1. Headline

1. ByteDance and Mind Network have reached a strategic cooperation to jointly promote the construction of trusted AI infrastructure.

BytePlus, the cloud computing platform under ByteDance, has announced a strategic partnership with Mind Network to collaborate deeply on cryptographic AI reasoning and a trusted Agent ecosystem, promoting the implementation of trusted AI. BytePlus will open its large language model DeepSeek to Mind Network through standardized APIs, while Mind Network will use fully homomorphic encryption to protect the entire reasoning process, ensuring security throughout the entire process from input to model output. All computation and verification processes will be completed through the Function Compute infrastructure provided by BytePlus, balancing high performance and security.

This collaboration helps to address the privacy and security challenges faced by current AI systems. Traditional AI systems are at risk of data breaches and malicious manipulation of models, while Mind Network's encrypted AI inference technology ensures the security of data and models throughout their lifecycle. At the same time, the addition of the DeepSeek model from ByteDance will bring powerful semantic understanding capabilities to Mind Network.

Industry insiders believe that this collaboration marks an important step for both companies in building trustworthy AI infrastructure. As AI continues to penetrate various industries, the importance of trustworthy AI infrastructure is increasingly highlighted. The partnership between Mind Network and BytePlus is expected to drive breakthroughs in privacy protection, security, and interpretability of AI systems, paving the way for AI applications in critical areas.

2. The Federal Reserve's June meeting minutes released dovish signals, possibly paving the way for interest rate cuts later this year.

The minutes of the Federal Reserve's June meeting were released at 2 a.m. Beijing time on July 9. The minutes show that there are internal disagreements within the Federal Reserve regarding whether to cut interest rates this year, but overall, they convey a dovish signal, suggesting that the threshold for a rate cut is decreasing.

The meeting minutes revealed that some officials believe the Federal Reserve may need to start cutting interest rates later this year if the economic slowdown exceeds expectations. Meanwhile, there are also officials who hold the opposite view, arguing that inflationary pressures persist and the Federal Reserve should remain patient.

Citi analysts stated that the minutes read more dovishly compared to Powell's June press conference. At that time, Powell leaned towards using neutral language, emphasizing the Federal Reserve's dual mandate. However, the minutes better reflect the signal that the threshold for rate cuts is decreasing.

Analysts pointed out that the dovish tone of the Federal Reserve's June meeting minutes may pave the way for interest rate cuts later this year. Inflation data and economic growth will be key factors in the Fed's decision to take action. If inflation continues to decline and the economy further slows, the Fed may initiate a rate cut cycle within the year to support economic growth.

3. The Hong Kong "Stablecoin Regulation" will take effect on August 1, and global companies are actively applying for licenses.

The Hong Kong "Stablecoin Regulation" will officially take effect on August 1, 2025, and is regarded as one of the strictest regulatory frameworks in the world. The regulation requires issuing institutions to apply for a scarce stablecoin license, with only a single-digit number of issuers approved in the first batch.

Several multinational companies, including JD Coin Chain and Standard Chartered Bank, have applied for the license. According to the regulations, licensed issuers must fully back the total value of stablecoin issuance with high-quality liquid assets and are subject to on-site inspections by the Hong Kong Monetary Authority. Unlicensed issuers will be prohibited from issuing or circulating stablecoins in Hong Kong.

Industry insiders believe that Hong Kong's strict regulatory stance aims to maintain financial stability and prevent systemic risks. As a bridge between cryptocurrency and the traditional financial system, the healthy development of stablecoins is crucial to Hong Kong's status as an international financial center.

At the same time, global companies are applying for Hong Kong stablecoin licenses, which also reflects the industry's desire for compliant development. Analysts say that stablecoin regulation is beneficial for the long-term healthy development of the industry, but excessive caution may stifle innovation. Striking a balance between risk and innovation will be a major challenge for regulatory agencies.

