At two in the morning, when the Federal Reserve's "dot plot" was projected on the big screen in the trading room, the newcomers cheered for the "40 billion liquidity injection," while the veterans silently began to reduce their holdings - they knew that the real test was just beginning.
Last night's Federal Reserve meeting was simply a financial magic show. Chairman Powell held up a "big stick": hinting that there might only be one interest rate cut in 2026, and liquidity easing was hopeless; with the other hand, he presented a "sweet date": immediately launching a monthly $40 billion asset purchase.
The trading room instantly erupted. "The money is flowing! The bull market is restarting!" Intern Xiao Liu excitedly pounded the table. Bitcoin rebounded by 3%, and the entire crypto market was in jubilation.
Only Old Chen, sitting in the corner, stared at the small text on the screen that said 'This is not quantitative easing', a hint of bitter laughter at the corner of his mouth. "Remember the 'taper tantrum' in 2013? Back then the Federal Reserve also first gave candy, then pulled the ladder."
Sure enough, half an hour later the market began to differentiate. Smart money quietly sold during the rebound, while those retail investors who rushed in were still fantasizing about 'trillions of dollars flooding into the crypto market'. On the candlestick chart, each spike was accompanied by larger selling pressure.
"Should we run?" Xiao Liu leaned over and asked softly.
Old Chen did not answer directly; instead, he asked a question: "Do you think it is wise to completely tie your wealth's fate to whether the Federal Reserve 'gives candy' or 'pulls the ladder'?"
He opened his asset page, and a unique configuration jumped into view: 35% of his position quietly resting in an asset called Decentralized USD. On a night when Bitcoin fluctuated by 3%, the net value curve of this asset was as flat as a straightened ECG.
"Is this... a stablecoin?" Xiao Liu was puzzled.
"But not entirely," Old Chen explained, "Ordinary stablecoins are essentially 'IOUs' from centralized institutions, relying on dollar reserves in banks. The real Decentralized USD, each coin is backed by over-collateralized crypto assets on the blockchain, and anyone can verify it in real-time. Its stability doesn't rely on the Federal Reserve's promises, but on mathematics and code."
At four in the morning, the prophecy began to unfold. The hint from the Federal Reserve to 'stop purchases next year' took root, and the market shifted from revelry to unease. Bitcoin retraced all its gains, and those chasing news saw even larger declines in altcoins. In the trading room, many people's accounts shifted from profit to loss.
Old Chen's account, because of that 35% position in Decentralized USD, had an overall drawdown of less than 1%. More crucially, when others were panicking and cutting losses, the Decentralized USD in his hands became a 'strategic reserve' that could be deployed at any time.
#USDD sees stability. That night I fully understood: in the Federal Reserve's game of 'carrot and stick', the cleverest players are not those who predict the next policy shift, but those who build asset defenses that do not rely on any policy shifts.
As the market celebrated Powell's 'carrot' once again, the true wise ones were already asking: how much of my asset allocation is stable regardless of whether the Federal Reserve 'makes promises' or 'pulls the rug'? In this era where macro policies are toyed with at will, having the confidence not to be 'played' by anyone is the greatest freedom.
