Countdown to Fed rate cut! $7 trillion in money market funds is about to ignite a surge in Bitcoin
Crypto alert!
The size of U.S. money market funds has soared to $7.26 trillion, a historic high!
Analysts assert that this massive influx of capital will directly drive explosive growth in the crypto market!
Key data: Money market funds surged by $52.37 billion in a single week, exceeding 1.5 times the total market cap of crypto. Coinbase's institutional research director David Duong pointed out: "The Fed's rate cut will trigger retail funds to flow from money market funds yielding 4.5% annually into high-yield assets like Bitcoin.
"Cresset's chief strategist Jack Ablin calculated: For every 1 basis point decrease in yield, $7.2 billion is released; if it drops to 4%, it will release $3.6 trillion—equivalent to injecting half the market cap of Bitcoin into the crypto market!
Historical validation: The Fed's zero interest rate in 2020 led to a 1500% surge in Bitcoin. This round of rate cuts has even more room, but follows a "gradual" strategy, allowing liquidity to be released more persistently. Asian sovereign funds have already positioned themselves, and Grayscale has revealed that Middle Eastern capital is accelerating its purchases of Bitcoin.
Risk warning: Fed hawkish statements have previously triggered a single-day drop of 4.6% in Bitcoin, with 250,000 people liquidating $700 million. Technical analysis shows Bitcoin has strong support at $100,000, with institutional holding costs concentrated in the $92,000-$105,000 range.
Key point: If the Fed's rate decision on September 18 results in a 25 basis point cut and signals dovishness, Bitcoin may challenge a new high of $150,000.
Recommendation: Allocate 50% to spot + 30% to options hedging, with the remaining 20% as flexible funds—before the $7 trillion flood of capital, we must respect the market!
Follow the financial sister for investment decisions with greater confidence. As the crypto market fluctuates, the financial sister will accompany you on your journey!
