Today, the Binance C2C market U price is 6.98, which is 0.01 higher than the exchange rate of 6.97 for US dollars to Chinese yuan in Alipay.

This means that the long-standing negative premium of USDT has finally been erased, so what exactly happened behind this?

In my opinion, there are two reasons:

1. The crypto market has been continuously plummeting, leading to an increasing demand for USDT, with many coming in to buy the dip and being forced to replenish margin.

2. The fluctuations in the USDT market have widened, allowing for large-scale participation in arbitrage trading. I observed that since mid-January, the Binance C2C trading depth has shown active arbitrage, and the U once shifted from a negative premium to a positive premium, which was quickly erased.

As for whether the U price can long-term escape the positive/negative premium, it remains to be seen. However, this time BTC dropping to above 7w likely indicates a bottom, as market funds have already voted with their feet.

What I am most worried about now is Huazi @Jackyi_ld, who, as the largest prominent bull in the ETH market, has been targeted by bears as a concentrated hunting target.

I hope Huazi can hold on. In the end, regardless of whether he gets liquidated or not, the characteristics of this bear market bottom are very evident, and brothers must not fall before dawn.