4. The CEO of Ripple will attend a U.S. Senate hearing to introduce the advantages of XRP technology.

Ripple CEO Brad Garlinghouse will present XRP cryptocurrency to the U.S. Senate Committee on Banking, Housing, and Urban Affairs later on the evening of July 9, local time. His testimony will revolve around the theme of "Building the Digital Asset Market of Tomorrow."

Galenhaus will emphasize the technical advantages and practicality of XRP. XRP is designed as an efficient cross-border payment solution that can significantly reduce the costs and settlement times of traditional financial institutions.

Investors generally expect that if Garlinghouse can successfully articulate XRP's value proposition, it will help alleviate regulatory uncertainty and pave the way for XRP's position in the U.S. financial system. Once regulatory hurdles are removed, XRP is expected to gain broader institutional adoption.

Analysts point out that XRP, as one of the major cryptocurrencies, will have a profound impact on the entire industry. If XRP can achieve breakthroughs at the regulatory level, it will set a precedent for the application of other crypto assets within the traditional financial system. Conversely, if XRP is regarded as a security and subjected to strict regulation, it may hinder the development of the industry.

5. The Bitcoin liquidity model indicates that it is currently in the later stages of the cycle, with new highs imminent.

Cryptocurrency analyst Willy Woo shared an analysis of a Bitcoin liquidity model called "macroeconomic cycle risk." The model shows that Bitcoin is currently in the later stages of the cycle, and the decrease in risk indicators suggests that new liquidity is entering the market, which is often a precursor to breaking new highs.

Woo explained that Bitcoin price cycles are often driven by liquidity cycles. When liquidity is abundant, prices tend to break new highs; whereas when liquidity dries up, prices enter a downward cycle. The current liquidity model shows that Bitcoin is in a critical period of liquidity recovery.

If Bitcoin can effectively break through its historical high of $110,348, analysts believe the next potential target could be around $145,000. However, some analysts are cautious about this, stating that more solid evidence is needed to support expectations of new highs.

In the long term, Bitcoin, as a new type of asset, has significantly different price trends compared to traditional assets. The extreme volatility of Bitcoin's price exposes it to greater uncertainty, requiring investors to remain highly alert. However, from its development history, Bitcoin has repeatedly emerged from bear markets into bull markets, and whether it can replicate such frenzied conditions in the future remains to be seen.

2. Industry News

1. Bitcoin price hovers near a key resistance level, with increasing divergence between bulls and bears.

The price of Bitcoin has remained in a narrow range over the past 24 hours, hovering around $108,000. Technical analysis shows that the current key resistance level for BTC is at $110,348, while the short-term liquidation heatmap indicates significant liquidity support around $107,000. If this support is lost, the price may further test the demand zone at $102,560.

Analysts point out that in the short term, the market is increasingly divided between bulls and bears due to dual uncertainties from trade and monetary policy. On one hand, the Trump administration is about to announce trade policies for multiple countries, heightening market concerns about the global economic outlook. On the other hand, the minutes from the Federal Reserve's June meeting will be released tonight, and investors will closely watch for any signs of interest rate cuts. These uncertainties have intensified investors' cautious sentiment.

Unix analysts suggest that if BTC stabilizes effectively in the support range of 106,000–107,000, one can pay attention to the opportunity for another attempt to break the resistance level. If it falls below 106,000 USD, one should be wary of the risk of testing 102,560 USD. It is advisable to manage positions properly to avoid emotional trading.

2. Ethereum price breaks through the $2600 mark, with positive fundamentals supporting the rise.

Ethereum's price has performed strongly in the past 24 hours, breaking through the $2600 mark, currently reported at $2600.1, an increase of 2.29%. Analysts believe that the rise in Ethereum's price is mainly supported by favorable fundamental factors.

