The International Monetary Fund said that the Bitcoin bear market hasn't had an impact on global financial stability in a Tuesday report. 

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, according to CoinMarketCap data. The largest cryptocurrency by market cap is down nearly 70% from its all-time high last November of over $69,000. Virtually every other cryptocurrency is down, too, and hasn’t escaped this year’s sell-off. 

As investors face uncertainty with Russia’s war in Ukraine and supply chain issues—among other macroeconomic factors—they are shifting “risky” assets. Bitcoin and digital currencies are deemed risky—along with equities. 

“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. Terra was popular among crypto traders until May when its algorithmic stablecoin UST lost its peg to the dollar—and billions of dollars of investment disappeared. Many investors were burned and the contagion from the Terra fallout spread to other segments of the crypto market as a result. 

Institution after institution, from the Bank of England to the Federal Reserve, has since gone on to blast the idea of stablecoins—or at least say they need better regulation. The Federal Reserve Vice Chair Lael Brainard said earlier this month that Terra’s demise was “reminiscent of classic runs throughout history” and that new technologies wouldn’t necessarily protect investors from the same risks.