Question 6 (6 points) Figure 14 plots the price response of the six largest stablecoins by market cap, based on data in March 2020. Shaded areas indicate the period in which the price of Bitcoin fell by 50%. Figure 14: Response of stablecoin prices to negative price shock of Bitcoin in March, 2020 Price USDT 1.05 1.025 Price USDC 1,04 1.020 2 1.03 1.015 1.02 Pric 9 1.010 1.01 #1.005 1.00 1.000 0.90 0,905 0.990 2020-03-05 2020-03-09 2020-03-13 2020-03-17 Date 2020-03-21 2020-03-25 0.985 2020-03-29 2029 8463-01 2020-03-05 2020-03-09 2020-03-13 2020-03-17 Date 2020-03-21 2020-03-25 2020-03-29 1.030 Price PAX 1.025 1.020 Price BUSD 1.10 1.015 1.08 rice (USD) 2 1.010 1.005 1.06 Price (USD) 1.000 = 1.04 0.995 0.990 1,021 2020-03-05 1.00 2020-03-09 2020-03-13 2020-03-17 2020-03-21 2020-03-25 2020-03-29 20204843-01 2020-03-05 2020-03-09 2020-03-13 2020-03-17 Date 2020-03-21 2020-03-25 2020-03-291,04 Price TUSD 1.03 1.10 1.02 Price DAI Price (USD) 1.08 1.01 1.00 1.06 Price (USD) 1.04 0.99 2070,83,3 61 1,02 2020-03-05 2020-03-09 2020-03-13 2020-03-17 2020-03-21 1.00 2020-03-25 Date 2020-03-29 2020 84:3-01 2020-03-05 2020-03-09 2020-03-13 2020-03-17 2020-03-21 2020-03-25 Note: Price (in USD) of 6 largest stablecoins by market cap during March 2020. Price data are from Coinapi Date 2020-03-29 and are hourly, available on cryptocurrency exchanges Binance, Bitfinex, Bittrex, and Kraken. Shaded areas indicate the period when the price of Bitcoin fell approximately 50% from March 12th to March 13th