ChainCatcher news, the European Central Bank (ECB) questioned the view that stablecoins are a "safe haven" for investors during market turmoil. The ECB found that stablecoins are actually highly affected by US monetary policy.

This working paper delves into the connection between US monetary policy, money market funds (MMFs) and stablecoins. The study pointed out that US dollar policy is a key factor connecting cryptocurrencies and traditional financial markets. Stablecoins are usually pegged to fiat currencies (such as the US dollar) and have fixed prices, but are vulnerable to shocks within traditional financial markets, such as the United States raising interest rates.

This finding reminds investors that even crypto assets, which are considered relatively stable, cannot be completely separated from the volatility of traditional financial markets.