The International Monetary Fund has said that the Bitcoin bear market hasn’t had an impact on global financial stability.
In its ‘World Economic Outlook Update: Gloomy and More Uncertain’ report published today, the IMF acknowledged that the crypto market has experienced a “dramatic” sell-off—but added that it hasn’t yet hurt the financial system.
Bitcoin’s price was today down nearly 5%, trading for $20,811.94,
After a tentative recovery in 2021, the economic outlook has turned gloomy and uncertain, with the probability of a global recession.
“Crypto assets have experienced a dramatic sell-off that has led to large losses in crypto investment vehicles and caused the failure of algorithmic stablecoins and crypto hedge funds, but spillovers to the broader financial system have been limited so far,” the IMF said.
The body was referring to the collapse of blockchain Terra with its “algorithmic stablecoin” comment.