Analysis: Funds from the U.S. Treasury market may drive a new round of crypto asset growth

The total size of US money market funds has grown to $7.26 trillion. Analysts say that if the Federal Reserve cuts interest rates, some funds may flow from money markets into stocks and cryptocurrencies. Coinbase Research Director David Duong stated that retail funds are likely to flow into risky assets such as cryptocurrencies after interest rate cuts. Cresset Chief Strategist Jack Ablin noted that if yields fall below 4%, investors may shift cash into stocks and cryptocurrencies. The direction of fund flows will depend on the economic environment and the extent of interest rate cuts.