from what you're saying, it's going to go down even further in the near future. so people should sell their bitcoin and wait to buy it back. that way they can have MORE bitcoin than if they didn't do anything. fiat is the safest place to have their money in these type of situations.
Bitcoin has dropped more than 11% in just the last 24 hours but that doesn't mean it's certain to fall more so the idea of selling bitcoin now and waiting to buy it back isn't exactly a wise idea. This strategy is too risky and I think it's not worth the risk.
$1 is still $1 no matter how much the markets tank.
Times like this remind me, I remember someone saying they don't want to keep money in the bank, their savings are also bitcoin. I wonder if their savings (BTC) lose more than 10% of their value in one day, how will they handle it if they need to use it in an emergency?
Inflation causes fiat to lose value but will not be worse than bitcoin being dumped in the short term, those who save with BTC will understand that fiat will also be important in some cases in the short term.