Haciyev Reşit 
As of September 3, 2025, the total assets of U.S. money market funds reached a record level of $7.26 trillion. Analysts believe this massive cash reserve, combined with potential Federal Reserve interest rate cuts, could act as a strong bullish catalyst for Bitcoin (BTC) and altcoins.
Historic Record in Money Market Funds
According to data from the Investment Company Institute (ICI), total assets of money market funds rose by $52.37 billion in the week ending September 3, hitting an all-time high of $7.26 trillion. This surge reflects how investors seek safer, low-risk funds during times of uncertainty.
Experts’ Outlook for Crypto
- David Duong, Head of Institutional Research at Coinbase, stated that if the Fed continues to cut interest rates, money parked in money market funds could shift toward equities and crypto assets.
- Jack Ablin, Chief Investment Strategist at Cresset, noted that if fund yields fall from 5% to 4.25% or 4%, investors may once again turn to riskier assets, potentially sparking new capital inflows into the crypto market.
How Do Money Market Funds Work?
Money market funds invest in short-term, high-quality debt instruments, offering investors low but safe returns. Both retail and institutional investors use them as a place to park cash. These funds are generally divided into three categories:
- Government funds
- Prime funds
- Tax-exempt funds
Latest data shows:
- Government funds increased by $44.71 billion, reaching $5.91 trillion.
- Prime funds grew by $5.87 billion, hitting $1.21 trillion.
- Tax-exempt funds rose by $1.79 billion, totaling $138.23 billion.
What Does This Mean for Bitcoin and Altcoins?
Historically, during periods of low interest rates, risk-seeking investors tend to move cash reserves into assets with higher return potential. With money market funds now totaling $7.26 trillion, even a small percentage flowing into crypto could drive new all-time highs for Bitcoin and spark a strong bull run in the altcoin market.
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