Recently, the USDT over-the-counter price dropped below 7 RMB, and the comment section exploded—some say stablecoins are about to collapse, others think big money is fleeing. But the reality might be the opposite: this drop is often a signal that the market is about to take off.

To put it simply: USDT drops because people are frantically "selling USDT to buy coins."

Let’s look at three actions:
Leverage demand has cooled off. In the short term, there’s a strong wait-and-see sentiment, so fewer people are borrowing USDT to leverage trade, which naturally weakens demand.
OTC whales are rotating their portfolios. They’re exchanging their USDT for BTC, ETH, or other coins, leading to an oversupply of USDT—this actually indicates that major players are quietly positioning themselves.
The domestic premium has fallen, but this isn’t directly related to coin prices. The OTC price of USDT is just a supply-and-demand game in the RMB region; it doesn’t mean “depegging” or “collapse.”

So why does USDT drop while coin prices rise?
Because funds are flowing from stablecoins into cryptocurrencies. When a massive wave of buying comes in, you get this scenario:
USDT is sold off → its price drops
Coins are snapped up → the market rises
These two moves happen simultaneously. They’re not contradictory—they’re direct evidence of capital flows.

Another key point: OTC drop ≠ on-exchange drop.
OTC: USDT price falls (RMB region’s supply-demand fluctuation)
On-exchange: BTC, ETH surge (global market is accumulating)

So don’t be scared by surface-level numbers. Understand where the money is flowing, and you’ll be able to seize real opportunities.