Gate Ventures: Market sentiment plunges into extreme panic, accelerating institutionalization in the derivatives and prediction sectors.

According to Gate Ventures' latest weekly crypto report, the market experienced overall downward pressure over the past week, with BTC and ETH falling by 6.8% and 5.8% respectively. The Fear & Greed Index dropped to 8, entering the "extreme fear" zone. Despite the weak price performance, liquidity remained relatively resilient, with BTC and ETH spot ETFs recording net inflows of approximately $767 million and $161 million respectively, indicating continued institutional investment. Overall, the total market capitalization of the crypto market declined by approximately 5.5%, indicating a phase of sentiment recovery and structural differentiation. On the macro level, the Fed maintained its interest rate policy, and the Middle East situation pushed up energy prices, increasing market concerns about stagflation risks. Meanwhile, the integration of traditional finance and the crypto market continues to deepen, with Morgan Stanley and Grayscale advancing their Bitcoin and Hyperliquid ETF initiatives respectively. Exchanges have also relaxed restrictions on related derivatives trading, further broadening the avenues for institutional participation. Furthermore, the institutionalization trend in the prediction market is accelerating, with Kalshi completing a funding round of over $1 billion, reaching a valuation of $22 billion. In terms of investment and financing, 11 deals were completed last week, with a total disclosed financing amount of US$1.18 billion. Infrastructure accounted for 64% of these deals, making it the primary destination for funds. Overall, despite increased market volatility, funds continue to flow into core infrastructure and emerging sectors, maintaining robust long-term construction momentum in the industry.