Kevin O'Leary Downplays Fed Rate Impact on Bitcoin Price

O'Leary's Bullish Bitcoin Stance Defies Market Expectations

American entrepreneur and investor Kevin O’Leary has pushed back against widespread speculation that the US Federal Reserve will cut interest rates in December – a move that's generally viewed as positive for crypto assets. O’Leary, however, doesn’t foresee a Fed rate hold significantly impacting Bitcoin’s (BTC) price.

“I don’t actually think the Fed’s gonna cut in December,” O’Leary, famously known as “Mr. Wonderful,” stated in a recent interview, emphasizing that such a decision won’t “make a difference to Bitcoin.”

Mr. Wonderful Predicts Bitcoin Price to Stay Within 5% Range

“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 elaborated.

O’Leary highlighted the continued presence of “a lot of inflation in the system.” The annual inflation rate climbed to 3% in September, marking its highest level 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 explained. Despite these concerns, market participants are currently assigning an 89.2% probability to a Fed rate cut in December, according to the CME’s FedWatch Tool.

Crypto traders typically interpret Fed rate cuts as a bullish signal for riskier assets like cryptocurrencies, as investors often reallocate funds from bonds and term deposits, which become less attractive in lower-rate environments.

Conversely, some fear that an unexpected Fed rate decision could negatively affect Bitcoin’s price and the broader crypto market. However, O’Leary doesn’t anticipate such an outcome.

O’Leary believes that Bitcoin has “found a level for now” and doesn't predict a substantial price decline. “I think it’s going to sort of drift within 5% of where it is now, in either direction, but I don’t see a lot of upside catalyst,” O’Leary concluded.

Bitcoin is currently trading around $91,440, according to CoinMarketCap data.

Fed Rate Volatility Precedes Decision

Market expectations for a December rate cut were significantly less optimistic just weeks ago.

On November 19th, the probability of a December interest rate cut plummeted to 33%, a sharp contrast to the approximately 67% probability assigned by investors in the first week of November.

However, just days later, on November 21st, the odds nearly doubled to 69.40% following dovish comments from New York Fed President John Williams, who suggested that the Fed could implement rate cuts “in the near term” without jeopardizing its inflation targets.

Bloomberg analyst Joe Weisenthal attributed this surge in probability to Williams’ remarks.

Following an anticipated initial rate cut in September 2025 and another in November, markets widely anticipate the Federal Reserve to continue easing monetary policy through the end of the year.