Gate Research Institute: Bitcoin leverage liquidation alleviates market risk | Gate Perp DEX volume surpasses 1 billion USD

Crypto Market Overview

• BTC (-0.88% | Current Price 108,386 USDT): After a short-term surge, BTC experienced profit-taking and stabilized around 108,000 USD. The current price has slightly rebounded but remains under pressure below the MA30, with the short-term moving averages bending down and forming a death cross, indicating heavy selling pressure above. Although the MACD dual lines are converging from a low point, the green bars are shortening, and momentum is slowing down, a clear golden cross has not yet formed. If it can break through 110,000 USD and stabilize, a further rebound to 112,500 USD is expected; if it falls below the 108,000 USD support, it may retest the 106,000–105,000 USD range.
• ETH (-1.63%丨Current Price 3,871 USDT): After being blocked near the short-term high of $4,100, ETH has pulled back and is currently consolidating in the $3,870 range. The short-term moving averages are declining and are below the MA30, indicating a weak structure. The MACD dual lines are still below the zero axis; although the green bars are gradually converging, the momentum has not yet reversed. If ETH can regain above $3,930 and break through $3,980, there will be a chance to continue the rebound; if it falls below $3,820 again, it may test the support level at $3,750.
• Altcoins: The crypto market has fallen overall, with the Fear and Greed Index dropping to 25, indicating that investor sentiment is becoming cautious, with an increase in funds being held back. Short-term volatility may continue, and market activity has slightly cooled.
• Macro: On October 21, the S&P 500 index rose by 0.0033%, reporting at 6,735.35 points; the Dow Jones index rose by 0.47%, reporting at 46,924.74 points; the Nasdaq index fell by 0.16%, reporting at 22,953.67 points. As of October 22, 10:15 AM (UTC+8), the spot gold price is temporarily reported at 4,096 dollars per ounce, with a decline of 0.72% in 24H.

Trending Tokens on Juejin

BLUAI Bluwhale AI (+295.40%, circulation market value 24.167 million USD)

According to Gate's market data, the current price of the BLUAI token is $0.01977, up approximately 295.40% in the last 24 hours. Bluwhale AI is an artificial intelligence protocol deployed on the Sui network, positioned as the first AI infrastructure project based on Sui, aiming to build an open ecosystem that combines decentralized computing and intelligent agents.

BLUAI has recently experienced a strong surge, primarily driven by listing news and market enthusiasm. On October 21, the project announced its launch on Gate and several other leading exchanges, triggering a concentrated influx of funds. Meanwhile, the official completion of coin verification on CoinMarketCap further enhances market confidence. Coupled with the support of the “AI × Sui” narrative and a highly active trading atmosphere within the community, BLUAI has become one of the most attention-grabbing emerging tokens recently.

COAI ChainOpera AI (+39.45%, circulating market cap 1.638 billion USD)

According to Gate.io market data, the current quote for the COAI token is $8.171, with a 39.45% increase in the last 24 hours. ChainOpera AI is an AI Agent network centered around collaborative intelligence, aiming to create an open artificial intelligence economic system co-created and co-governed by the community. The project builds a decentralized “AI Actors Network” by integrating self-learning agents, models, and GPU platforms, enabling agents to not only perform reasoning and decision-making but also to achieve autonomous trading and collaboration through a token economy.

COAI has shown significant upward momentum recently, mainly driven by the official launch of the token and market sentiment. In mid-October, the project announced its listing on Gate and several other mainstream exchanges, quickly attracting funds and attention. As one of the few leading projects combining “AI Agent + decentralized computing power” narrative, ChainOpera is regarded by the market as a new benchmark in the AI sector.

LIGHT Bitlight Labs (+26.72%, circulating market cap 72.8868 million USD)

According to Gate market data, the LIGHT token is currently priced at 1.7213 USD, having increased by approximately 26.72% within 24 hours. Bitlight Labs is a technology-focused project that concentrates on the Bitcoin ecosystem, aiming to integrate Layer1 and Layer2 architectures to achieve non-custodial operations and efficient payments on the Bitcoin network. Its core product BitLight combines the client asset verification mechanism of the RGB protocol with the payment capabilities of the Lightning Network, creating a comprehensive solution that offers both security and scalability.

