Financial institutions are seeking high yield in the Federal Reserve's Reverse Repurchase Agreement (RRP), which could limit the liquidity boost for Bitcoin despite expectations of a Fed rate cut.
This trend indicates that the anticipated rate cut may not provide the expected uplift to Bitcoin's price due to reduced liquidity inflows.
Instead of benefiting from the rate cut, Bitcoin might face challenges related to liquidity constraints imposed by the higher yields sought in RRP by financial institutions.
