An expert explains the crypto dip: Why the market is down and what you should be doing during this time

So what exactly is causing all the dipping?

Experts believe that the primary reason for the current market crash is panic caused by the current state of the world. The lingering effects of COVID-19 on economic activities, the Ukraine-Russia war and global inflation have made many investors worried about the market’s stability. When this happens, people tend to sell their assets, and the more volatile assets — like crypto and stocks — are usually the first to go. Once people start selling in large volumes, the market starts to slip.

Stablecoins are not meant to be volatile so why are they crashing?

Yele says that saying stablecoins are crashing is inaccurate. Some are, but most are not.

  • Commodity-backed stablecoins (Paxos Gold)
  • Crypto-collateralised stablecoins
  • Algorithmic stablecoins

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