The recent rise of LIGHT has been jointly driven by the release of the white paper and the boost from market narratives. Bitlight Labs officially released its technical white paper on October 21, detailing its innovative solutions on Bitcoin's non-custodial architecture, which has attracted widespread attention from developers and investors. The market generally believes that this project is expected to become a key infrastructure connecting the RGB and Lightning Network ecosystems, opening new directions for Bitcoin DeFi and asset layer expansion.

Alpha Interpretation

Bitcoin leverage liquidation alleviates market risks, and the capital structure tends to stabilize.

According to Coinglass data, Bitcoin's Open Interest has plummeted by about 30% in the past week, indicating that the market has undergone a significant deleveraging. High-leverage funds were forced to close positions, causing the overheated long leverage in the market to cool rapidly. The funding rate has also fallen back to near neutral levels, suggesting a rebalancing of long and short forces. Although this deleveraging process brings volatility in the short term, it helps reduce the systemic risk of cascading liquidations, laying a healthier structural foundation for the next phase of the market.

From the market structure perspective, after the leverage liquidation, positions are more concentrated in spot and low-leverage funds, and the extreme volatility risk in the derivatives market has significantly decreased. Traders' sentiment is gradually shifting from high-risk preference to a more cautious approach, with funds primarily focused on waiting and buying on dips in the short term. Overall, as excessive leverage is cleared and the funding situation becomes neutral, the Bitcoin market, after experiencing a “mine clearance period,” shows a convergence in short-term volatility space, while the stability and continuity of the medium-term trend are actually more supported.

Tether users break 500 million, focusing on the social impact of encryption finance.

Tether announced that the number of global users of USDT has officially surpassed 500 million, marking its growing influence in the global financial system. The official post on the X platform stated that this number represents “500 million real people” and took this opportunity to launch a short documentary from Kenya, illustrating how USDT brings freedom, stability, and hope to people in regions with high inflation and weak financial infrastructure. The film showcases how local residents rely on stablecoins for savings, payments, and cross-border transactions, highlighting the inclusive financial value of cryptocurrencies in the real world.

From a narrative perspective, Tether's move is not only a celebration of growth milestones but also a combination of brand image and public issues. The documentary reinforces the positioning of USDT as a “decentralized stable power” and aims to respond to long-standing external doubts about its transparency and regulation. With the market capitalization of USDT surpassing $180 billion and covering multiple blockchains, Tether is shifting its focus from the exchange ecosystem to real-life scenarios, using “real stories” to strengthen its global influence and further consolidate its dominant position in the stablecoin market.

Gate Perp DEX trading volume surpasses 1 billion USD, decentralized derivatives ecosystem accelerates expansion.

According to on-chain data, Gate's decentralized perpetual contract platform Gate Perp DEX has surpassed a cumulative trading volume of $1 billion, demonstrating a strong growth momentum in user scale and market activity. Since its launch, the platform has attracted a large number of high-frequency and professional traders with its smooth trading experience and deep liquidity, driving Gate to achieve significant breakthroughs in the decentralized derivatives field. This milestone reflects the increasing acceptance of users towards decentralized trading experiences and shows that Gate's strategy in the derivatives market is gradually yielding results.

On a technical level, the Gate Perp DEX architecture relies on the Gate Layer high-performance Layer 2 network and is equipped with a self-developed matching engine to achieve high concurrency and low latency processing. Combined with on-chain transparent settlement and contract security mechanisms, the platform effectively reduces slippage and liquidation risks, providing users with a decentralized trading environment that offers a centralized experience. With the continuous growth of trading volume and user numbers, Gate Perp DEX is becoming an important competitor in the derivatives space, marking a comprehensive acceleration in Gate's DeFi infrastructure and derivatives innovation. <br> Reference:

• Gate, https://www.gate.com/trade/BTC_USDT
• Farside Investors, https://farside.co.uk/btc/
• Gate, https://www.gate.com/trade/ETH_USDT
• Farside Investors, https://farside.co.uk/eth/
• Gate, https://www.gate.com/crypto-market-data
• Investing, https://investing.com/indices/usa-indices
• Investing, https://investing.com/currencies/xau-usd
• X, https://x.com/glassnode/status/1980569106509082727
• X, https://x.com/Tether_to/status/1980619567157191113
• Gate, https://web3.gate.com/perps

<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 forecasts, and macroeconomic policy analysis.

Disclaimer Investment in the crypto market involves high risks. 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 is not responsible for any losses or damages resulting from such investment decisions.