A recent wave of decline caught many people off guard. Bitcoin dropped below 88,000, and over 115,700 traders were liquidated in the derivatives market overnight, evaporating $270 million—this is no longer just a correction, but more like a systemic risk release.

Looking closely at the source of this decline, the problem isn’t within the crypto space itself, but on the traditional finance side. The Fed’s rate cut expectations are rapidly cooling down. According to the latest data, the probability of a rate cut in January is only 24.4%. Powell’s recent statements have also become ambiguous, with many officials starting to send more hawkish signals. Even Standard Chartered has cut its Bitcoin target price from 200,000 to 100,000. When these signals stack up, the liquidity that supports the entire market begins to struggle.

At such critical moments, you can see the differences among participants. Some panic and sell off assets in a rush; others, despite account fluctuations, remain clear-headed—they consider how to protect their existing assets while preparing for the next opportunity.

Anyone who has experienced several cycles knows that big opportunities often hide after sharp declines. The key is that during this process, your assets need a “safe haven.” Many hold some stablecoins for this purpose: not to make quick profits, but to have bullets ready to buy the dip when the market is in extreme panic.

Take USDD, a decentralized over-collateralized stablecoin, as an example. It demonstrates real value during such market crashes. First, it isn’t affected by the chain reaction of liquidation, so assets remain stable. Second, when the market hits an extreme low and everyone is screaming, you can instantly convert your stablecoins into funds for bottom-fishing, and your mindset changes completely.

Look at the two types of people around you: one group follows the crowd’s emotions and is forced to close positions during a plunge; the other group has already made risk preparations, and a big drop becomes an opportunity to readjust their positions. In the long run, the wealth trajectories of these two groups will diverge significantly.

Market declines themselves are nothing surprising; what’s surprising is that many people still haven’t figured out that in such a highly volatile market, relying solely on chasing rallies and selling on dips is a recipe for failure. True defense depends on proactive asset allocation and risk awareness.