To be honest, losing money on trades recently is really not just your problem. I checked the USDT lying in the exchange, and the losses add up to almost the price of a luxury car😅

But have you noticed that the RMB has been appreciating particularly fast lately? The underlying reason is actually quite interesting.

The Federal Reserve has cut interest rates three times this year, with a total reduction of 75 basis points. To compare, here on our side, we only cut interest rates once in May, with a margin of only 10 basis points. The difference in magnitude is obvious.

As the pressure for US dollar interest rate hikes eases and domestic policy space remains relatively loose, this directly boosts the RMB's appreciation expectations. Simply put, when the US dollar weakens, the RMB naturally strengthens. Behind this exchange rate movement, there is actually a mismatch in the monetary policy rhythms of the two major economies—one is releasing liquidity, while the other is cautiously adjusting. This also explains why holding USDT results in unrealized losses, because relative to RMB valuation, US dollar assets are depreciating.