The International Monetary Fund released a report on the state of the world economy, which states that the fall of the cryptocurrency market did not affect the stability of the global financial system.
In the report “World Economic Prospects: A Gloomy and Uncertain Future,” IMF analysts noted a significant and even “dramatic” drop in the cryptocurrency market. Experts emphasize that since the peak of November 2020, the bitcoin rate has fallen by 70%. The situation is similar with other digital assets.
One of the main reasons for the fall of the crypto market, IMF experts called uncertainty in global financial markets. Events in Ukraine, problems with supply chains, threats of inflation and recession have led investors to abandon risky assets. In addition to the fall of the crypto market, indicators also fell on the stock market.
“The fall of the cryptocurrency market led to significant losses for investment funds, the collapse of some algorithmic stablecoins and the bankruptcy of cryptocurrency hedge funds. However, the impact on the wider financial system has been limited,” the report emphasizes.
We are talking about the bankruptcy of Three Arrows Capital and some other cryptocurrency companies, as well as the collapse of the Terra ecosystem in early May.
Source: Bits
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