Crypto crash does not have major impact on broader financial systems, says IMF

The sell-off in the crypto market does not have a major effect on global financial conditions, the International Monetary Fund wrote in a report this week.

“Crypto assets have experienced a dramatic sell-off that has led to large losses,” the IMF’s World Economic Outlook Update for July 2022 stated. “But spill overs to the broader financial system have been limited so far.”

The IMF mentioned shocks like higher-than-expected inflation worldwide, a worse than anticipated slowdown in China, and spill overs from the Russia-Ukraine war contributing to a “gloomy and uncertain” economic outlook. The crypto crash meanwhile had a limited impact.