American investor and businessman Kevin O’Leary has expressed reservations about the possibility of the U.S. Federal Reserve cutting interest rates in December, a move generally seen as positive for cryptocurrencies. O’Leary stated that although a rate cut is possible, he believes that if the Fed maintains current rates, it will not negatively affect Bitcoin’s price. In a recent interview, he mentioned that he is investing without expecting a rate cut, citing high inflation levels as a reason the Fed might avoid reducing rates. Inflation reached an annual rate of 3 percent in September, the highest of the year. O’Leary highlighted the Fed’s dual mandate of achieving full employment and controlling inflation, noting that current tariffs and input costs also impact inflation.
The market trend suggests that a Fed rate cut typically attracts risk-averse investors to assets like cryptocurrencies, boosting their prices. However, some experts warn that an unexpected Fed decision could negatively affect Bitcoin and other cryptocurrencies. O’Leary does not foresee such a scenario and believes Bitcoin has stabilized, with its price likely to fluctuate within five percent but without significant trends. Over the past 30 days, Bitcoin’s price has dropped about 17 percent and is currently trading near $91,440. Market expectations for a December rate cut have fluctuated, falling to around 33 percent in mid-November before rising again to approximately 69 percent following dovish comments from the New York Fed president. Analysts attribute this increase to expectations of a softer Fed stance.
The Federal Reserve has cut rates multiple times recently to support the economy, but rising inflation has complicated further reductions. Investors and crypto market experts are closely monitoring the Fed’s December decision and its potential impact on cryptocurrencies.
Source: binance
