Kevin O’Leary Sees Limited Impact of Fed Rate Cut on Bitcoin’s Value

TLDR

• Kevin O’Leary believes the potential December Fed rate cut will not significantly affect Bitcoin’s price.
• O’Leary argues that Bitcoin will likely remain within 5% of its current value, regardless of the Fed’s actions.
• The CME FedWatch Tool indicates an 88% chance of a Fed rate cut in December, but O’Leary remains unconvinced.
• Inflationary pressures and rising input costs will likely prevent the Fed from implementing substantial rate cuts.
• Bitcoin’s value has dropped by 14% over the past month, but O’Leary expects its price to stay stable.

Kevin O’Leary, a prominent investor, believes a potential Federal Reserve rate cut in December won’t impact Bitcoin’s price much. Despite expectations for monetary easing, O’Leary argues that Bitcoin will likely “drift within 5% of where it is now.” He added that the Fed’s actions will not substantially change Bitcoin’s trading range.

O’Leary Questions Impact of Fed Rate Cut on Bitcoin

O’Leary’s view contrasts with widespread market sentiment. The CME FedWatch Tool shows an 88% chance that the Federal Reserve will reduce interest rates this December. Most investors anticipate that a rate cut will boost alternative assets, including Bitcoin. However, O’Leary remains unconvinced that this will cause a noticeable shift in Bitcoin’s value.

He cited inflationary pressures as a reason for his skepticism. O’Leary believes that rising input prices and tariffs will prevent the Fed from implementing large rate cuts. He explained that the Fed’s dual mandate, maintaining price stability and full employment, makes any drastic policy change unlikely.

Inflationary Concerns Limit Potential for Rate Cuts

O’Leary also pointed to recent inflation statistics to support his cautious stance. In September, U.S. annual inflation hit 3%, the highest level since January. He believes this will make it difficult for the Fed to strike a balance between economic growth and price stability.

According to O’Leary, even if the Fed lowers rates, the cuts will be too small or too slow to trigger a boom in the cryptocurrency market. He mentioned that inflation would likely keep the Fed from making aggressive moves. As a result, O’Leary expects Bitcoin’s value to stay stable, despite the speculation surrounding the December Fed rate cut.

Over the past month, Bitcoin’s price has dropped by about 14%. Despite the market’s shifting expectations of the Fed’s actions, Bitcoin has shown little volatility. O’Leary believes that concerns over the Fed’s interest rate decisions causing instability in crypto markets are exaggerated.

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