The post Yield Tsunami Bitcoin: Fed Rate Cuts Could Trigger Massive Capital Rotation Into STRC appeared on BitcoinEthereumNews.com.

TLDR: A 300bps rate drop could erase nearly $234B in annual MMF income. Even 5% MMF rotation may release $390B into higher-yield alternatives. STRC’s 11.25% yield positions it for institutional inflows during easing. New STRC issuance could translate into large-scale Bitcoin purchases. Yield Tsunami Bitcoin is gaining attention after investor Adam Livingston projected a sharp capital rotation toward Bitcoin-linked yield vehicles. In a detailed post on X, Livingston argued that ongoing Federal Reserve rate cuts could erase hundreds of billions in annual income from U.S. money market funds. He contends that falling short-term yields may push pensions, insurers, and endowments toward higher-yielding listed structures tied to Bitcoin exposure. Rate Cuts and the Projected $234 Billion Income Compression Livingston stated that U.S. money market funds hold roughly $7.79 trillion as of mid-February 2026. He noted that current yields near 4.5% to 5% reflect the prior hiking cycle. However, he argued that an additional 75 to 100 basis points of cuts could reduce front-end rates toward 3% or lower. According to his calculations, a 300-basis-point decline across $7.79 trillion equates to about $233.7 billion in lost annual income. He described this as a large-scale compression event for conservative capital pools. As yields fall, institutions dependent on fixed income cash flows may reallocate capital. In his tweet, Livingston called this shift a “trillion-dollar yield tsunami” moving toward Bitcoin-aligned assets. He referenced historical data from the post-2008 and 2020 easing cycles. During those periods, alternative credit and private structures experienced accelerated asset growth. A TRILLION DOLLAR YIELD TSUNAMI IS COMING STRAIGHT FOR BITCOIN The Fed is revving up the rate-cut guillotine again. We’re already 125bps into the current easing cycle as of early 2026, with the street pricing in another 75-100bps of bloodletting to get the funds rate down… pic.twitter.com/gRKzPPA3mp — Adam Livingston (@AdamBLiv)…

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Filed under: News - @ February 22, 2026 9:28 pm