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The People's Bank of China reiterated the regulatory requirements for virtual currencies, prohibiting related businesses and pegged stablecoins to the renminbi

The People's Bank of China today reiterated in its financial education campaign that virtual currencies such as Bitcoin, Ethereum, and Tether do not have legal tender status and cannot be used for currency circulation; conducting virtual currency-related businesses within the country is considered illegal financial activity and is strictly prohibited.The People's Bank of China stated that without the consent of relevant authorities, domestic entities and their controlled overseas entities are not allowed to issue virtual currencies abroad, and no units or individuals, whether domestic or foreign, are permitted to issue stablecoins pegged to the Renminbi abroad. The People's Bank reminds the public not to participate in virtual currency issuance, trading, investment, or mining activities, to be wary of high-yield investment scams, and to avoid renting out bank cards, payment accounts, or participating in virtual currencies.In addition, the People's Bank advises caution against virtual currency investment products and trading platforms that claim "guaranteed profits" or "high interest"; not to participate in virtual currency issuance, trading, investment, or "mining" activities; not to join communities promoting virtual currency activities, not to click on links containing overseas virtual currency trading platforms, or download related apps; not to lend or rent out bank cards or payment accounts, not to buy or sell virtual currencies "on behalf of others" as instructed, and not to act as "drivers," "currency dealers," or "U merchants"; and to report any clues related to virtual currency business activities to the relevant regulatory authorities in a timely manner.

Analysis: Before the Federal Reserve's decision, Bitcoin exhibited a relatively independent market trend, with reduced correlation to the US Dollar Index and US stocks

According to CoinDesk, Bitcoin has shown a relatively independent trend before the Federal Reserve's interest rate decision was announced, with a significant decrease in its short-term correlation with the US dollar index and US stocks. Alice Liu, the research director at CoinMarketCap, stated that the short-term correlation coefficient between Bitcoin and the US dollar index has dropped to 0.08, compared to -0.54 over the past 30 days; its correlation coefficients with the S&P 500 index and the Nasdaq index have decreased to 0.43 and 0.3, respectively, from 0.75 and 0.6 the previous day.Liu believes that the market has recently shifted its attention to the CLARITY Act, which failed to pass a key procedural vote in the Senate on Tuesday, temporarily overshadowing regulatory progress with macro factors. As the correlation weakens, the strategy of hedging Bitcoin long positions by shorting S&P 500 futures has currently decreased in reliability. The market generally expects the Federal Reserve to raise interest rates by 25 basis points, a scenario that has been largely priced in.This decision will test whether Bitcoin can re-establish its linkage with the US dollar and US stocks; traders also need to pay attention to the guidance after the meeting and fluctuations in US Treasury yields, as a significant rise in the latter could tighten financial conditions and drive risk-averse capital flows into the crypto market.

first_img Bitcoin ETF saw a net inflow of 3.8 billion USD over three weeks, setting the strongest record for 2026

The U.S. spot Bitcoin ETF recorded the strongest consecutive three-week inflow of funds since 2026. SoSoValue data shows that as of the week ending September 5, the net inflow was $986.9 million, with a cumulative net inflow of $3.8 billion over the past three weeks, an increase of about 7% compared to the previous week. Despite a significant rebound in demand, the net inflow for Bitcoin ETFs this year is still approximately negative $1 billion.On Friday, the single-day net inflow was $174.6 million, a noticeable drop from over $731 million on Thursday. Among them, BlackRock's iShares Bitcoin Trust (IBIT) attracted $117.4 million, accounting for about 67% of the day's net inflow, while Fidelity's Wise Origin Bitcoin Fund (FBTC) had a net inflow of $57.2 million, with the remaining U.S. spot Bitcoin ETFs having no net inflow that day. On that day, Bitcoin briefly fell below $79,000, then rebounded to around $79,700, still up about 2.6% over the past 7 days.As of Friday, the total net assets of U.S. spot Bitcoin ETFs were approximately $101.3 billion, with a cumulative net inflow of $55.6 billion. Meanwhile, the inflow of funds into Ethereum and XRP spot ETFs has significantly cooled, with net inflows for the week dropping to $21.84 million and $1.9 million, respectively, a decline of about 74% and 83% compared to the previous week; their cumulative net inflows for the year are approximately $863 million and $515 million, respectively.
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