Bitcoin’s $2 Trillion Market Surge Outshines $515 Billion U.S. Bank Losses

• US banks have suffered half a trillion in unrealized losses.
• The losses are a result of the Fed’s rate increase. 
• Bitcoin is expected to end the year at $100,000.

The US banking sector has suffered unrealized losses worth a monumental $515 billion as 2024 nears end, sparking a bullish narrative in the digital asset space, which often thrives on the failure of the traditional banking sector. Bitcoin (BTC) and altcoins have capitalized on the ongoing challenges in the traditional banking system, strengthening their appeal as alternatives.

Notably, the losses, though lower than previous quarters, peaked at over $600 billion earlier this year, according to data shared by Barchart, a trading platform. Federal Reserve rate hikes have been a primary driver of these losses, devaluing bonds and fixed-income assets held by banks.

Rate Hikes and Banking Sector Decline

From 2008 to 2021, U.S. banks averaged quarterly unrealized gains of $20 billion. However, the Federal Reserve’s inflation-combating rate hikes in 2022 reversed this trend. Bonds and other fixed-income assets saw their values plummet, intensifying pressure on banks.

High-profile failures in…

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