When Wall Street tech stocks and cryptocurrencies were ensnared by the same noose, GAIB's government bond-pegged stablecoin attracted 1.4 billion yuan against the trend — on the bloody night of liquidity withdrawal, the RWA protocol backed by real assets is becoming a new safe haven for funds.
On November 21, 2025, the global financial markets experienced a bloody massacre. The Nasdaq index plummeted by 2.15%, the Dow Jones index fell by 0.84%, and the S&P 500 index dropped by 1.55%. Meanwhile, the cryptocurrency market crashed simultaneously, with Bitcoin plunging to $86100 at 3 AM, experiencing a daily volatility of 5.4%.
Behind this dual massacre of stocks and cryptocurrencies lies the brutal reality that the Federal Reserve's probability of a rate cut in December plunged from 73% to 39.6%. However, on this night of spreading panic, the GAIB protocol's RWA (Real World Assets) stablecoin attracted 1.4 billion yuan in funding against the trend, with its government bond-pegged products maintaining an annualized yield of 5.2%, becoming a rare safe haven in the bloody market.
As of 10 AM Beijing time, the total liquidation amount across the crypto market reached $720 million, with over 32,000 leveraged traders being forced out. More shockingly, NVIDIA's stock experienced a rollercoaster—rising by 5% during the day, but closing down by 3.1%, leading to a single-day market value evaporation of $142.9 billion. This extreme volatility reveals a deep-seated crisis in the market: when liquidity recedes, all overvalued assets are left exposed.
01 Liquidity crisis: Why did the double whammy of stocks and cryptocurrencies explode before Thanksgiving?
The trigger for this round of sharp declines was the reversal of dollar liquidity expectations. The U.S. non-farm payroll data for September showed an increase of 119,000 jobs, far exceeding the expected 50,000, but the unemployment rate rose to 4.4%, the highest since October 2021. This combination of 'strong growth but weak quality' puts the Federal Reserve in a dilemma.
More critically, the reconstruction of policy expectations is required. Cleveland Federal Reserve President Mester explicitly warned: 'Further rate cuts while inflation remains above the 2% target may prolong the high inflation cycle.' This hawkish statement led to a significant repricing in the rate market, with the probability of a rate cut in December plummeting from 73% a week ago to 39.6%. The collective shift of Federal Reserve officials to a hawkish stance means the global liquidity easing expectations have completely collapsed.
In this context, GAIB's RWA products show unique advantages. Its AID stablecoin is supported by both U.S. Treasury bonds and GPU computing power assets, with low correlation to traditional assets. When Bitcoin plummeted by 4.5%, the AID price remained stable at $1, and the annualized yield stayed above 5.2%, becoming a temporary safe haven for funds.
02 Cross-market contagion: Why is Bitcoin falling harder than U.S. stocks?
During this round of sell-off, cryptocurrencies fell significantly more than the S&P 500 index, driven by three amplifying mechanisms:
The chain reaction of leverage liquidations is the most lethal. The leverage ratio in the Bitcoin market is far higher than that of U.S. stocks. When prices start to fall, a series of liquidations exacerbate selling pressure. In the past 24 hours, out of the $720 million in total liquidations across the network, long liquidations accounted for 78%, forming a death spiral of 'decline → liquidation → selling pressure → continued decline.'
Massive outflows from ETFs impact liquidity. The spot Bitcoin ETF has experienced net outflows for the sixth consecutive trading day, with a single-day outflow of $380 million. Major products like BlackRock's IBIT and Fidelity's FBTC are facing redemption waves, and this institutional selling pressure is directly transmitted to the spot market.
Liquidity layering exacerbates volatility. Due to the approaching Thanksgiving holiday, market makers have reduced trading sizes, and buy order depth has decreased by 40%. A $10 million sell order can trigger a 2% price fluctuation, significantly increasing market vulnerability.
GAIB's solution lies in diversifying revenue sources. Its stablecoin's revenue is 30% from U.S. Treasury bond interest and 70% from GPU computing power leasing income, which effectively hedges against single market risks with low correlation to the cryptocurrency market.
