US money market assets hit record $7.98 trillion: ICI

The record inflow into money market funds signals a persistent preference for liquidity and short-term safety over risk assets, which can act as a headwind for capital rotation into crypto and other volatile markets. This concentration of cash also suggests investors are waiting for clearer direction, making the sustainability of this trend a key gauge for when risk appetite might return. Whether this cash pile begins to deploy into higher-yielding or risk-on assets, or continues to grow, will be the main signal to watch.