Analysis: The funds in the U.S. Treasury market may drive a new round of increases in crypto assets

ChainCatcher news, according to CoinDesk, the total size of U.S. money market funds has increased to $7.26 trillion. Analysts say that if the Federal Reserve lowers interest rates, some funds may flow from the money market to stocks and cryptocurrencies.

Coinbase's research director David Duong stated that retail funds are expected to enter risk assets like cryptocurrencies after interest rate cuts. Cresset's chief strategist Jack Ablin pointed out that if yields fall below 4%, investors may shift cash into stocks and cryptocurrencies. The flow of funds depends on the economic environment and the extent of rate cuts.