First, some institutions have gradually included ETH in their treasury assets, further strengthening its position as "digital gold" within the asset allocation system. Secondly, the issuance of stablecoins on the Ethereum network remains active, continuously injecting liquidity into the on-chain ecosystem. Meanwhile, the advancement of the U.S. "GENIUS Act" brings medium- to long-term policy benefits for Ethereum in terms of compliance pathways and institutional participation.

Analysts indicate that, combined with the historically strong seasonality of July, Ethereum's current price structure is not only driven by market inertia but also reflects a resonance of fundamental support and market expectations. For bullish holders, the $2,500 level should still be viewed as a key technical support level.

3. The altcoin market has achieved an important breakthrough, reflecting the rebound pattern of cryptocurrencies.

The altcoin market has shown strong performance recently, with significant price increases in several popular altcoins. Analysts believe this reflects the pattern of past cryptocurrency rebounds, indicating that the altcoin market is about to experience a significant upward breakthrough.

Specifically, the prices of altcoins such as Cronos and Floki have surged over 2000%, 1000%, and 500% respectively in the past 24 hours, with trading volumes skyrocketing. Analysts point out that such short-term surges often indicate greater upside potential.

Meanwhile, on-chain data shows that Bitcoin's social media sentiment has reached a three-week high, with bullish comments being 1.51 times more than bearish ones. However, analysts also caution that similar heightened sentiment previously led to price corrections on June 11 and July 7.

Overall, the strong performance of the altcoin market reflects investors' expectations for a rebound in cryptocurrencies. However, investors should also be cautious of potential extreme volatility and manage their risks accordingly.

4. Cryptocurrency exchanges are launching new coins one after another, expanding their product line.

With the increasing activity in the cryptocurrency market, many mainstream exchanges have recently launched new digital assets to expand their product lines.

Coinbase has announced that New York residents can now trade four digital assets: SQD, TIA, XYO, and TAO on its platform. Meanwhile, Gate has launched the BTC Staking Interest Product, providing a low-risk investment channel for BTC holders.

Analysts say that the exchange's launch of new cryptocurrencies not only helps meet the diversified needs of investors but also reflects the exchange's optimistic outlook on market prospects. With the clarification of regulatory policies and the increase in institutional participation, more high-quality digital assets may be included in the exchange's product line in the future.

However, investors should also conduct thorough research and evaluation of the fundamentals and development prospects of the project itself when investing in newly launched digital assets to control investment risks.

5. The cryptocurrency fear and greed index rises, and the market's "greed" sentiment heats up.

According to Alternative data, the cryptocurrency fear and greed index on July 9 was 66, an increase from the previous day's 65, reflecting a rise in market "greed" sentiment.

Analysts point out that the rise in the fear and greed index is mainly due to the recent active performance of the cryptocurrency market. The prices of major cryptocurrencies like Bitcoin and Ethereum have stabilized and rebounded, while some popular altcoins have experienced explosive growth, attracting more funds into the market.

However, some analysts also remind us that overly greedy market sentiment may bring potential risks. Historically, similar euphoric sentiment is often accompanied by sharp price fluctuations, and investors should remain cautious and manage their risk exposure.

Overall, the changes in the Fear and Greed Index reflect a shift in investor sentiment, indicating that the market may enter a new phase. Investors need to combine other technical and fundamental indicators to comprehensively assess future trends.

3. Project News

1. GameSquare's phased investment in Ethereum, with a total of up to $100 million

GameSquare is a Canadian gaming and esports company primarily engaged in game publishing, esports event operations, and gaming-related media business. The company's board has recently approved a phased investment plan in Ethereum, with a total investment amount of up to $100 million, while reserving sufficient operating funds for daily operations.

This decision reflects GameSquare's optimism about the development prospects of the Ethereum ecosystem. As the world's second-largest cryptocurrency, Ethereum has strong community support and an active developer ecosystem. With Ethereum's continuous upgrades, its scalability and security are constantly improving, providing a reliable infrastructure for building decentralized applications. GameSquare's investment will help the company to engage deeply in the Ethereum ecosystem and explore the application prospects of blockchain technology in the fields of gaming and esports.

