USDT has dropped below 7. Has your group chat exploded with messages too?

Interestingly, while USDT is falling, ETH quietly surged 10% last night. Isn’t that a contradiction? Quite the opposite—it could be a signal that the market is turning.

**Two variables are at play:**

First, there’s a change coming at the Fed’s table. Trump is pushing for Hassett to take over, and the general expectation is for a more aggressive rate-cutting approach. The probability of a December rate cut has soared to nearly 90%, and some institutions are even predicting a 50 basis point cut next year. A weaker US dollar is almost a given, the RMB will appreciate passively, and USDT breaking below 7 might just be the first step.

Second, regulators have recently been keeping a close eye on the cross-border flow of stablecoins. Illegal currency exchange and suspicious fund channels are being heavily scrutinized, prompting many to sell off for safety. With a sudden glut of USDT in the market, the exchange rate naturally can't hold up.

**Why is USDT dropping while crypto is rising?**

The logic is actually simple:
- With dollar liquidity increasing, funds need an outlet, and crypto assets have become the new reservoir;
- Tighter regulation isn’t about suppressing the industry, but cleaning up the gray areas, so compliant capital actually feels more confident coming in;
- Historically, every bull market has started with USDT exchange rates under pressure—this could well be the precursor to a new rally.

**The cognitive gap is widening:**

Newbies are panicking: "Is USDT collapsing? What about my money?"
Veterans are calculating: "Buy USDT low now, wait for the rate to climb back to 7.5—a 10% profit, isn’t that sweet?"

The market will never wait for everyone to understand what’s going on. Are you trembling at the sight of the exchange rate numbers, or are you focusing on seizing the opportunity? That’s the difference between making money and just being a spectator.