Right now, about $7.5 trillion is parked in money market funds, basically sitting on the sidelines, earning safe yields while everyone waits for the Fed to make its next move.
Here’s the thing… once Fed easing kicks in and rates start coming down, that massive pile of liquidity won’t just sit there.
It’s likely to flow back into risk-on assets stocks, crypto, tech, you name it.
When money starts leaving those “safe” yields, it usually hunts for growth and upside.
That’s when things can get real interesting for markets like crypto especially assets that already have strong momentum.
The setup is simple:
Huge liquidity waiting.
Rates likely heading lower.
Risk assets ready to catch the wave.
Feels like the calm before the
liquidity storm.