Algorithmic stablecoins like Terra have imploded because of a liquidity crisis, but others have displayed a steely resilience in the crypto bear market
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Long considered a hedge against inflation and a better alternative to fiat currencies that are susceptible to devaluation, most cryptocurrencies have significantly underperformed benchmark stock market indices.
The reason: Liquidity pressures brought on by the tightening of monetary policy by central banks led by the United States Federal Reserve (Fed) and including the Reserve Bank of India (RBI).
Fiat currencies are money issued by central banks that’s not backed by a commodity like gold.
Aimed at arresting record inflation in the world’s largest economy, the quantitative tightening has caused both stock and cryptocurrency prices to correct significantly from their peaks in a phenomenon eerily reminiscent of the bear market cycle in 2017.
While stablecoins like Tether (USDT) and USD Coin...
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