The IMF now says that the brutal drop in Bitcoin “did not harm” global financial stability

The cryptocurrency with the largest market capitalization is down almost 70% from its all-time high last November, around $69,000.

“Cryptocurrency assets have experienced a dramatic sell-off that has led to huge losses in cryptocurrency investment vehicles and caused the failure of algorithmic stablecoins and cryptocurrency hedge funds, but the spillover effects on the financial system more broad have been limited so far“said the IMF.

The body was referring to the collapse of the Terra blockchain with its “algorithmic stablecoin” comment. Terra was popular with crypto traders until May, when its UST algorithmic stablecoin lost its peg to the dollar—and billions of dollars of investment disappeared. Many investors were burned out and contagion from Terra’s crash spread to other segments of the cryptocurrency market as a result.

Since then, institution after institution, from the Bank of England to the Federal Reserve, have criticized the idea of ​​stablecoins and seek to regulate them. However, there was no news about it. The Vice President of the Federal Reserve, Lael Brainardsaid earlier this month that Terra’s disappearance “reminiscent of the classic bullfights of history” and that new technologies would not necessarily protect investors from the same risks.