Recently, friends in the crypto circle have all been complaining: Why is USDT becoming less and less valuable? Is it about to collapse? Let’s get straight to the point—there’s nothing wrong with USDT itself. The drop in value is purely due to the off-market premium cooling off and has absolutely nothing to do with any so-called blowup.

Why is USDT dropping? Simply put, it’s because of a mismatch between supply and demand in the market. With the current bearish trend and the market moving sideways every day, there’s no money-making effect, so newcomers don’t dare to enter. There are very few buyers for USDT; meanwhile, there’s a long line of people selling—projects cashing out, some people who’ve made enough leaving the market, and others who can’t hold on and are exiting the space—all dumping USDT. Supply far exceeds demand, so of course, the price gets pushed down.

On top of that, regulations are tightening on OTC merchants, making it harder to accept USDT, with stricter rules and higher fees. Merchants are forced to lower their buying price and increase fees, which weakens buying power even further, so the price of USDT naturally can’t rise. In the past, some people profited from exchange rate arbitrage, but now the RMB exchange rate is super stable, closing off arbitrage opportunities, so that demand is gone too.

In reality, USDT is just a barometer of sentiment in the crypto world—you can see the market at a glance: when USDT goes up, it means lots of new retail investors are entering; when it’s flat, everyone is watching and not making moves; when it drops, to put it bluntly, it means retail investors are running for the exit. But let’s be clear: offshore markets are normal, nothing unusual on-chain, funds are safe and the system isn’t collapsing. This drop is just the premium disappearing, not a blowup!

Here’s some practical advice: if you want to buy the dip or are new to the space, now is actually a good time to swap for USDT—you’re basically saving on entry fees. If you want to hoard USDT for arbitrage, I’d advise you to give up, there’s basically no room for that now. Remember, USDT is just a bridge tool for moving funds, not an investment!

One last truth: when the bull market comes, USDT will naturally rise; in the current bearish and choppy market, cheap USDT is the norm. Don’t get scared by short-term volatility or blindly follow market sentiment—doing nothing is better than making random moves.

#btc #eth