Fed’s $100B loss sparks Bitcoin surge as crypto market contracts $100B

The U.S. Federal Reserve’s reported $100 billion loss in mid-2025 has intensified scrutiny of its monetary policy framework, with critics and crypto advocates linking the setback to prolonged high-interest-rate environments. The loss, attributed to elevated costs from interest payments on reserves and reverse repo operations under Chair Jerome Powell’s leadership, has sparked debates about the long-term sustainability of traditional fiat systems. Treasury Secretary Scott Bessent has called for a comprehensive review of the Fed’s practices, comparing the scale of errors to failures that would trigger immediate investigations in other federal agencies [1]. This financial strain coincided with a surge in Bitcoin adoption, as…

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