December Fed Cut Unlikely, But Bitcoin Will Be Fine: Kevin O’leary

Kevin O’Leary said he is not positioning his investments around expectations that the US Federal Reserve will cut rates in December.

American entrepreneur and investor Kevin O’Leary has pushed back against speculation that the US Federal Reserve will cut interest rates in December — a move that typically signals a favorable outlook for crypto.

However, O’Leary doesn’t anticipate a Fed rate hold negatively impacting Bitcoin’s (BTC) price.

“I don’t actually think the Fed's gonna cut in December,” O’Leary, also known as “Mr Wonderful,” told Cointelegraph during an interview on Tuesday, emphasizing that it’s not “gonna make a difference to Bitcoin.”

“I’m not investing that way. I’m not investing as if the Fed is going to cut rates. So I just don’t see it. I think there are lots of reasons why they might not,” O’Leary said.

O’Leary pointed to there being “a lot of inflation in the system.” The annual inflation rate rose to 3% in September, the highest since January.

“It’s a dual mandate, full employment and inflation. And so the tariffs are starting to take hold and input costs,” O’Leary said. Despite those concerns, market participants have assigned odds of 89.2% to a Fed rate cut in December, according to the CME’s FedWatch Tool.

Crypto traders typically see Fed rate cuts as bullish for riskier assets such as crypto, as investors tend to shift from bonds and term deposits that become less lucrative.

However, an unexpected Fed rate decision could negatively impact Bitcoin’s price and the broader crypto market, some fear.

However, O’Leary doesn’t anticipate this happening.

Source: CoinTelegraph