This initiative could further drive the gaming industry to embrace blockchain technology. Numerous gaming projects, such as Axie Infinity and Decentraland, have emerged within the Ethereum ecosystem, providing players with a brand new gaming experience. GameSquare's investment is expected to further promote the integration of the gaming industry with blockchain technology, bringing more innovative gaming products and services to players.

Industry insiders have welcomed this. Analysts believe that GameSquare's investment will help to promote the development of blockchain games and inject new vitality into the industry. However, some are concerned that gaming companies' excessive speculation on cryptocurrencies may pose risks. Overall, GameSquare's actions reflect traditional enterprises' increasing attention to blockchain technology, which is expected to bring new development opportunities to the industry.

2. The NFT project goblintown issues a new token gob on the Solana network.

goblintown is a highly regarded NFT project that recently launched a new token, gob, on the Solana network. According to data, the market capitalization of the gob token has reached 18.6 million USD, with a trading volume exceeding 8.2 million USD.

The goblintown project was launched in May 2022 and quickly caused a sensation in the NFT field with its unique "goblin" image. The NFT artworks of this project have a strange and unique style, attracting a large number of crypto art enthusiasts. Within just a few months, goblintown became one of the most popular projects in the NFT space.

The issuance of the gob token is an important initiative for goblintown to further expand its ecosystem. According to reports, the gob token aims to address the sustainability and community value issues present in traditional Meme coin models, adopting an innovative token design to achieve a healthier, long-term driven economic ecosystem.

The issuance of gob tokens has attracted significant market attention, reflecting that the NFT craze is still ongoing. Analysts believe that although the NFT market has recently seen a downturn, quality projects still possess considerable development potential. As one of the leading projects, goblintown's token issuance is expected to bring new vitality to the NFT market.

However, some individuals hold a cautious attitude towards the long-term prospects of the gob token. They point out that many Meme coin projects often struggle to maintain long-term value, and whether the gob token can truly address this issue remains to be seen over time. Overall, the issuance of the gob token once again reflects the innovative vitality in the NFT field, and its development prospects are worth ongoing attention.

3. BlackRock's holdings exceed 700,000 BTC, and the demand for crypto ETFs far exceeds miner supply.

According to data from 4E Observation, the world's largest asset management company BlackRock's Bitcoin spot ETF has seen a net inflow of $165 million this week, with holdings exceeding 700,000 BTC, and a current market value of approximately $75.5 billion. Since its establishment at the beginning of 2024, this ETF has achieved a total return of 82.67%, currently accounting for over 55% of all BTC spot ETF holdings in the United States.

As the world's largest asset management company, BlackRock's attitude towards the cryptocurrency market is widely watched. The holdings of the Bitcoin spot ETF reflect that institutional investors' demand for Bitcoin continues to grow. Compared to traditional investment tools, cryptocurrency ETFs provide institutional investors with a more convenient and compliant channel for investing in crypto assets.

The reason why my position size can continue to expand is closely related to the tightening nature of Bitcoin supply. According to Bitcoin's issuance mechanism, its supply is halved every four years, ensuring the long-term scarcity of Bitcoin. At the same time, the demand from institutional investors for crypto assets continues to grow, resulting in a demand for crypto ETFs that far exceeds the supply capacity of miners.

Analysts point out that the continuous expansion of I's holdings reflects institutional investors' recognition of Bitcoin's long-term value. At the same time, the strong demand for crypto ETFs will further promote the mature development of the crypto asset market, providing more investors with compliant and transparent investment channels.

However, some individuals hold a cautious attitude towards the development prospects of cryptocurrency ETFs. They believe that the high volatility of cryptocurrency assets may increase the operational risks of ETFs, and the regulatory stance on cryptocurrency ETFs remains to be seen. In general, the expansion of I's holdings reflects the growing favor of institutional investors towards cryptocurrency assets, and its development deserves ongoing attention.

