Analysis: 7 trillion money market fund reserves may drive the next round of growth in the crypto market
According to ChainCatcher, citing data from the Investment Company Institute (ICI), as of the week ending September 3, total assets in US money market funds increased by $52.37 billion, reaching a historic high of $7.26 trillion. Analysts believe that this massive amount of capital could drive bitcoin and other altcoins into the next round of gains.
David Duong, Head of Institutional Research at an exchange, stated that as the Federal Reserve further cuts interest rates, retail funds may flow from money market funds into assets such as stocks and cryptocurrencies. Jack Ablin, Chief Investment Strategist at Cresset, pointed out that if money market fund yields drop from 4.5% to 4.25% or 4%, investors will reallocate capital to stocks and cryptocurrencies.
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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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