The RMB/USDT rate has dropped to 6.9, that's really a huge discount.

I'm wondering if it's possible to arbitrage by depositing now and withdrawing after a few days.
Will the USDT price rebound in the short term or continue to fall?

Actually, regarding the USDT price, I've seen two viewpoints:
One is that China's recent announcement of tightening policies on virtual currencies has caused many people domestically to cash out; the other is that this kind of situation happens several times every year, so it's not necessarily policy-driven.

My own understanding is that policy news acts more like a trigger, but essentially it's because the market has been sluggish, there's no profit effect, and most people are bearish, so the demand to cash out has long existed. The policy just accelerated and amplified this demand.

I'm not sure if this understanding is correct. Is there any expert who can explain this in more detail?