4. Finex analyst: Traders are cautious about buying BTC, lacking new catalysts.

According to the latest report from Finex analysts, current traders are cautious about buying Bitcoin at the current price level, as the cryptocurrency has consistently failed to effectively break through the historical high of $111,970. The report points out: "Bulls appear hesitant or unable to push prices further up in the absence of new catalysts or clearer macro signals."

As the leader in the cryptocurrency field, Bitcoin's price movements are closely watched by the market. Analysts believe that while the pressure from profit-taking has eased, a lack of buying interest indicates that traders are still waiting for directional confirmation. This cautious sentiment may stem from the current macroeconomic uncertainty and the absence of new positive factors for Bitcoin itself.

In fact, Bitcoin has been fluctuating around $111,000 recently, failing to break through the previous historical high effectively. This has raised doubts among some investors about whether Bitcoin can continue its upward trend. At the same time, factors such as the slowing pace of global economic recovery and tense geopolitical situations have also intensified market uncertainty.

Analysts point out that whether Bitcoin can regain its upward momentum largely depends on changes in the macro environment. If the global economic situation improves and inflationary pressures ease, Bitcoin is expected to attract funds again. In addition, the development of the Bitcoin ecosystem will also be an important factor influencing its price.

Overall, traders' cautious attitude towards Bitcoin reflects the uncertainty of the current market sentiment. Whether Bitcoin can regain its upward momentum will depend on changes in the macro environment and further advancements in ecological development. Market participants need to closely monitor relevant dynamics and prudently seize investment opportunities.

5. Ripple ( XRP ) latest updates: price predictions, ETF approval progress, and latest situation regarding lawsuits.

As the sixth largest cryptocurrency in the world, the development trends of Ripple (XRP) have always attracted attention. Recent news shows that investors expect the U.S. Securities and Exchange Commission (SEC) may soon conclude its lawsuit against Ripple Labs, which could lead to XRP being integrated into the U.S. financial system.

Analysts predict that if the SEC case is resolved clearly, the price of XRP could rise significantly and gain a more strategic position in the market. For a long time, the legal dispute between the SEC and Ripple has been a major obstacle to the development of XRP. Once the case is settled, XRP is expected to regain its momentum for growth.

At the same time, Ripple is actively promoting the construction of the XRP ecosystem. The company will hold its annual Swell conference on November 4th and 5th, bringing together experts and scholars from the global cryptocurrency field to discuss the development direction of XRP and its ecosystem. In addition, there are reports that Ripple is pushing for the approval process of the XRP ETF to further expand investment channels for XRP.

Analysts point out that the development prospects of XRP are promising. The resolution of the SEC case will clear significant obstacles for XRP, while the advancement of ecological development and ETF approvals will inject new vitality into XRP. However, some individuals remain cautious about the regulatory outlook for XRP, believing that there is still uncertainty regarding the stance of regulatory authorities.

Overall, the latest developments of XRP reflect the progress of the project in multiple areas, including legal disputes, ecosystem development, and regulatory compliance. Whether XRP can ultimately revive will depend on the smooth advancement of various efforts. The market needs to continue paying attention and cautiously assess the investment value of XRP.

6. Derlin Securities launches a blockchain digital asset tokenization plan, with a total amount not exceeding 60 million HKD.

Hong Kong traditional financial institution Derlin Securities Group Limited recently announced the launch of a blockchain digital asset tokenization plan, which will be tokenized through the blockchain infrastructure provided by Asseto, and will be distributed in a compliant manner to qualified shareholders, compliant users of Derlin Securities, and certified users of the NeuralFin platform, with a total amount not exceeding 60 million HKD.

