Recently, quite a few friends have DM’d me asking: Why did USDT suddenly drop below 7? Should we be worried?

Let me ask you a question first—why did you enter this space? Are you here to obsess over a few cents of exchange rate fluctuation, or to capture real market opportunities?

Take yesterday as an example: ETH surged 10% in a single day—did you catch that move? By comparison, is the small swing in USDT’s price really worth stressing over?

Actually, the recent moves in USDT are driven by two intersecting trends:

First, expectations around the US dollar are shifting. The market is almost unanimously betting on a rate cut in December, putting pressure on the dollar index, strengthening the RMB, and naturally leading to adjustments in USDT’s OTC price.

Second, payment channels are being cleaned up. Recently, regulators have been closely monitoring non-compliant fund flows; some gray channels have been cut off, and some selling pressure has emerged for risk-avoidance.

That’s why you see this seemingly contradictory picture: USDT is dropping, but crypto prices are rising.

The logic is simple—
The whole world is waiting for the Fed to inject liquidity, and the crypto market, as a major liquidity sink, has already started to price this in. While channel crackdowns may cause short-term volatility, in the long run, they’re actually cleaning up the environment and preparing for larger-scale capital inflows.

So, newbies get nervous when USDT drops, but seasoned players might actually take the opportunity to buy the dip and stock up.

The market is always like this: buy the rumor, sell the news. The expectation of rate cuts has already been priced in, and when it actually happens, the reaction could be completely different.

USDT is just a tool—don’t treat it as a trading target. Understanding the flow and cycle of capital is far more important than staring at the exchange rate numbers.