That means the bull market is here

U price unexpectedly broke 7! The Federal Reserve's "rate cut" + China's strong measures, has the logic of the crypto world completely changed?
Today, the most asked question in the live broadcast was "Why did U drop?"
I countered with, "Did you come to the crypto world to trade U? Aren't you here to trade coins? Didn't the ETH you bought yesterday increase by 10%?

Overnight, the U price (USDT to RMB exchange rate) rarely broke 7! There was an outcry in the community: "I haven't seen it this low in so many years!" "Is the dollar going to be harvested?"

This is not just a simple exchange rate fluctuation; behind it are two major changes colliding:

1. Is the Federal Reserve about to "surrender"? Trump's people are coming
The news has basically been confirmed: Trump is determined to replace Powell and appoint his confidant Hassert to head the Federal Reserve. The core objective is singular: at all costs, significantly lower interest rates.

Market expectations have completely reversed: the probability of a rate cut in December has soared to nearly 90%, and a sharp 50 basis point cut next year would not be surprising. There is a strong expectation of a weakening dollar, and the pressure for the RMB to appreciate passively is enormous—breaking 7 in the exchange rate is just the beginning.

2. East University strikes hard, the stablecoin channel faces precise attacks
East University has recently cracked down severely on money laundering and illegal currency exchange using stablecoins. This blow directly strikes at the "gray channel" of cross-border funds. Many people were forced to sell U for hedging, increasing short-term supply and exacerbating the decline in the exchange rate.

Seemingly contradictory signals: why did the U price drop while coin prices soared?

This precisely reveals the complex logic of the current market:

· Clear expectation of dollar depreciation: if the Federal Reserve turns to aggressive rate cuts, global liquidity will flood again. Traditional funds are looking for exits, and cryptocurrencies become a potential reservoir.
· The bizarre mentality of "crackdown is actually good": some market views believe

· Market sentiment cycle reversal: as expectations improve, early bullish pressures are released, and the overall funding situation improves. The U price, as the price of the fiat currency channel, is viewed as short-term fluctuations characteristic of the early stages of a bull market—historically, in every bull market, the U price has gone through a similar pressure phase.

Old investors vs. new investors: a huge cognitive gap

Faced with volatility, the market is showing starkly different voices:

· New investors panic: "Is U going to be harvested?"
· Old investors remain calm: "This is how it is on the eve of a bull market; a drop in U is actually a good thing." Some even begin to strategize: now is the time to buy U at a low price, and when the exchange rate rises back to 7.5, they will exchange back, easily earning a 10% difference.
$BTC $ETH $DOGE