Bitcoin investors are bullish on the US Fed’s $100B loss

The U.S. Federal Reserve made a significant announcement on Sept. 14, revealing accumulated losses of $100 billion in 2023. What’s more, this situation is expected to worsen for the Fed, according to Reuters. But for risk assets like Bitcoin
BTC, this may actually be a blessing in disguise

The primary reason behind this financial setback is that the interest payments on the Fed’s debt have surpassed the earnings generated from its holdings and the services it provides to the financial sector.
As a result of this development, investors are now scrambling to grasp how this will impact interest rates and the demand for provably scarce assets like BTC.

Some analysts are of the opinion that the Fed’s losses, which commenced a year ago, could potentially double by 2024. The central bank categorizes these negative results as “deferred assets,” arguing that there’s no immediate necessity to cover them.

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Sep-19-2023 07:53:08 AM