U price has broken 7! This news went viral in the community last night.

A lot of people DM'd me: "Why did U suddenly drop like this?" I countered with a question: Are you here to watch U, or to watch the coins?

ETH surged 10% in a single day—doesn't that deserve your attention?

On the surface, it looks like U is dropping, but in reality, it's two forces colliding head-on.

**First force: Rising expectations of rate cuts**
The winds of Fed policy shifts are blowing harder. There are market rumors that Trump plans to reshuffle the central bank leadership and push for more aggressive rate cuts. Data shows the probability of a rate cut in December has soared to nearly 90%, and another 50 basis points could be cut next year. A weaker US dollar is almost a sure thing, the RMB will passively appreciate, and breaking 7 might just be the beginning.

**Second force: Tighter stablecoin channels**
Recently, there's been a significant crackdown on illegal USDT exchanges and money laundering. This hit the gray area of cross-border capital flows, and many holders, looking to avoid risk, chose to sell off. The supply surged instantly, and the exchange rate came under natural pressure.

Does it sound contradictory? U is dropping, but coins are pumping?

There's a deeper logic behind this. Once the dollar depreciates, capital needs a new safe haven, and crypto becomes a reservoir for global capital. Regulatory crackdowns may cause short-term panic, but in the long run they're actually clearing the market and paving the way for compliant funds. Plus, before every major market move, U usually experiences a wave of short-term volatility—which could actually be a signal.

Newbies are panicking: "Even U is unstable now?"
Veterans are calm: "This is exactly when opportunities arise."

Some have already started moving—buying U now, waiting for it to recover to 7.5 before swapping back, which could net nearly 10%.

To sum it up: the logic has changed, so the strategy has to change too.

Rate cut expectations are already on the table, and a 90% probability means the market has been positioning in advance. If you still don’t know what to do, maybe just watch where the smart money is flowing first.