Bitcoin (BTC) price rises 5% to $61,000 ahead of Fed, but Binance order books suggest rally may be limited

The dynamic is not necessarily that simple, as the prospect of further cuts could cause a panic reaction for risk asset prices, K33 Research analysts noted. “Similar large drawdowns occurred during the 2001 and 2007 recessions, often signaling heightened risks of a U.S. recession,” K33 Research said in a report Tuesday. However, those historical comparisons could be misleading because real rates are at their peak as inflation has eased in recent months, allowing for a faster pace of cuts, the report added. Market participants currently see the federal funds rate 125 basis points lower by the end of the year.