Gate Research: Bitcoin Leverage Flush Eases Market Risk｜Gate Perp DEX Surpasses $1 Billion in Trading Volume

Crypto Market Overview

• BTC (-0.88% | Current Price: 108,386 USDT): After a short-term rally, BTC faced profit-taking and stabilized near the $108,000 level. The current price shows a slight rebound but remains under pressure below the MA30, with short-term moving averages turning downward and forming a death cross, indicating strong selling pressure overhead. The MACD lines are converging from the lows, and the shrinking green histogram suggests waning downside momentum, though a clear bullish crossover has yet to form. A break above $110,000 with sustained strength could extend the rebound toward $112,500, while a drop below $108,000 may lead to a retest of the $106,000–$105,000 range.
• ETH (-1.63% | Current Price: 3,871 USDT): ETH pulled back after encountering resistance near $4,100 and is now consolidating around $3,870. Short-term moving averages are trending downward and remain below the MA30 (around $3,930), indicating a weak structure. The MACD lines are still below the zero line, and though the green histogram is narrowing, momentum has yet to reverse. If ETH regains $3,930 and breaks above $3,980, a rebound extension is possible; otherwise, a drop below $3,820 could push prices toward the $3,750 support zone.
• Altcoins: The overall crypto market declined, with the Fear & Greed Index falling to 25, signaling growing investor caution and increased sideline sentiment. Short-term volatility is likely to persist, while overall market activity has slightly cooled.
• Macro: On October 21, the S&P 500 Index rose 0.0033% to 6,735.35 points; the Dow Jones Index gained 0.47% to 46,924.74 points; and the Nasdaq Index slipped 0.16% to 22,953.67 points. As of 02:15 AM (UTC) on October 22, spot gold was trading at $4,096 per ounce, down 0.72% over the past 24 hours.

Trending Tokens

BLUAI Bluwhale AI (+295.40% | Circulating Market Cap: $24.17M)

According to Gate market data, the BLUAI token is currently priced at $0.01977, up about 295.40% over the past 24 hours. Bluwhale AI is an artificial intelligence protocol deployed on the Sui network, positioned as the first AI infrastructure project built on Sui, aiming to create an open ecosystem that combines decentralized computing and intelligent agents.

BLUAI’s recent surge is largely driven by listing news and market enthusiasm. On October 21, the project announced its listing on Gate and several major exchanges, triggering a wave of concentrated inflows. Meanwhile, its CoinMarketCap verification was completed, further enhancing market confidence. Supported by the “AI × Sui” narrative and strong community engagement, BLUAI has rapidly become one of the most closely watched emerging tokens in the market.

COAI ChainOpera AI (+39.45% | Circulating Market Cap: $1.638B)

According to Gate data, the COAI token is currently trading at $8.171, up 39.45% over the past 24 hours. ChainOpera AI is an AI Agent network centered on collaborative intelligence, aiming to build an open artificial intelligence economy co-created and co-governed by the community. By integrating autonomous agents, models, and GPU platforms, the project constructs a decentralized “AI Actor Network” that enables agents not only to reason and make decisions but also to engage in autonomous transactions and collaboration through token economics.

COAI’s recent rally is primarily attributed to its official exchange listings and improving market sentiment. In mid-October, the project was listed on Gate and other major exchanges, attracting significant capital and attention. As one of the few leading projects combining AI Agent and decentralized compute power narratives, ChainOpera has been regarded as a new benchmark in the AI sector.

LIGHT Bitlight Labs (+26.72% | Circulating Market Cap: $72.89M)

Gate market data shows that the LIGHT token is currently priced at $1.7213, up 26.72% in the last 24 hours. Bitlight Labs is a technology-focused project within the Bitcoin ecosystem, dedicated to integrating Layer 1 and Layer 2 architectures to enable non-custodial operations and efficient payments on the Bitcoin network. Its core product, BitLight, combines RGB protocol’s client-side validation with the Lightning Network’s payment capabilities, creating a secure and scalable comprehensive solution.

LIGHT’s recent rally was driven by the release of its technical whitepaper and a renewed wave of Bitcoin ecosystem enthusiasm. On October 21, Bitlight Labs officially published its whitepaper, detailing its innovations in Bitcoin’s non-custodial framework, attracting attention from both developers and investors. The project is widely viewed as a potential key infrastructure linking the RGB and Lightning Network ecosystems, opening new opportunities for Bitcoin-based DeFi and asset-layer expansion.

Alpha Insights

Bitcoin Leverage Flush Eases Market Risk, Market Structure Stabilizes

According to Coinglass data, Bitcoin’s open interest has dropped by roughly 30% over the past week, indicating a significant round of deleveraging. High-leverage positions were forced to close, cooling down overheated long leverage. Funding rates have also normalized near neutral levels, suggesting renewed balance between bulls and bears. Although this deleveraging caused short-term volatility, it helps reduce systemic liquidation risks and builds a healthier foundation for the next market phase.

Structurally, post-flush positions have become more concentrated in spot and low-leverage trades, lowering the risk of extreme volatility in derivatives markets. Traders have shifted toward more conservative strategies, favoring observation and selective dip-buying. Overall, with excess leverage cleared and market positioning normalized, Bitcoin’s medium-term stability and trend continuity appear more sustainable.

Tether Surpasses 500 Million Users, Highlighting Social Impact of Stablecoins

Tether announced that USDT’s global user base has exceeded 500 million, underscoring its expanding influence within the global financial system. In a post on X, Tether emphasized that this milestone represents “500 million real people” and celebrated the achievement by releasing a short documentary filmed in Kenya, showcasing how USDT brings freedom, stability, and hope to communities facing inflation and limited access to financial infrastructure. The film highlights real use cases of stablecoins in savings, payments, and cross-border transactions, reinforcing their role in promoting financial inclusion.

From a narrative perspective, this move serves as both a milestone celebration and a strategic brand statement. The documentary strengthens USDT’s image as a “decentralized stabilizing force” while addressing long-standing transparency and regulatory concerns. With USDT’s market cap surpassing $180 billion across multiple blockchains, Tether is expanding its focus from exchange ecosystems to real-world financial integration, using authentic stories to reinforce its leadership in the global stablecoin market.

Gate Perp DEX Surpasses $1 Billion in Trading Volume, Accelerating DeFi Derivatives Growth

On-chain data shows that Gate Perp DEX, the decentralized perpetual futures platform by Gate, has exceeded $1 billion in cumulative trading volume — a major milestone reflecting strong user growth and market activity. Since its launch, the platform has attracted professional and high-frequency traders through its smooth trading experience and deep liquidity, marking a key breakthrough in decentralized derivatives. This achievement highlights growing user adoption of decentralized trading and validates Gate’s strategic expansion into the derivatives sector.

On the technical side, Gate Perp DEX is built on Gate Layer, a high-performance Layer 2 network, and features a proprietary matching engine capable of high concurrency and low latency. Combined with on-chain transparent settlement and enhanced contract security, the platform minimizes slippage and liquidation risks, offering a decentralized trading experience comparable to centralized exchanges. As trading volume and user participation continue to grow, Gate Perp DEX is emerging as a major contender in the derivatives arena, signaling Gate’s broader acceleration in DeFi infrastructure and innovation.


References

• 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

Gate Research is a comprehensive blockchain and cryptocurrency research platform that provides deep content for readers, including technical analysis, market insights, industry research, trend forecasting, and macroeconomic policy analysis.

Disclaimer
Investing in cryptocurrency markets involves high risk. Users are advised to conduct their own research and fully understand the nature of the assets and products before making any investment decisions. Gate is not responsible for any losses or damages arising from such decisions.