Reverse Causality and Safe-Haven Dynamics

Background: The relationship between stablecoin market activity and the volatility of broader cryptocurrency markets is an area of ongoing investigation in digital asset finance. While stablecoins facilitate transactions, their role as a leading indicator for market risk transmission remains partially characterized.

Question / Future Work: Investigating the reverse causal direction to determine if cryptocurrency factors lead stablecoin factors, specifically to capture the potential safe-haven dynamic where cryptocurrency downside volatility leads to an increase in stablecoin upside volatility (indicating a flight to stability).