According to Cointelegraph, US money market funds have reached a new all-time high of over $6.2 trillion, driven primarily by expectations of an upcoming interest rate cut. The Kobeissi Letter noted in an Aug. 25 post that most inflows have been driven by institutional investors positioning their portfolios in anticipation of Federal Reserve rate cuts, signaling an end to the era of high rates.
Lower interest rates in the world's largest economy could boost investor appetite for risk assets such as Bitcoin (BTC) and attract more institutional investment. Investors are increasingly expecting an interest rate cut from the Federal Reserve at its upcoming meeting on Sept. 18. According to the latest data from the CME FedWatch tool, the odds of a 25-basis-point rate cut stand at 65.5%, while the odds of a 50-basis-point rate cut are at 34.5%.
Popular analyst Titan of Crypto suggested in an Aug. 24 post that Bitcoin could rally above $68,000, with an 18% surge in progress. Another analyst, Mikybull, indicated in an Aug. 26 post that Bitcoin could reach $95,000 based on technical chart formations on the weekly chart, with potential targets of $95,000 and $143,000.
Additionally, inflows from US spot Bitcoin exchange-traded funds (ETFs) are increasing, which is a positive sign for Bitcoin's price action. Data from Farside Investors showed that US Bitcoin ETFs saw over $252 million worth of cumulative net inflows on Aug. 23, more than twice the average daily inflows of $114 million.
However, Bitcoin faces significant resistance around $65,000. A potential rally above this level could liquidate over $528 million worth of cumulative leveraged short positions, according to CoinGlass data.
