- Bitcoin’s Twitter account stated that the Federal Reserve is technically bankrupt.
- It also reported that the FED will post its first annual operating loss of $80 billion.
- The FED is also alleged to have a negative capital of $38 billion.
The Twitter account for Bitcoin has tweeted that the Federal Reserve is now technically bankrupt. It is alleged that the FED will post its first annual operating loss of $80 billion in 2023.
The @federalreserve is technically bankrupt. In 2023 the Fed will post its first annual operating loss of $80 billion since 1915 and will have a negative capital of $38B. This loss does not count the $1.3 trillion unrealized loss on its portfolio. pic.twitter.com/DMYFhXGx59— Bitcoin (@Bitcoin) March 14, 2023
The annual operating loss of $80 billion would be the first one since 1915. The FED is also said to have negative capital of $38 billion. The Twitter account also mentioned that this loss doesn’t include the $1.3 trillion in unrealized losses on its portfolio.
There has been a lot of coverage in 2023 about several major banks closing down. Silvergate Bank, Silicon Valley Bank, and Signature Bank (NASDAQ:SBNY) have all ceased operations. The collapse of these banks, especially Silicon Valley Bank, is considered one of the biggest failures since the financial crisis of 2008.
Although market prices were unstable on Monday, the overall sentiment was that the FED would persist in tightening its monetary policy. Traders estimated an 85% likelihood of a 0.25% rise in interest rates during the Federal Open Market Committee’s gathering in Washington, D.C., on March 21-22.
On Monday, Goldman Sachs (NYSE:GS) stated that it does not anticipate the Federal Reserve to raise interest rates this month. However, hardly any other Wall Street analysts share this viewpoint. On the other hand, Bank of America (NYSE:BAC) and Citigroup (NYSE:C) predict that the FED will increase rates by a quarter-point.
Amidst the chaos, the crypto market has been on a bullish rally. Bitcoin breached the $24,500 price range, and the whole market is trading in the green. It is unclear at the moment whether this is a bull trap.
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