USDT dropped to 6.92, is the Chinese Yuan suddenly appreciating? Conclusion: No.
Currently, in the foreign exchange market, the US Dollar is still around 7.04 against the Chinese Yuan and has not concurrently dropped to the 6.9 range. Therefore, USDT dropping to 6.92 on Binance P2P more reflects the supply and demand changes in the over-the-counter market for stablecoins, rather than the actual exchange rate fluctuations of the Chinese Yuan itself. USDT is not physical US Dollars; its price is determined by over-the-counter trading sentiment. When a large amount of capital chooses to sell USDT for Chinese Yuan, market risk appetite decreases, or it is in a defensive phase before macro events, it will lead to USDT trading at a discount. Historically, USDT trading at a premium usually corresponds to capital inflow and a bullish market, while a discount indicates capital flowing back to fiat currency and a cautious sentiment. However, this does not necessarily mean that the market will immediately decline; it is more a signal of changing capital attitudes.
In summary: USDT reaching 6.92 is primarily due to an increase in short-term selling pressure in the over-the-counter market, rather than any substantial change in the exchange rate of the Chinese Yuan against the US Dollar. $ETH
