Eseandre Mordi
⬤ Federal Reserve data shows that U.S. money market fund assets have hit a record $7 trillion. The surge reflects years of investors parking cash in low-risk accounts during the Fed's rate-hiking cycle.
⬤ Market observers are watching this enormous capital reserve closely. The thinking is simple: when rates fall, money sitting in low-yield accounts tends to chase better returns. Crypto could be one destination for that capital.
⬤ The $7 trillion figure comes straight from official Fed data. Whether funds actually move into crypto markets remains speculation, but the logic follows a familiar pattern—falling rates typically push investors toward riskier assets.
⬤ The sheer amount of idle cash in the financial system matters. Even a small percentage shifting out of money funds could significantly impact crypto demand, especially for major assets like Bitcoin and XRP, as the rate environment changes.
Eseandre Mordi