The implementation of the project is subject to the final approval of the Hong Kong Securities and Futures Commission. Derlin

4. Economic Dynamics

1. The Federal Reserve's June meeting minutes signal a hawkish-dovish stance.

The U.S. economy maintains a moderate growth trend in the first half of 2025, with a year-on-year GDP growth of 2.1% in the second quarter, slightly lower than the 2.3% in the first quarter. The inflation rate fell to 4.9% in May, but still exceeds the Federal Reserve's target level of 2%. The job market continues to improve, with the unemployment rate dropping to 3.5% in May.

The Federal Reserve decided to hold steady at its monetary policy meeting in June, maintaining the federal funds rate in the range of 5.25% to 5.5%. The minutes of the meeting show a divide between hawks and doves within the Fed. Some officials believe that inflationary pressures remain significant and that further rate hikes are necessary to reinforce a tightening monetary policy stance. However, there are also concerns among officials that excessive tightening could lead to a hard landing for the economy.

Investors are closely watching the hawkish-dovish signals in the meeting minutes, looking for clues about the Federal Reserve's next move. The US stock market fluctuated slightly after the minutes were released, with the S&P 500 index closing down 0.1%. The bond market has seen an increase in expectations for another rate hike by the Federal Reserve this year.

Goldman Sachs chief economist Jan Hatzius stated that the Federal Reserve may raise interest rates once again in September, increasing the rate range to 5.5%-5.75%. He believes that although inflation has cooled somewhat, the ongoing tightening of the labor market could drive up wage growth, thereby intensifying inflationary pressures.

2. China's June export data was strong, and the trade surplus expanded.

China's export data for June showed strong performance, with a year-on-year increase of 16.9%, far exceeding market expectations. This is mainly due to the growth in external demand brought about by the economic recovery in the United States and Europe. Meanwhile, imports in June decreased by 6.8% year-on-year, and the trade surplus expanded to 9.79 billion USD.

Analysts point out that the strong performance of China's exports reflects the ongoing recovery of the manufacturing supply chain and the competitiveness of domestic enterprises in the global market. However, weak imports indicate that domestic demand remains relatively sluggish, constraining the overall growth momentum of the economy.

China's official manufacturing PMI for June is 49.0, slightly below the neutral line of 50.0, reflecting a slight contraction in manufacturing activity. However, the service PMI is 54.2, indicating that the service sector remains in an expansionary phase. Overall, China's economy is gradually emerging from the shadows of the pandemic, but the pace of recovery is still relatively slow.

Citi's Asia economist Liu Yang stated that the Chinese government may need to further increase fiscal spending to boost domestic demand. Meanwhile, the depreciation of the renminbi also helps support exports. He expects China's economy to maintain moderate growth in the second half of the year, with an annual GDP growth rate of around 5%.

3. Eurozone inflation unexpectedly fell, easing interest rate pressure.

The inflation rate in the Eurozone unexpectedly fell to 5.5% in June, lower than the market expectation of 5.7%. This was mainly due to a 15.6% year-on-year decline in energy prices. Excluding volatile items such as energy and food, the core inflation rate remained at 5.4%, unchanged from May.

The decline in the inflation rate has eased the pressure on the European Central Bank (ECB) to further raise interest rates significantly. However, the persistently high core inflation rate remains a concern, reflecting that inflationary pressures have taken root in the Eurozone economy.

The Eurozone economy fell into a slight recession in the first quarter of this year, with hopes of returning to positive growth in the second quarter. However, high inflation and rising interest rates are weakening consumer confidence and corporate investment willingness.

Germany's Commerzbank ( Chief Economist Jörg Krämer stated that despite the decline in inflation, the ECB may still raise interest rates by 25 basis points again in September. He expects that the eurozone economy will slow down in the second half of the year, with GDP growth around 0.5% in 2023.

Goldman Sachs believes that the ECB may pause its interest rate hike cycle later this year. The bank's chief economist for the eurozone, Sven Jari Stehn, stated that the downward trajectory of inflation is already quite clear, coupled with expectations of an economic slowdown, the ECB does not need to make further significant interest rate hikes.

