Gate Research Institute: Increased Fluctuation in the crypto market under macro influences | Mastercard acquisition of encryption infrastructure company Zerohash

Encryption Asset Overview

BTC (-1.85% | Current Price 110,572 USDT)

In the past 24 hours, Bitcoin has been fluctuating narrowly around the MA5 and MA10. Affected by the disappointment in interest rate cut expectations, the price once dipped to $109,216, and then quickly recovered above $110,000. Market volatility has led to a total liquidation amount of $532 million across the network in the past 12 hours, with long positions liquidating up to $426 million, and Bitcoin's individual liquidation being about $224 million. Overall, Bitcoin is still in a neutral to bullish consolidation phase, with the price running between the 100-day and 200-day moving averages, and its consolidation phase is expected to be prolonged. The key resistance level above in the short term remains at $116,000; if broken, the rebound trend is likely to continue; while the $109,000 area below is an important support zone for the bullish structure to hold.

ETH (-1.96% | Current price 3,923 USDT)

In the past 24 hours, Ethereum has fluctuated and weakened in the range of $3,839—$4,037. The 4-hour chart shows that ETH has fallen below the MA5, MA10, and MA30 moving averages, with the price located at the lower band of the Bollinger Bands, indicating clear short-term pressure. From a daily perspective, the golden cross range of the moving averages is gradually narrowing, and ETH continues to hover below the 100-day moving average, which constitutes the current main resistance. If the price can break through and stabilize above $4,000, there is hope for a retest of the $4,200 supply zone; conversely, if it fails to break the upward trend line, it may indicate further weakness in the short term. Looking below, the $3,500 area remains a key support level.

GT (-1.49% | Current Price 14.45 USDT)

GT has recently experienced increased volatility and expanded declines due to unclear directions of major cryptocurrencies and heightened macroeconomic uncertainties. Since October 13, trading volume has continued to shrink. From the daily chart perspective, the price has fallen below the MA5, 10, and 30-day moving averages, and has breached the lower Bollinger Band, indicating a weak long-term trend. Currently, GT has broken below the critical market resistance level around 15 dollars, and there are no clear signs of bottoming out yet. Future attention should focus on whether trading volume can rebound and the recovery of short-term moving averages to confirm potential rebound momentum.

Daily Price Fluctuation Tokens

In the past 24 hours, the overall cryptocurrency market has continued to decline under the influence of macro news, with mainstream coins generally falling. BTC fell by 1.70%, ETH dropped by 1.58%, SOL remained flat, and XRP decreased by 1.90%. BNB became one of the few mainstream coins that rose, with an increase of about 1.42%, showing relatively strong performance. Additionally, with most assets entering a short-term adjustment phase, RZTO, SAPIEN, and LUMIA tokens performed well, and the reasons for the rise of each token will be analyzed one by one below.

RZTO RZTO (+231.55%, circulating market value 19.338 million USD)

According to Gate market data, the RZTO token is currently priced at $0.004340, with a 24-hour increase of 231.55%, continuing a strong weekly increase of 386%, outperforming the overall declining cryptocurrency market which is down 0.9%. RZTO is an innovative project focused on the integration of AI and Web3 technology, dedicated to enhancing blockchain efficiency and user experience through smart trading, ZK technology, and decentralized applications. The core goal of the project is to build the next-generation DeFi infrastructure that combines privacy, security, and intelligence.

The core driving factors of the upward trend mainly come from the listing of tokens on exchanges and the popularity on social media. Firstly, RZTO was listed on a centralized exchange on October 18 and opened for withdrawals on October 19, quickly releasing new liquidity and buying momentum, with a single-day trading volume soaring by 246% to 1.66 million USD, indicating a rapid inflow of market funds. Secondly, RZTO.IO released a vague tweet on October 26 that sparked heated discussions in the community and market speculation, receiving more than 1,000 likes, further amplifying retail sentiment and short-term speculation expectations. Overall, this round of increase is driven by both the “listing effect” and “social momentum,” but the fundamental support is limited.

SAPIEN Sapien (+19.84%, circulating market value 48.9325 million USD)

According to Gate market data, the SAPIEN token is currently priced at $0.1966, with a 24-hour increase of 19.84% and a market capitalization growth of $6.1 million compared to yesterday. Sapien is a decentralized data Foundry aimed at converting collective human knowledge into enterprise-level AI training data. Sapien focuses on high-quality, vertical domain AI training data, including 3D/4D data annotation, expert-led data collection, and customized dataset services for industry applications. Its open market also offers a selection of domain-specific datasets to support deep learning and innovation for AI models.

Recently, Sapien announced the completion of a $10.5 million seed round financing on October 30, 2024, led by the well-known institution Variant. This round of financing will mainly be used to expand the global data collection network and optimize platform infrastructure, further strengthening its core competitiveness in the decentralized data and AI training ecosystem. With a decentralized model and a large-scale human participation mechanism, Sapien is gradually becoming a key infrastructure connecting AI models with real-world data.

LUMIA Lumia (+22.97%, circulating market cap 12.0942 million USD)

According to Gate.io market data, the LUMIA token is currently priced at $0.1622, with a 24-hour increase of 22.97%. Lumia is a Web3 protocol focused on building cross-chain liquidity and asset tokenization infrastructure, dedicated to breaking down the barriers to multi-chain asset interaction, providing users and institutions with an efficient and secure cross-chain trading experience. Through technological innovation and ecological collaboration, the project is gradually becoming an important infrastructure participant in the DeFi and RWA fields.

