After keeping an eye on the Michigan Consumer Sentiment Index this morning, our group chat was instantly flooded with the number “50.3”—a bunch of people started panicking, asking me if they should immediately cut their losses and exit.

Let’s clarify the weight of this data: this isn’t just some self-indulgent forecast from an institution, but a real vote from ordinary Americans about their economic expectations. In November, the index dropped to its lowest point in a year and a half. To put it simply: American households are tightening their belts, have no confidence in future income, and worse yet, inflation expectations are still rising—everyone thinks prices will keep going up.

You might think this “emotional collapse” of the US economy has nothing to do with the crypto market, but capital flows have never recognized borders. After the data was released, the US Dollar Index immediately weakened. Market expectations for a December rate cut, which had been hyped up to over 70%, have now dropped to an awkward 66.6%. Keep in mind, the recent minor rebound in the crypto market was supported by expectations of the Fed “turning on the money taps.” Now that this pillar is starting to loosen, short-term volatility is definitely unavoidable.

But on the flip side, it’s not all bad news. Over the past few years, I’ve noticed a pattern: whenever there’s panic in traditional financial markets, decentralized assets like Bitcoin and ETH actually become a “Plan B” for some funds. Remember the Silicon Valley Bank collapse last year? While US stocks took a hit, Bitcoin quietly surged 20%. The logic is simple—when mainstream asset credibility is shaken, digital assets without a centralized issuer become a sort of hedge.

So from this perspective, now isn’t the time for blind panic. Here are three suggestions for everyone to consider next: