The USDT exchange rate has dropped below 7.

The whole community has exploded in the past couple of days, and everyone is asking the same question: Why isn’t the stablecoin stable anymore?

But have you ever thought that the real question isn’t “Why is USDT falling,” but rather—are you in this market to profit from exchange rate arbitrage, or from the price increase of coins? If ETH surges 10% in a single day, isn’t that better than staring at exchange rate fluctuations?

The drop of USDT below 7 is actually the result of two forces clashing head-on.

The first force: The Fed’s policy is about to change. Trump has recently made it clear that he wants to replace the current Fed Chair and put his own people in charge. The purpose is clear—open the floodgates and stimulate the economy. Now, market expectations have completely shifted, with a nearly 90% chance of a rate cut in December, and possibly a direct 50 basis point cut next year. Once the dollar weakens, the RMB will appreciate passively, and the 7 mark might just be the beginning.

The second force: The gray channels for stablecoins are being cleaned up. Recently, regulators have cracked down on illegal foreign exchange and money laundering activities using USDT, and the “underground channels” for cross-border capital have shrunk instantly. A large amount of USDT is being panic-sold as a hedge, supply has surged, and so the exchange rate has naturally dropped.

Have you noticed there’s a contradiction here? USDT is falling, but coin prices are rising.

To put it simply: once the Fed opens the floodgates, global funds need a new reservoir, and the crypto market is that reservoir. The crackdown on illegal activities may seem bearish on the surface, but in reality, it’s clearing the way for compliant funds to enter. And history is clear—every time before a bull market starts, USDT’s price comes under short-term pressure, which might actually be a signal.

Newcomers are panicking: “Even stablecoins aren’t stable anymore?”
Veterans are calm: “A drop in USDT is just an opportunity; it’s always like this before a bull run.”

Some people are already taking action: exchanging at 7 now, waiting until it goes back to 7.5 to cash out, and making an easy profit on the spread.

The market logic has changed, so the strategies have to change too. Are you going to keep stressing over exchange rate numbers, or see the trend and get on board?