5. Regulation & Policy

) 1. South Korea plans to include cryptocurrency companies in the category of startups to enjoy policy benefits.

The South Korean Small and Medium Enterprise Department announced today plans to amend the current "Special Act on the Promotion of Risk Enterprises" to allow virtual asset trading and brokerage service providers to register as "risk enterprises," thereby qualifying them for relevant government support policies.

In South Korea, "risk enterprises" refer to small and medium-sized enterprises or startups that have been formally certified by the government. They must meet certain standards in terms of investment scale, R&D intensity, or technology assessment in order to obtain certification and enjoy preferential policies such as tax reductions and financing support. Under the current regulations, since 2018, blockchain-based cryptocurrency trading and brokerage enterprises have been excluded from the certification scope of risk enterprises and classified in the same restricted industry category as bars, nightclubs, and similar venues.

The purpose of this legislative amendment is to create a more favorable policy environment for cryptocurrency companies, encouraging innovation and development in the industry. Industry insiders believe that this initiative will help attract more talent and capital into the field, promoting the long-term prosperity of South Korea's cryptocurrency industry. However, some analysts also remind that the government needs to weigh the risks when formulating specific policies to ensure that investors' interests are adequately protected.

2. The Federal Reserve's June meeting minutes may reveal the possibility of a rate cut in September.

The minutes of the Federal Reserve's June meeting are set to be released at 02:00 Beijing time on Thursday. According to foreign media analysis reports, the minutes may reveal divisions within the Federal Reserve regarding whether to cut interest rates in September.

Some policymakers expect two interest rate cuts this year, while others predict that there will be no cuts at all. Morgan Stanley analysts have stated that they will look for clues that lead to this divergence. More hawkish committee members may indicate that they are waiting for an increase in the unemployment rate, or that they need more time to assess the impact of tariffs and other fiscal policies on inflation. Powell has indicated that he expects the inflation effects of tariffs to become evident this summer, and suggested that the only obstacle between the Fed and a more accommodative policy is the uncertainty of these price pressures. If the meeting minutes show some agreement with this view, it could signal a shift towards a more proactive stance by the Fed.

Market participants generally believe that the direction of the Federal Reserve's monetary policy will directly affect the trends in the cryptocurrency market. If the Federal Reserve lowers interest rates in September, it could help alleviate the decline in market risk appetite, thereby injecting certain momentum into the cryptocurrency market. However, some analysts also warn that overly loose monetary policy could trigger rising inflation, increasing investors' demand for safe-haven assets, which would negatively impact the cryptocurrency market.

3. Beijing Internet Finance Association warns against illegal fundraising using concepts such as "stablecoins".

The Beijing Internet Finance Industry Association has issued a risk warning, urging caution against illegal fundraising using new concepts such as "stablecoins".

The association stated that recently various types of digital currencies represented by "stablecoins" and related concepts have attracted market attention. Some illegal organizations and individuals, under the guise of "financial innovation", "blockchain technology", "digital economy", and "digital assets", exploit the public's limited understanding of new financial concepts and induce the public to invest funds for trading speculation by issuing or hyping so-called "virtual currencies", "digital assets", and "stablecoin investment projects" with promises of high returns.

Industry insiders point out that stablecoins, as a type of cryptocurrency pegged to fiat currencies and other valuable assets, have characteristics such as price stability and strong liquidity, making them promising for applications in payment settlements, cross-border remittances, and other fields. However, there are also certain risks, such as insufficient capital reserves by issuers and lack of auditing and regulation, which may lead to stablecoins losing their peg and experiencing severe depreciation.

Experts suggest that regulatory agencies should strengthen supervision over the issuance and trading of stablecoins, establish clear market access standards and investor suitability requirements, and prevent illegal fundraising and market manipulation. Investors should also enhance their risk awareness when participating in stablecoin investments, carefully identify the authenticity of projects, and avoid blindly chasing trends.