Recently, the OTC price of USDT has been dropping, and many people are starting to worry: "Is something wrong with stablecoins?" Relax—this decline has nothing to do with so-called "explosive risk." It's simply the normal disappearance of OTC premiums.

To put it plainly, the drop in USDT price is just a story of supply and demand imbalance. The current market is stuck in a sideways range, and the money-making effect? Basically none. New players are waiting on the sidelines, so demand for buying USDT naturally shrinks. On the other hand, the selling side is bustling—project teams are cashing out, early players are taking profits and leaving, and those at a loss are cutting their losses and quitting; all kinds of funds are dumping USDT. Fewer buyers and more sellers—how could the price not fall?

OTC merchants aren't having an easy time either. After tighter regulations, the compliance threshold for receiving USDT has risen, so merchants either buy at lower prices or raise fees to pass on costs, directly weakening buying power. There used to be people arbitraging on RMB exchange rate fluctuations, but now that the rate is stable, that demand has vanished and the premium space for USDT is gone.

In fact, the OTC price of USDT is like a "sentiment indicator" for the crypto market—when the price rises, new funds flow in; when it’s flat, the market is on hold; when it drops, retail investors are retreating. But the key point is: the external peg remains stable, on-chain data shows no anomalies, and the funding system is operating normally. What does this mean? It means the premium has simply disappeared, not that there’s systemic risk.

From a practical perspective, the current low USDT price means different things to different people. Want to buy the dip or just entering the market? Exchanging for USDT now saves you some entry cost—it’s a good deal. But if you’re thinking of hoarding USDT for arbitrage? Don’t waste your time, the premium space is basically negligible now. Remember: stablecoins are tools for capital movement, not investment targets.

To be blunt—when the bull market comes, USDT prices will naturally rise; during this kind of bear market consolidation, low USDT prices are normal. Focusing too much on short-term fluctuations is pointless; it’s better to pay attention to the rhythm of the market. Don’t operate blindly or get swayed by panic—when the market truly reverses, only then will you be able to seize the opportunity.