03 Sector rotation: Which assets perform resiliently during crises?
In this round of sharp declines, asset performance shows clear divergence:
Defensive assets are favored. Walmart rose by 6% against the trend, with its e-commerce business and essential consumption attributes becoming a safe haven for funds. Similarly, GAIB's RWA products saw a 240% increase in daily fund inflows due to their Treasury bond collateral and stable yield characteristics, indicating a concentration of smart money in quality assets.
There is significant internal divergence among tech stocks. Although NVIDIA exceeded earnings expectations, its stock still closed down by 3.1%; while giants like Microsoft and Apple, with stable cash flows, saw smaller declines. This divergence indicates that investors are more focused on profit quality and cash flow certainty rather than mere growth narratives.
Internal rotation of cryptocurrencies. Bitcoin fell by 4.2%, less than many altcoins. Ethereum dropped by 5.1%, and SOL fell by 7.3%, indicating that funds are concentrating on large-cap coins, with a significant decline in market risk appetite.
GAIB's value capture model highlights its advantages in this environment. Its sAID (staked AID) product achieves stable appreciation through an automatic compounding mechanism amidst market fluctuations. More importantly, its underlying assets are U.S. Treasury bonds and cash-flow-generating GPU power, with value support independent of market sentiment.
04 GAIB's defensive mechanism: How does RWA play a role in hedging against crises?
GAIB's RWA model demonstrates triple defensive value in this round of crisis:
Yield stability comes from asset portfolio design. The AID stablecoin is 80% allocated to U.S. Treasury bonds and 20% invested in GPU computing power assets. This structure allows it to remain stable during stock market declines, with annualized yields consistently around 5.2%.
Collateral quality provides a safety margin. Unlike traditional algorithmic stablecoins, AID is backed by real assets and adheres to a 1.3-1.5x over-collateralization principle. Even if the underlying asset value fluctuates, there is sufficient safety buffer.
Liquidity management innovation is key. Investors can redeem AID for cash at any time, avoiding the lock-up period restrictions of traditional financial products. This flexibility is particularly important in times of crisis, allowing investors to earn returns while maintaining cash reserves to seize opportunities.
Data shows that during the week of market decline, GAIB's inflow of funds increased by 240%, indicating that institutional investors are using RWA tools to hedge risks. This counter-cyclical growth validates the effectiveness of its business model.
05 Market Outlook: What conditions are needed for market stabilization?
In the short term, market stabilization requires three key conditions to be met simultaneously:
Clear signals from the Federal Reserve policy are a prerequisite. The December FOMC meeting will be an important node. If the Federal Reserve can provide clear forward guidance to eliminate policy uncertainty, market volatility is expected to decrease. Currently, the biggest concern in the market is the ambiguity of the policy path.
Continuous improvement in inflation data is fundamental. The next two CPI reports are particularly crucial, and if core PCE can fall below 2.6%, it will provide room for the Federal Reserve to adopt a dovish stance. The current inflation rate of 2.8% is still far above the Federal Reserve's target.
The formation of technical support is a signal. Bitcoin needs to hold the critical support level of $86,000. If it fails to do so, it may drop to the $82,000-$83,000 range. The Nasdaq needs to hold the important psychological level of 18,000 points.
For investors, the most important thing right now is to maintain liquidity. In times of rising market uncertainty, cash is no longer trash but ammunition to seize opportunities. Allocating some funds to RWA products like GAIB is equivalent to buying 'insurance' for the portfolio.
This bloody Thursday once again proves: When the global liquidity tide recedes, all risk assets are left exposed. But GAIB's RWA protocol provides an important insight: true hedging is not about predicting the future, but managing the present.
For investors, now is not the time to bet on a rebound, but rather a stage of preserving strength. Allocating 20-30% of assets to GAIB and other tools backed by real assets may not bring huge profits, but can preserve capital during the storm. Opportunities in the market are never lacking; what is lacking is the patience to survive until the opportunity arrives.
As a seasoned trader said: 'Bull markets are born in pessimism, grow in skepticism, and die in euphoria.' The current panic may be quietly sowing the seeds for the next bull market. The value of GAIB lies in its ability to enable investors to wait for the next cycle's rise.
