Can new highs in Bitcoin and Ethereum come before the end of 2025? Total assets of US money market funds rose to a record $7.26 trillion in the seven-day jump, a seven-day jump the week ending September 3, according to data from the Investment Company Institute (ICI).
ICI's weekly report to the Federal Reserve, released Tuesday, shows an additional $189 billion, bringing it to a total of $2.96 trillion. Institutional funding has increased further from $33.47 billion to $4.29 trillion.
Researchers believe that most money could flow into riskier assets such as Bitcoin and altcoin, which could trigger the operation of No. 4 2025 Bull Market.
Market Analysis: Cash Turnover to Crypto Everible
A money market fund is a type of mutual fund that invests in highly liquid, short-term debt certificates, such as US Treasury bills, certificates of deposits, and commercial paper. Investors have come to prefer MMF during the Covid-19 crisis in early 2020, when many viewed the vehicles as a “safety net” from market turmoil.
Crypto analysts view the accumulation of money market funds as a potential fuel for the next gathering of digital assets. Coinbase research head David Duong argued that fee cuts from the Federal Reserve could boost leaks from these funds into risky assets such as stocks and cryptocurrencies.
“We have over $7 trillion in the money market, and it's all about retail money,” Duon said in an interview earlier this week. “As these interest rate cuts begin, all of that retail cash flow will actually be participating in other asset classes, such as stocks, crypto.”
economist I look forward to it The Federal Reserve cut its target interest rate at its September 16th meeting, cutting market prices at least 25 base points. Approximately 19% of multi-layered prediction We predict a 50 basepoint reduction, but 78% see a 25 basepoint trim as more practical.
Jack Ablin, Clesett's chief investment strategist, explained in an interview with Boutique Family Office & Private Wealth Management. “If that yield is knocked down to 4.25% or 4%, it could encourage more investors to redeploy cash to the stock.”
Crypto is steadily on the market ahead of CPI Data Week
Despite jitter surrounding cash outflows to digital assets, the crypto market remains curtailed. Bitcoin traded flats over $112,000 on Monday, while Ethereum merged for $4,350. The CD20 index, which measures the performance of the largest digital assets, rose 1.6%, slightly above 4,000.
The August non-farm salary report showed that only 22,000 jobs have been added, much below the 75,000 forecast. The weak print pushed the futures market high, dragging the Treasury yields for two years to annual lows, and investors priced 72 basis points of interest rate cuts this year.
Crypto Markets optional data confirmed a careful stance. QCP Capital reported that the risk reversal is increasingly skewed against puts, and the implicit volatility of the short date ahead of the release of the consumer price index on Thursday was rising.
Focused US economic data health: whether to invest in crypto
Some economists view the record accumulation of money market funds as a sign of fundamental economic tensions. According to X's pseudonym market strategist named Endgame Macro, the numbers resemble previous stress periods.
“This accumulation can only be seen when investors want yields but don't want to take on periods or stock risk,” says Endgame Macro I wrote it. “That happened when the fees were on the floor in 2020-21 after the dot com bust, once again after the GFC, and money was waiting for the bystanders.”
