Global investors have recorded a record of 7.4 dollars Monetary market funds (MMFs) In mid-2025, according to data from investment Company Institute and analysis of companies like JPMorgan.
This treasure represents “the treasury of the key” – very liquid assets at low risk which give approximately 4 to 5% in the current environment, but signal prudence in a context of economic uncertainty such as the softening of employment growth and the pressures of inflation induced by prices.
Like the Federal reserve Prepares for its meeting of the Federal Committee of the Federal Committee on the Open Market (FOMC) from September 16 to 17, the markets are prices in an almost constant rate drop, with probabilities exceeding 90% for at least one reduction in the federal rate range of 4.25% to 25% of 4.25% current.
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Some analysts, such as those of Standard Charterd, even see 10% of a more aggressive drop of 50 basic points after the low job ratio in August (only 22,000 non -agricultural males added, well below expectations).
This configuration – a massive output capital combined with an easier monetary policy – has aroused generalized speculation on a potential boon for risk assets, including cryptocurrencies. The MMFs went from around $ 6 billions at the beginning of 2024 to 7.4 billions of dollars per quarter 2025, driven by high yields of the POST-Pandemic rate increases.
Investors, including institutions and retail savers, flocked here for security in the midst of volatile actions, geopolitical tensions and American prices under President Trump who pushed higher inflation (basic ICC at ~ 3.1% in August).
Lower rates will erode MMF yields (potentially lowering at 3.5 to 4% after the cut), which makes them less attractive. Historically, cash rotations follow the softening of the Fed: after the 2008 global financial crisis (GFC) and the 2020 cups, billions of billions have gone from refuge in equity and alternatives.
Analysts estimate that even a reallocation of 10 to 20% ($ 740 billion at 1.5 billion of dollars) could flood the markets. Chair Jerome Powell Jackson Hole’s speech at the end of August reported a pivot, citing the risk of the labor market (unemployment at 4.2%, with downward revisions of data from previous months). Inflation remains sticky but is considered focused on prices and temporary by around 80% of economists in recent Reuters polls.
Expect 2-3 drops in total in 2025, bringing rates to 3.00% to 3.25% by the end of the year. Crypto should gain significantly, as lower rates historically amplify liquidity and risk appetite – key motors for Bitcoin (BTC), Ethereum (ETH) and Altcoins. A cheaper loan encourages expenses and investments.
In 2020-2021, FED discounts at close rates of zero coincided with the rise of the BTC, from about $ 7,000 to $ 69,000 (almost 900%), fueled by institutional entries and FOMO retail. Analysts like Crypto Raven Project that if only 1 billion of dollars of mmfs run in the crypto (13% battery conservative), BTC could reach $ 150,000 at $ 160,000.
The larger market capitalization could inflate as stablescoins (for example, USDT reserves) accumulate, reporting a new entry into capital. Fed’s QE flooded the markets; Early Crypto (Launch de Bitcoin) benefited from a loose policy. According to 2019: BTC increased by ~ 90% as rates have dropped.
2024 Cups – Crypto market capitalization jumped 57% in four months after initial discounts, BTC reaching $ 64,000. The FNB BTC / ETH have since attracted 12 billion dollars + to the entries, positioning the crypto as a “strategic reserve” for companies such as microstrategy.
In 2025, with BTC at ~ ~ $ 116,500 and ETH at ~ $ 4,300 (early September), a reduction could trigger a rally of 15-20% in majors, per Hairstyle Estimates, as given obligations / in cash, the potential of cryptography cryptography. The lower opportunity costs make assets not reinforced such as the BTC more attractive vs treasures.
Sovereign and business treasury bills (for example, via ETF) could allocate more, in particular with regulatory clarity. As in 2021 (Altcoin Boursière Cap + 109% post-cuts), liquidity pursues high beta games. The X discussions highlight 5x-10x pumps for alts like soil, XRP and low bass.
The rate reductions often devalue the USD, increasing the assets denominated in dollars such as crypto. Stablecoin inputs are already doping, by data on the chain. Not all roads lead to cryptographic utopia. A drop in rate could point out a deeper economic weakness (for example, fears of recession of employment data), triggering risk movements.
Arthur Hayes (Co-founder of Bitmex) warned in 2024 that the cuts could strengthen the yen and inflate the costs, breaking the short-term risk assets. Volatility is high: the lever effect in derivatives peaks, and if inflation surprises more (for example, via prices), the Fed could suspend the cuts, as in the 2022 hiking cycle which landed the crypto 70% +.
Subouche signals (for example, RSI on BTC) suggest the chop before the increase. The crypto is ready to benefit from this barrel of 7.4 T $ and the fed flexible, potentially igniting a Bull Run from Q4 with BTC targeting $ 140,000 + and Alts turning above.
Historical data show that lower rates are correlated with 100 to 1,000% of cryptography gains over 6 to 12 months, amplified by ETF and institutional adoption. However, the impact will not be instantaneous – expecting initial volatility because the markets digest the cup.
