Bitcoin price rises 5% to $61,000 ahead of key Fed meeting, while Binance order book shows that the rally may be limited by a large number of sell orders between $61,000 and $62,500. The Fed is widely expected to cut its benchmark interest rate, which is good for investors but may trigger volatility in risky asset prices. Nevertheless, historical comparisons show that large rate cuts during recessions can have negative effects, but current inflation and unemployment conditions may prompt the Fed to cut rates quickly.

Key Points

- Bitcoin leads the cryptocurrency market higher, but Binance order book shows selling pressure may limit gains.

- Most major altcoins such as ETH, SOL, XRP, ADA, AVAX rose 2%-4%.

- Investors generally expect the Fed to make a large rate cut, which may lead to market volatility.

- There is still uncertainty in the market about the specific extent of the Fed's rate cut, which affects market expectations.

- Historical data shows that large rate cuts during recessions may lead to panic reactions.

- The current inflation has cooled and the unemployment rate has risen, which may prompt the Fed to cut rates quickly.

- Investors expect the federal funds rate to fall 125 basis points by the end of the year.