Bitcoin's Resilience: A Fed Rate Cut Won't Break It, Says Kevin O'Leary
In a bold statement, renowned investor and entrepreneur Kevin O'Leary, aka 'Mr. Wonderful,' has dismissed speculations about a potential US Federal Reserve interest rate cut in December. While such a move is often seen as a positive sign for crypto, O'Leary believes it won't significantly impact Bitcoin's price.
'I don't think the Fed will cut rates in December, and it won't make a difference to Bitcoin,' O'Leary asserted during a recent interview. He further explained his stance, citing the current inflation rate of 3% in September, the highest since January, as a key factor.
'It's a dual mandate: full employment and inflation. Tariffs are taking effect, impacting input costs,' O'Leary elaborated. Despite these concerns, market predictions using the CME's FedWatch Tool suggest an 89.2% chance of a Fed rate cut in December.
Crypto traders often view Fed rate cuts as a bullish signal for riskier assets like crypto, as investors tend to shift away from bonds and term deposits. However, an unexpected Fed decision could cause a negative reaction in the crypto market, a concern that O'Leary doesn't share.
'Bitcoin has found a level for now, and I don't see its price going much lower,' O'Leary said. 'I expect it to drift within 5% of its current value in either direction, but I don't see many catalysts for a significant upside.'
Currently, Bitcoin is trading at $91,440, according to CoinMarketCap. Market expectations for a December rate cut have fluctuated significantly in recent weeks. Just a few days ago, on November 21st, the odds of a rate cut nearly doubled to 69.40% after dovish comments from New York Fed president John Williams. Bloomberg analyst Joe Weisenthal attributed this shift to Williams' remarks.
Following the first rate cut in September and another in November, markets generally anticipated further easing by the Federal Reserve. However, the upcoming decision remains highly volatile, leaving room for surprises.
And here's the controversial part: Do you think O'Leary's prediction will hold true? Will Bitcoin remain resilient despite the Fed's moves? Share your thoughts in the comments!
