Bitcoin Fed Rate: O’Leary Says December Cut Is Unlikely

Veteran investor Kevin O’Leary, known as “Mr. Wonderful,” has made a bold statement about the Federal Reserve’s plans. He says a rate cut in December is unlikely, citing persistent inflation and economic uncertainties. He also doesn’t think that it will affect Bitcoin much, suggesting the cryptocurrency will likely remain near its current levels.

Inflation Still a Concern

O’Leary explained that inflation remains high in the economy. He said this makes a rate cut unlikely. “There’s a lot of inflation in the system,” he added.

This aligns with concerns from Fed officials. While some signs show the economy slowing, inflation is still above their comfort level. The Fed must balance controlling inflation with supporting jobs. Right now, controlling inflation seems more important.

What O’Leary Thinks About Bitcoin

Many investors hope that a Fed rate cut would boost risk assets, including Bitcoin. O’Leary disagrees. He said, “It’s not going to make a difference to Bitcoin.”

He believes Bitcoin will likely stay close to its current price. There may be small ups and downs, but no major surge. O’Leary also suggested that Bitcoin has already found a stable level for now.

His view is different from many traders who expect crypto to jump if rates drop. According to him, investors should not depend on Fed policy to drive big gains in Bitcoin.

Market Reactions

O’Leary’s comments come at a sensitive time. Many markets had expected a December rate cut. Some forecasts even gave it a high chance.

If the Fed holds rates steady, markets could feel nervous. Stocks and cryptocurrencies might see some volatility. Still, O’Leary’s outlook suggests Bitcoin will not crash. Any movements are likely to be small and temporary.

Why This Matters

O’Leary is a respected investor. His opinions are watched closely, especially by people interested in crypto.

Furthermore, his message is clear, which is don’t expect a rate cut to change the crypto market dramatically. Rather, investors should stay careful. They should plan for volatility and avoid chasing hype.

Key Takeaways for Investors

December rate cuts are looking less likely as inflation remains high and shows little sign of easing soon. Bitcoin may stay steady despite market expectations and short-term fluctuations. O’Leary’s advice is simple. As he says to be careful, stay patient, and don’t count on Bitcoin Fed rate moves to boost crypto or cause sudden big gains.