USDT hasn't changed, but assets are shrinking: after the dollar breaks 7, crypto users must face TradFi

KillCarl · 2025-12-31T06:42:57+00:00

When the US dollar depreciates and the Chinese yuan appreciates, the numbers in your account remain stable, but the actual value you can exchange for is shrinking. More importantly, during this period, the value of crypto assets themselves has not shown a significant increase, meaning many people are facing dual pressures: **Exchange rates are eating into you, and the market is not rising.**

KillCarl

2025-12-31 06:42:57

Recently, the US dollar has been weakening continuously, breaking below 7 against the RMB again.

For many Chinese crypto users, this is not just macro-level “financial news,” but a reality that is happening: The amount of USDT hasn’t changed, but the actual asset value is decreasing.

Because USDT is essentially pegged to the dollar, not to purchasing power.

When the dollar depreciates and the RMB appreciates, the numbers in your account remain stable, but the real value you can exchange for is shrinking. More importantly, during this period, crypto assets themselves haven’t shown significant gains, which means many people are facing two pressures at once: The exchange rate eats into you, and the market doesn’t rise.

This is also why more and more crypto users are beginning to realize a problem: Holding USDT long-term is actually a passive bet on the dollar.

And once the dollar enters a downtrend, this “seemingly safest” position becomes an invisible risk.

The significance of TradFi (Traditional Finance) begins to emerge at this stage.

Gold, silver, US bonds, commodities—these are not fundamentally opposed to crypto but are another set of asset logic. When the dollar weakens and inflation expectations rise, these assets covered by TradFi are often more capable of playing the roles of “hedging” and “preservation of value,” providing a place for funds to go, rather than just passively shrinking in USDT.

Truly mature asset allocation has never been about betting on a single direction. Holding only USDT is betting that the dollar won’t depreciate; Only buying crypto is betting that the market will reverse soon; What TradFi offers is more options under different market cycles.

For crypto users, future competitiveness depends not on whether they believe in coins, but on whether they have strategies to respond in different market conditions. It is precisely because of this that more and more users are beginning to expect trading platforms to provide more comprehensive TradFi access, so that funds don’t have to be stuck in a single narrative.

The market environment is changing, The structure remains the same, but risks will only become more concentrated.

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