Last night, the USDT exchange rate against the RMB fell below 7.0, and many people panicked. But strangely, mainstream currencies should rise and continue to rise. What is hidden in this?

Let's talk about two key variables first.

On the Fed's side, expectations of interest rate cuts are getting stronger and stronger. The market has given the probability of a rate cut in December close to 90%, and once the liquidity of the US dollar is relaxed, USDT, a stablecoin pegged to the US dollar, will naturally be under pressure. On the other hand, the domestic cleanup of cross-border foreign exchange and gray channels is increasing, and a large number of safe-haven funds choose to sell USDT back.

But that's not a bad thing.

Instead, really sophisticated players are having fun. Why? Because historical experience tells us that every time USDT is under significant pressure, it often corresponds to the eve of a bull market. In anticipation of the flood of the US dollar, global funds need to find a way out, and the crypto market is one of the largest reservoirs. The U price falls, the currency price rises, and this divergence itself is a signal of liquidity influx.

This is where the cognitive difference between novices and veterans lies. When a newbie sees the U price breaking 7, his first reaction is "It's over, is it going to crash?" The veteran is calculating: "7.0 into U, wait for it to rise back to 7.5, isn't the 10% price difference fragrant?" "

The gap in market perception is always the biggest source of opportunity. When most people are still worried about what is wrong with the U price, smart money is already being laid out.

What do you think? Is it to hoard coins while the low is low, or is the wait-and-see signal clearer?