The post The $7T Tailwind for BTC and Altcoins appeared on BitcoinEthereumNews.com.

U.S. money market funds currently hold over $7 trillion, which some analysts believe could soon be rotated into various asset classes, including cryptocurrencies, potentially fueling the next leg higher in bitcoin BTC$112,796.16 and the alternative cryptocurrencies (altcoins). A money market fund is a type of mutual fund that invests in high-quality, short-term debt instruments, such as Treasury bills, certificates of deposit, and commercial paper. Total money market fund assets increased by $52.37 billion to $7.26 trillion for the week ended Sept. 3, according to the Investment Company Institute (ICI). Assets of retail money market funds increased by $18.90 billion to $2.96 trillion, and institutional funds rose by $33.47 billion to $4.29 trillion. ICI reports money market fund assets to the Federal Reserve each week. Money market funds have swelled in recent years, initially drawing money due to their haven appeal during the coronavirus-induced crisis of early 2020 and later during the Fed’s rate hike cycle, which pushed up yields and attracted investors. Inflows remained robust late last year even as the Fed cut rates from 5.25% to 4.25%. However, further rate cuts could prompt investors to shift a significant portion of their cash pile into other assets, including cryptocurrencies, according to David Duong, Institutional Head of Research at Coinbase. “There is over $7 trillion inside money market funds, and all of that is retail money. As those rate cuts start to come in, all of that retail cash flow is really going to enter other asset classes such as equities, crypto and others,” Duong told CoinDesk in an interview. The U.S. central bank is expected to lower its target rate by at least 25 basis points when it meets next week, according to the CME’s FedWatch tool. Some market participants are anticipating a 50 bps reduction. Traditional market observers are equally psyched about the money market cash pile. In an interview with Boutique Family…

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Filed under: News - @ September 9, 2025 12:29 pm