Bitcoin Ready to Bounce as $7.8 Trillion Cash Pile Awaits Rate Cut Opportunity

A massive cash pile of $7.8 trillion is sitting idle in US money market funds, waiting for the right opportunity to rotate into riskier assets. This phenomenon occurs when the Federal Reserve begins rate cuts, which typically happens around 500-1000 days after the initial cut.

Historically, during this period, liquidity leaves the money market funds and flows out into the markets, creating a window of opportunity for investors to shift their assets. Bitcoin analysts believe that once this liquidity is released, the cryptocurrency may rebound significantly.