Recently, the price of Lumia tokens has risen significantly, mainly driven by three positive factors. First, on October 11, Lumia announced a strategic partnership with blockchain infrastructure giant Alchemy to provide institutional-grade infrastructure support for its network, enhancing system stability and security. Second, on October 18, Lumia and Avail joined forces to promote a solution for the tokenization of physical assets, leveraging the rapidly warming RWA narrative, which has continued to attract market attention. Finally, on October 24, the project launched the Omnichain Liquidity Layer, significantly improving cross-chain asset liquidity and trading experience. This series of actions reflects Lumia's positive progress in technology implementation and ecological expansion, combined with the market's warming sentiment towards liquidity infrastructure, which has collectively driven the continuous rise in its token price.

Hotspot Interpretation

Mastercard plans to invest $2 billion to acquire the encryption infrastructure company Zerohash

Global payment giant Mastercard is in acquisition negotiations with encryption infrastructure company ZeroHash, with the deal amount expected to reach up to $2 billion. This acquisition will further extend Mastercard's encryption business into the stablecoin and tokenization infrastructure sectors.

ZeroHash was established in 2017, focusing on providing infrastructure for stablecoin issuance, fiat-encryption exchange, custody, and staking services, with clients including major banks and trading platforms. The impact of this transaction is extensive. Firstly, it represents the emphasis that traditional payment systems place on stablecoins and blockchain settlement technology, which is expected to accelerate the entry of traditional enterprises into the encryption world. Secondly, for retail and institutional users, if Mastercard can integrate ZeroHash's technology, it is expected to promote more convenient, transparent, and compliant fiat-encryption exchanges. Finally, from the perspective of the industry landscape, this move may trigger more payment giants and financial institutions to accelerate their layout of encryption infrastructure, promoting the entire ecosystem's integration into mainstream finance.

Bitwise Solana Staking ETF trading volume exceeds $72 million, popularity surpasses market expectations.

Bitwise launched its Solana staking ETF (ticker BSOL), which achieved a trading volume of $56 million on its first day, followed by a new high of $72.4 million the next day, making it the strongest performer among nearly 850 new ETFs this year. Meanwhile, the Litecoin ETF (LTCC) and HBAR ETF (HBR) launched by Canary had trading volumes of approximately $8 million and $1 million respectively the following day, while Grayscale's Solana staking ETF (GSOL) traded around $4 million.

The BSOL product is the first exchange-traded tool that offers a 100% direct holding of Solana and supports staking rewards. High trading volume reflects investors' strong interest in Solana and its related ETF products, while also signaling progress towards institutionalization of the Solana ecosystem. Currently, there are still over 150 ETP applications tracking 35 types of encryption assets awaiting SEC approval, with a majority being related to Solana and Bitcoin. Overall, the listing of the Solana ETF marks the recognition of this encryption asset by Wall Street, as institutional investors quickly participated even during government shutdowns, demonstrating strong market demand. The issuance of the ETF, along with the staking model of BSOL and Grayscale's transformation, has brought the legitimacy and accessibility required for mainstream applications to Solana, making it no longer just regarded as a meme coin, but a true financial infrastructure.

The pace of interest rate cuts may slow, and traders have lowered their bets on a rate cut in December.

After the highly anticipated interest rate meeting, the market did not welcome a definite expectation for a rate cut in December. The meeting indicated that if no new information is obtained and the economic conditions appear unchanged, there would be reason to slow down the pace of rate cuts. Additionally, compared to the last two policy meetings where rate cuts occurred, some officials hoped to adopt a wait-and-see approach. Now, an increasing number of officials believe that the next rate cut should at least wait for one cycle.

As a result, Bitcoin briefly fell to $109,949 after the meeting, with a 24-hour decline of 4.17%. Meanwhile, the meeting also led to a total liquidation of $532 million across the network in 12 hours, with long positions accounting for $426 million. Inflation Insights analyst Omair Sharif believes that the government shutdown and the lack of relevant official economic data may hinder plans for a third consecutive rate cut in December. If the meeting on December 10 does not reflect official data on economic activity for October and November, officials may find it difficult to reach a consensus on another rate cut, especially considering the divisions within the FOMC indicated by the September dot plot. Notably, traders have lowered their bets on a rate cut in December; according to CME statistics, the probability of a 25 bp rate cut is currently only 67.8%, while a day earlier traders believed there was a 90.5% chance of a 50 bp cut.

<br> Reference Materials:

• Gate, https://www.gate.com/trade/BTC_USDT
• Farside Investors, https://farside.co.uk/btc/
• Gate, https://www.gate.com/trade/ETH_USDT
• Gate, https://www.gate.com/crypto-market-data
• Coingecoko, https://www.coingecko.com/en/cryptocurrency-heatmap
• The Block, https://www.theblock.co/post/376839/huge-number-bitwise-solana-etf-crosses-70-million-volume-second-day
• The Block, https://www.theblock.co/post/376840/mastercard-acquire-crypto-infrastructure-startup-zerohash-deal-worth-2-billion-fortune
• CME, https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html

<br> Gate Research Institute is a comprehensive blockchain and encryption research platform that provides readers with in-depth content, including technical analysis, hot insights, market reviews, industry research, trend predictions, and macroeconomic policy analysis.

Disclaimer Investing in the cryptocurrency market involves high risks, and users are advised to conduct independent research and fully understand the nature of the assets and products being purchased before making any investment decisions. Gate shall not be liable for any losses or damages arising from such investment decisions.