Why is there offline trading for USDT (Why is the price of USDT so low)?

There are two reasons why there is offline trading for USDT. First is the difference between traditional markets and cryptocurrencies. Second is the high volatility of Bitcoin in traditional markets, but as encrypted assets are increasingly accepted and favored by mainstream, Bitcoin is becoming a means of value storage.

The third point is why USDT needs to be distinguished from the traditional financial system. With the development of blockchain technology reaching a certain stage, besides centralized exchanges, there are also some non-custodial, third-party service providers that need to introduce new payment tools and applications to meet the needs of users. So why does USDT need to be traded in the traditional market? We can analyze it from several perspectives, first let’s take a look at what online trading is.

The first point is how to facilitate the circulation of funds in various forms. Through this way, it promotes the flow of funds. Generally, individual investors can invest through bank transfers or other similar platforms. These methods belong to the category of cash flow management, which allows people to easily obtain stable and secure investment returns, but the complexity of many operations leads to risks. And the high returns generated in this process may also result in huge losses.

The second issue is how to convert all profits into price pressure that one can bear in the long run, so that one’s capital can exist in the hands of others for a long time. This allows each participant to earn more money and avoids the occurrence of huge profits. So if a person is not willing to bear greater economic losses, then he can choose to do other things.

The problem involved here is that if there are not enough customers, such as retail investors who want to buy coins, they would hope to sell to institutions or companies to reduce costs. This creates a cyclical mechanism where a large number of orders occur after someone wants to buy something to achieve a price drop, which often leads to one-sided selling pressure (i.e., liquidation), which is very common.

Another point that everyone is concerned about is whether those who do not want to invest their funds should make wise choices as soon as possible. In fact, this point makes sense, and now many people are discussing how to hedge risks, which is the most core part.

Why is the price of USDT so low?

Why is the price of USDT so low?

Because in the past month, the prices of Bitcoin and stablecoins have been continuously rising. According to CoinGecko’s data, as of November 19th, Bitcoin has dropped to a historical low of nearly $11,000 (about $60,000).

However, due to factors such as reduced demand for Bitcoin, increased trading activity, and increased global macroeconomic uncertainty, USDT has also experienced a significant pullback. Currently, USDC is still the largest single fiat currency in the market, and USDK remains in a leading position.

So, what is the reason why USDT is so valuable at present, leading to its price drop?

Let’s first take a look at the driving force behind USDK – USDT. USDT is a wallet service custodied by US banks, used to store customers’ private keys. Through this way, it can securely store funds and transfer them on the network; it also allows users to transfer their digital currencies to other accounts.

Although many crypto enthusiasts have started to question the viability and effectiveness of USDT, they believe that this token is not much different from other financial assets. In practice, this does not mean that they can be used, because USDT only serves as a means of payment, so it is not a true fiat currency or sovereign support. (Note: generally, USDT is usually denominated in US dollars and issued by the government), so when people link their digital wallet addresses to an external wallet, they receive a small note sent to the other party, and then these large sums of money will be transferred to the account of the other party in the overseas account (such as an exchange).

In addition, due to the highly decentralized nature of USDT, its market value is second only to Bitcoin and the S&P 500 index, and it is the world’s first fully open-source and permissionless stablecoin, and the only publicly traded digital security.