Bitcoin

United States money market funds have reached a new all-time high, and Bitcoin may be poised for its own record-breaking price surge.
Total investments in US money market funds have hit a new all-time high of over $6.2 trillion, mainly driven by the expectations of an upcoming interest rate cut, <a data-ct-non-breakable="null" href="https://x.com/KobeissiLetter/status/1827722427943522599" rel="nofollow noopener" target="_blank" text="null">according</a> to the Kobeissi Letter, which wrote in an Aug. 25 X post:
<blockquote>
 “Most of the inflows have been driven by institutional investors as they position portfolios in anticipation of Fed rate cuts […] The era of high rates is coming to an end.”
</blockquote>
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 <img alt="Bitcoin poised for breakout as US money market funds reach $6.2T" name="" src="https://s3.cointelegraph.com/uploads/2024-08/01918eac-a2ce-7d05-915f-86a9db1e1149">
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 Net inflows into US money market funds. Source: The Kobeissi Letter
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Lower interest rates in the world’s largest economy could increase investor appetite for risk assets such as Bitcoin (<a data-ct-non-breakable="null" href="https://cointelegraph.com/bitcoin-price" rel="null" target="null" text="null">BTC</a>) and invite more institutional investment.
Related: <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/bitcoin-analysts-converge-september-btc-price-breakout-86k" rel="null" target="null" text="null">Bitcoin analysts converge on a breakout in September — But is $86K possible?</a>
<h2 id="will-rate-cut-expectations-catalyze-a-bitcoin-breakout">Will rate cut expectations catalyze a Bitcoin breakout?</h2>
Investors are increasingly expecting an interest rate cut from the Federal Reserve at its upcoming meeting on Sept. 18.
<a data-ct-non-breakable="null" href="https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html" rel="nofollow noopener" target="_blank" text="null">According</a> to the latest data from the CME FedWatch tool, the odds of a 25 basis-point rate cut currently stand at 65.5%, while the odds of a 50 basis-point rate cut are at 34.5%.
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 <img alt="Bitcoin poised for breakout as US money market funds reach $6.2T" name="" src="https://s3.cointelegraph.com/uploads/2024-08/01918ead-a2e0-75db-ad8d-e47775cb36e1">
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 Odds of an interest rate cut. Source: CME FedWatch
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Meanwhile, the rate cut expectations could set Bitcoin price up for a rally above $68,000, according to popular analyst Titan of Crypto, who wrote in an Aug. 24 X <a data-ct-non-breakable="null" href="https://x.com/Washigorira/status/1827242109566341577/photo/1" rel="null" target="null" text="null">post</a>:
<blockquote>
 “Bitcoin heading toward $68,000 target. BTC’s 18% surge is in progress.”
</blockquote>
<figure>
 <img alt="Bitcoin poised for breakout as US money market funds reach $6.2T" name="" src="https://s3.cointelegraph.com/uploads/2024-08/01918eae-52f5-79dc-81d1-bf8ea6703658">
 <figcaption style="text-align: center;">
 BTC/USD, 1-day chart. Breakout, moving average convergence/divergence crossover setup. Source: Titan of Crypto
 </figcaption>
</figure>
Related: <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/rfk-jr-drops-out-presidential-elections-race" rel="null" target="null" text="null">RFK Jr. drops out of presidential race, while Trump takes lead on Polymarket</a>
<h3 id="bitcoin-price-could-be-set-for-95-000-after-september">Bitcoin price could be set for $95,000 after September</h3>
While August has been historically known as a bearish month for Bitcoin, September could bring a much-awaited breakout.
Based on technical chart formations on the weekly chart, Bitcoin could be set for $95,000 next, according to popular analyst Mikybull.
The analyst <a data-ct-non-breakable="null" href="https://x.com/MikybullCrypto/status/1827986843721502744/photo/1" rel="null" target="null" text="null">wrote</a> in an Aug. 26 X post:
<blockquote>
 “Bitcoin in its final expansion (wave 5) looking ready. $95k and then $143k price targets.”
</blockquote>
 
<figure>
 <img alt="Bitcoin poised for breakout as US money market funds reach $6.2T" name="" src="https://s3.cointelegraph.com/uploads/2024-08/01918eae-dc51-7b9b-8aaf-8913f799e0f5">
 <figcaption style="text-align: center;">
 BTC/USD, 1-week chart. Source: Mikybull
 </figcaption>
</figure>
Inflows to the US-based spot Bitcoin exchange-traded funds (ETFs) are also starting to increase, which is a positive sign for Bitcoin’s price action.
According to Farside Investors data, the US spot Bitcoin ETFs saw over $252 million worth of cumulative net inflows on Aug. 23, which is more than twice the average daily inflows of $114 million.
<figure>
 <img alt="Bitcoin poised for breakout as US money market funds reach $6.2T" name="" src="https://s3.cointelegraph.com/uploads/2024-08/01918eaf-2260-7e77-a14a-02a2917aed0b">
 <figcaption style="text-align: center;">
 Bitcoin ETF flows (USD, million). Source: Farside Investors
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</figure>
However, Bitcoin faces significant resistance around $65,000. A potential rally above would liquidate over $528 million worth of cumulative leveraged short positions, <a data-ct-non-breakable="null" href="https://www.coinglass.com/pro/futures/LiquidationMap" rel="nofollow noopener" target="_blank" text="null">according</a> to CoinGlass data.
<figure>
 <img alt="Bitcoin poised for breakout as US money market funds reach $6.2T" name="" src="https://s3.cointelegraph.com/uploads/2024-08/01918eaf-6b25-771a-9e47-8e3178aee803">
 <figcaption style="text-align: center;">
 Bitcoin exchange liquidation map. Source: CoinGlass 
 Magazine: <a data-ct-non-breakable="null" href="https://cointelegraph.com/magazine/bitfinex-hacker-bitcoin-2024-senator-lummis-bitcoin-strategic-reserve-bill-cointelegraph-magazine/" rel="null" target="null" text="null">Criminal at Bitcoin 2024, BTC Strategic Reserve Bill, and more: Hodler’s Digest, July 28–Aug. 3</a>
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Bitcoin poised for breakout as US money market funds reach $6.2T

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