@merrymink

While many debate whether the September rate cut will trigger a short-term peak in the crypto market, such concerns may be overblown from a capital flow perspective. US money market funds have reached a record $7.2 trillion, with a significant amount of capital trapped in low-risk instruments. Historically, outflows from money market funds have correlated positively with gains in riskier assets. As rate cuts take effect, the attractiveness of these returns will gradually diminish, potentially unleashing more capital into crypto and other high-risk assets. This unprecedented cash pile is arguably the most potent potential tinderbox of this bull market.

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