The Turmoil in Crypto: Interest Rates and Stablecoin Struggles

This chapter examines the turbulent state of the cryptocurrency market amid recent interest rate hikes by the Federal Reserve, emphasizing the sharper declines faced by cryptocurrencies compared to traditional stock indices. It highlights the collapse of the Terra stablecoin and its implications for market confidence and other stablecoins like Tether, raising concerns about transparency and regulatory oversight. The chapter provides critical insights into the challenges and potential long-term consequences for investors in a volatile financial landscape.