The USDT price inversion has been ongoing for a while. The USD to RMB exchange rate is at 7.03, but the OTC USDT price has dropped to 6.85, with a discount of 2.5%.

From the market perspective, the logic behind this is quite clear. When the market was hot a while ago, investor sentiment was high, and they poured money into the crypto space. USDT was in high demand, naturally leading to a premium. Now that the market has cooled down, more people are withdrawing funds than depositing, resulting in USDT accumulation on the books and a natural price decline.

Regulatory measures are also playing a role. Recently, there has been increased control over C2C transactions, and the risks associated with deposit and withdrawal channels are rising. Cases of frozen accounts have become frequent, and this uncertainty is directly reflected in the USDT discount—investors are pricing in higher risks of cashing out USDT.

However, it must be said that USDT itself is not truly pegged to the dollar—this point is often overlooked. Therefore, this discount is not only a currency exchange issue but also a comprehensive market response to liquidity risks and policy risks.