How do professional teams stabilize the drawdown amid the December crypto market's $910 billion sell-off?

【Crypto World】The December crypto market experienced a massive $910 billion sell-off, with investors dubbing it “December Surrender.” Bitcoin plummeted from its peak of $94,000 to $88,000, and Ethereum also fell 7.8% amid sparse buying interest — the selling pressure was indeed fierce.

Interestingly, professional trading teams successfully mitigated this shock through a strategic combination. Their approach was straightforward: reduce leverage from high levels to around 1.3x, increase stablecoin holdings to over 23% as a “safety cushion,” and decisively cut holdings of highly volatile altcoins. The result? Potential drawdowns were cut to below approximately 85% — effectively protecting most of their principal during this sell-off.

Another fascinating phenomenon is the severe divergence among different tokens. Privacy coins like NIGHT and AI-related tokens like TAO showed resilience and became safe havens. Ironically, meme coins like Whitewhale turned into “cash machines” for fund managers — they sold off these high-risk assets to free up liquidity. From an operational perspective, major institutions are clearly positioning themselves in advance for possible market fluctuations in Q1 2026.