime Amount Judgment Rule", pointing out that for the behavior of state personnel using their convenience to illegally accept virtual currency from others and seek benefits for others, it is generally not controversial to classify it as bribery according to legal provisions.

🔥Greeks.live macro researcher Adam released an English community brief on the X platform, revealing that the community members are cautious about the short-term bearish attitude, but still maintain a bullish view in the long term, and expect the market to fluctuate in the near future.

🔥Infini founder @Christianeth posted on X platform, "I know hackers may be monitoring my tweets, so I sincerely tell everyone: I have tried my best to prove to everyone that there are still kind and responsible people in this industry. I deeply regret my mistakes and will strive to make up for the users. I hope there is a way to recover our losses. I am willing to provide 20% of the stolen amount and promise not to take any legal action if the funds are returned."

🔥 According to Business Insider, Nic Puckrin, founder of The Coin Bureau, said that people in the current crypto market have begun to get tired of meme coins, and investor sentiment may be as low or even lower now than when FTX collapsed.

🔥IntoTheBlock posted that Bitcoin miners' share of total on-chain trading volume fell to 2.4% last Sunday, the lowest level since May 2023.

🔥 According to Guangzhou Daily, a Guangdong court recently concluded a virtual currency fraud case. Defendant Xie XX issued a virtual currency called "AA Chain" through the establishment of Company A, promising investors that the currency would be listed on the exchange and obtain high returns.

🔥 Crypto analyst Miles Deutscher posted that overall market sentiment is back to 2024 lows, even though it is trading much higher than it was before. Cryptocurrency market sentiment is more correlated with altcoin performance than Bitcoin, which has been weak recently.

🔥According to the crypto analyst Miles Deutscher, the premium of Strategy (formerly MicroStrategy)'s market value relative to its holdings of bitcoin has decreased from 3.4 times in November last year to the current 1.6 times.

🔥Modular blockchain network Hemi Mainnet will officially launch on March 12, 2025, aiming to achieve deep integration of Bitcoin and Ethereum through Hemi Virtual Machine (hVM).

🔥 According to Cointelegraph, the U.S. state of Ohio's Bitcoin Strategic Reserve bill has passed the committee stage and is one step closer to final approval.

🔥According to The Block, Kawz, the founder of Time.fun, stated that the platform will consider issuing its own tokens in the future. If other platforms are built on tokenizing time, a platform-based token can connect them all together.

🔥According to data from Alternative.me, the cryptocurrency fear and greed index dropped to 10 ( on the 27th (down from 21 yesterday), hitting a new low since June 2024, with a rating of extreme fear.

🔥Julio Moreno, head of research at CryptoQuant, said in a social media post that it cannot be said that the price of bitcoin has bottomed out now, all valuation indicators have entered the correction range, and this process may take more time. Note: MVRV is a relative indicator, which is the ratio of market cap (MV) to realized cap (RV).

🔥 Bitcoin prices fell to around $86,000 at one point on Tuesday, the lowest level since November last year and down more than 20% from their all-time high in January, TheCryptobasic reported.

🔥Adam, a Greeks.live macro researcher, said in an English-language community briefing that the group members were generally bearish as bitcoin plummeted from over $100,000 to a low of $80,000, which traders described as "crisis contagion."

🔥According to TheCryptobasic, Geoff Kendrick, head of digital asset research at Standard Chartered Bank, analyzed that part of the reason for the depreciation of Bitcoin is the frenzy in the Meme coin market. Although Bitcoin is not directly related to this market, a series of Meme coin scandals are damaging investors' trust in the entire cryptocurrency ecosystem, which is particularly unfavorable for altcoins.

🔥According to Cointelegraph, the legal and advisory fees for the FTX bankruptcy case have accumulated to $950 million, making it one of the most expensive bankruptcy cases in U.S. history, second only to the Lehman Brothers case.

🔥 Timothy Massad, former chairman of the U.S. Commodity Futures Trading Commission (CFTC), called on Congress to prioritize a regulatory framework for stablecoins and postpone discussions on legislation on crypto market structures for several years, CoinDesk reported. In his view, the current proposed market structure could exacerbate regulatory confusion rather than provide clear guidance.

Regulatory & Macro Policy

🔥According to Cointelegraph, the Montana House of Representatives in the United States rejected the "Strategic Bitcoin Reserve" bill with 41 votes in favor and 59 votes against, with many legislators concerned that the investment committee would use taxpayers' money for excessive speculation.

🔥The U.S. Securities and Exchange Commission (SEC) has concluded its investigation into Gemini Trust Company, LLC and decided not to take enforcement action, according to SEC filings.

🔥 According to Cointelegraph, the US state of Georgia proposed a second Bitcoin Reserve Act (SB228) allow the state to invest in Bitcoin without any investment restrictions.

🔥 According to Watcher.Guru, the U.S. Securities and Exchange Commission (SEC) has officially confirmed receipt of an application submitted by Grayscale to allow its Ethereum spot ETF for staking services.

🔥 South Korea's Financial Intelligence Unit (FIU) announced on February 25 that it would impose regulatory measures on Upbit, South Korea's largest cryptocurrency exchange, according to Yonhap News Agency. According to the regulations, Upbit will be restricted from cryptocurrency deposits and withdrawals for newly registered users for the next 3 months.

🔥 According to Decrypt, U.S. Senator Dick Durbin of Illinois introduced the Cryptocurrency ATM Anti-Fraud Act, which aims to curb the growing problem of crypto ATM fraud. The bill proposes to cap $2,000 per day and $10,000 in 14 days for new users, and requires operators to contact users directly if they trade more than $500 to prevent fraud.

🔥The U.S. Securities and Exchange Commission (SEC) has concluded its investigation into Gemini Trust Company, LLC and decided not to take enforcement action, according to SEC filings.

🔥 According to CoinDesk, the U.S. Senate Banking Committee held its first digital asset subcommittee hearing, focusing on stablecoin legislation and Congress's role in future crypto regulation.

🔥According to CoinDesk, the U.S. House Ways and Means Committee passed a resolution by a vote of 26-16 to initiate the repeal of the new tax regulations by the Internal Revenue Service (IRS) on decentralized finance (DeFi) platforms.

🔥 According to Solid Intel, Oklahoma's Strategic Bitcoin Reserve Act (HB 1203) has passed the state House of Representatives government oversight committee for consideration and will be submitted to the full parliament for a vote. The bill allows up to 10% of public funds to be invested in Bitcoin or digital assets with a market capitalization of more than $500 billion.

Crypto Market Highlights

⭐️In the past week, the overall trend of the cryptocurrency market has experienced a significant downturn. Currently, the mainstream currencies are stabilizing, but there is still a possibility of further decline. The overall market value has fluctuated significantly in the past week, mainly dominated by continuous declines. The likelihood of a large-scale increase in the market in the short term is low, and there is still a trend of further decline in the future.

⭐️ This week, the crypto market MKR rose first among the mainstream currencies, but in fact, the increase in the currency is also quite limited, in this week's overall market volatility lower, the currency as the first batch of currencies to pick up, a weekly increase of about 16%, the current price is maintained around $1701, currently showing a more obvious continuous fluctuation trend, is expected to remain in a small range.

Bitcoin & Ethereum Weekly Performance

Bitcoin (BTC)

! ( data source: TradingView)

During this week, the price of BTC first showed a stable trend after the opening, and then began to experience multiple rounds of decline during the mid-week period, with a very obvious downward trend, falling below $90,000. Currently, the price of BTC is in a small fluctuation trend, maintaining around $84,000. The price of BTC has shown a continuous bottoming trend for most of the time this week, and there is currently a possibility of further decline and trend, depending on the overall market trend changes.

Ethereum (ETH)

! ( data source: TradingView)

The price change of ETH during the week is relatively drastic compared with BTC, but the overall trend is converging, and the continuous decline for a week is obvious. At present, the price of ETH is basically stable below $2,300 and fluctuates slightly, maintaining a small range and continuing to rise and fall. ETH's one-week high is near $2,850, and it is expected that there will continue to be a new round of ups and downs over the weekend, with a high probability of small price rises and falls.

Web3 Project Trends

This week, the total market value of seven types of projects has mostly experienced a significant decline. Most of the track trends have shown a significant decrease compared to the same period last week, with a mainly downward trend. The overall market this week is mainly influenced by the news, and there is still a possibility of further decline in the short term.

| Project Category | Weekly Change | Top Three Tokens by Weekly Growth | Overview | | ------------ | ------------ | ------------ | ------------ | | Layer 1 | -13.1% | CAU,MON,SAITO | The total market value of Layer 1 track has experienced a significant drop this week, with the top currencies showing a relatively even distribution of gains and no significant increase in currencies. | | Layer 2 |-10.7% |CLV,HACD,CARMIN|The Layer 2 track has fallen significantly this week, but the range of top rising currencies is acceptable, and the overall increase is unevenly distributed | DeFi | -11.6% | PRIME,DEPAY,PIKA | The total market value of the DeFi track has fallen significantly this week, and the overall situation is in a state of rapid decline, and the range of top rising coins is considerable | NFT | -7.1% | PCNT,TLN,XED |The total value of the NFT market has experienced a certain decline this week, with the top gainers mainly being non-mainstream coins, with gains maintained around 50%. | MEME | -16.3% | ANTI,PUPS,TARDI| The MEME coin track has experienced a significant decline this week, but the magnitude of the rise in the top-performing currencies is still considerable, showing a clear downward trend in the overall track. | | Liquid Staking | -15.9% | HBR,HINJ,ASCAKE | The track has fallen sharply this week, and the head currency has basically no growth, remaining in a small range, which is greatly affected by the trend of mainstream currencies | AI | 1.0% | SUGARB,A1C,MATES | The AI track has warmed slightly this week, with moderate increases in the leading currencies. Overall, the track has mainly seen a warming trend recently, but this week, the extent of the warming has further decreased due to the overall market conditions.

Author: Charles T., Gate.io Researcher *This article represents the views of the author only and does not constitute any trading advice. Investment is risky, and decisions need to be made carefully. *The content of this article is original, the copyright is owned by Gate.io, if you need to reprint, please indicate the author and source, otherwise you will be held legally responsible.