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

The Fed in the redThe main reason behind this monetary problem is that the interest payments on the Feds debt have exceeded the revenues created from its holdings and the services it provides to the financial sector.As a result of this advancement, financiers are now scrambling to grasp how this will affect interest rates and the demand for provably scarce assets like BTC.Fed earnings remittances due to the U.S. Treasury, USD (millions). Related: How do the Feds interest rates affect the crypto market?The reality that the Feds balance sheet has sustained losses isnt surprising, specifically offered the significant interest rate hikes, which escalated from near-zero in March 2022 to the current level of 5.25%. Even if interest rates stay the same, Reuters recommended that the Feds losses are likely to continue for some time.

The Fed in the redThe primary factor behind this financial problem is that the interest payments on the Feds debt have actually exceeded the revenues created from its holdings and the services it supplies to the financial sector.As an outcome of this development, investors are now scrambling to grasp how this will impact interest rates and the demand for provably scarce assets like BTC.Fed revenues remittances due to the U.S. Treasury, USD (millions). Related: How do the Feds interest rates affect the crypto market?The reality that the Feds balance sheet has actually incurred losses isnt surprising, particularly given the substantial interest rate hikes, which intensified from near-zero in March 2022 to the existing level of 5.25%. Even if interest rates stay the same, Reuters suggested that the Feds losses are likely to persist for some time. Investors are apprehensive that the Fed may discover itself forced to further raise interest rates in order to fight the dominating inflationary pressures.